Rio Rancho loses up to $7.3 million a year in tax revenue while residents commute elsewhere for work

Rio Rancho is leaving up to $7.3 million a year in tax revenue on the table because tens of thousands of its residents spend their workdays — and their money — somewhere else, according to a market analysis presented to Sandoval County commissioners.

Rio Rancho Regional Chamber of Commerce President and CEO Jerry Schalow told commissioners that nearly 47,400 Sandoval County residents commute out of the county daily, taking $3.11 billion in payroll with them. The spending those workers do near their out-of-county jobs — gas, meals, dry cleaning, entertainment — drains an estimated $170 million to $284 million annually from the local economy. Rio Rancho’s 2.5625% gross receipts tax rate means the city loses an estimated $4.4 million to $7.3 million in tax revenue each year as a result, Schalow said.

“Everybody is driving east and west on those bridges every day,” Schalow told commissioners. “We have to recruit businesses. We have to flip that around.”

The numbers show why that gap is hard to close. Rio Rancho’s job base grew 28.1% between 2020 and 2025 — from 19,688 to 25,228 jobs — outpacing the national growth rate of 10.6% by nearly triple. But population growth has outrun job creation, leaving the city short an estimated 1,671 businesses compared to what a community its size would typically support.

Schalow pointed to manufacturing and healthcare as Rio Rancho’s strongest opportunities for closing that gap. Intel continues to hire, he said, and recent changes to state medical malpractice law could accelerate expansion at Presbyterian Hospital and Sandoval Regional Medical Center. “We need more specialties,” he said. “Orthopedics, vision, cancer treatment — all of those things.”

The city’s workforce is a selling point that often goes unrecognized, Schalow argued. One-third of county residents hold a bachelor’s degree or higher, and 34% hold associate degrees or trade certificates — a skilled trades concentration he called rare and directly suited to high-tech manufacturing recruitment.

BY THE NUMBERS

• Rio Rancho population: 116,600
• Rio Rancho job growth, 2020–2025: 28.1% vs. 10.6% nationally
• Daily outbound commuters, countywide: 47,399
• Annual payroll leaving the county: $3.11 billion
• Estimated lost workday spending: $170M–$284M per year
• Estimated lost GRT revenue, Rio Rancho: $4.4M–$7.3M per year
• Businesses Rio Rancho is short vs. Albuquerque metro benchmark: 1,671
• Residents with associate degrees or trade certificates: 34%