ALAMOGORDO, N.M. — Grace Nagamine, a candidate for New Mexico House District 51, announced a legislative proposal this week aimed at creating a recurring funding source for Bonito Lake, the popular fishing and recreation destination owned by the City of Alamogordo but located across the county line in Lincoln County.
The proposal previously championed NM District Rep 33, Nick Paul who resigned due to health issues. Nagamine has now offered to finish the job the present Otero County Representative Block has ignored. Nagamine would make a narrow change to the state Lodgers’ Tax Act, clarifying that a municipality may spend lodgers’ tax revenue on a tourism-related facility it owns in another New Mexico county. Under current law, that revenue can generally be used only for tourism facilities within the municipality itself or its home county — a restriction that leaves Bonito Lake ineligible even though Alamogordo owns it.
“Current state law limits the use of municipal lodgers’ tax revenue to tourism facilities located within the municipality or its home county,” Nagamine said. “That restriction prevents Alamogordo from using this visitor-generated revenue for the daily operation, maintenance and improvement of its own tourism facility simply because Bonito Lake sits across the county line. This change would benefit both Lincoln and Otero Counties and the tourism base with expanded access to Bonito lake and the natural resources that are so important to this region.”
Bonito Lake presents an unusual, possibly unique, situation in New Mexico. The lake serves as an important water resource for Alamogordo, but it also carries a 70-year history as a destination for fishing, day use, outdoor recreation and family gatherings, drawing visitors from both counties, across the state and beyond.
The fix, according to the campaign, would add a single short subsection to Section 3-38-21 NMSA 1978, the statute governing eligible uses of lodgers’ tax proceeds. The new language would allow a municipality to use the funds for acquiring, operating, improving, promoting and protecting a tourist-related facility or attraction it owns in another county within the state.
The legislation would not itself create or increase any tax. New Mexico law allows municipalities to charge a lodgers’ tax of up to 5% on hotel and short-term rental stays, but Alamogordo would still have to reinstate its local lodgers’ tax through a City Commission ordinance before any revenue could flow to the lake. If the city did so at the full 5%, state law would require 40% of the proceeds to go toward advertising and promoting tourism, while up to 60% — an estimated $200,000 to $240,000 annually — could be dedicated to operating, maintaining and improving Bonito Lake.
“This is not a state tax increase, and it would not take funding away from Lincoln County,”Nagamine said. “It would allow visitors staying in Alamogordo hotels and short-term rentals to help support the tourism facilities that attract people to our region.”
The campaign argues the benefits would reach beyond Alamogordo. Having an accessible lake and maintaining the lake for public use would bring visitors into Lincoln and Otero Counties as the regional tourism economy continues to recover from devastating fires and flooding, with those visitors purchasing food, fuel, supplies and services from businesses throughout the region. Also with the closing and proposed demolition of Sunspot the region can ill afford additional hits.
“A visitor’s dollar does not stop being a New Mexico dollar when it crosses a county line,” Nagamine said. “Every dollar brought into our state and spent in Otero or Lincoln County supports New Mexico businesses, generates state gross receipts taxes and circulates back through our communities.”
Supporters say the recurring revenue would help bridge the lake’s funding shortfall and reduce the burden on Alamogordo residents and utility customers, while preserving public access to a place where generations of families have fished, gathered and made memories.
“County lines should not prevent communities from working together to protect that tradition,” Nagamine said.
Nagamine said she will introduce the legislation when elected. House District 51 covers Otero County and is concentrated around Alamogordo. Nagamine said a priority will be to partner closely with District 33 Representative, Rex Wilson on regionally collaborative legislation to rebuild and expand tourism in Lincoln and Otero Counties to further improve business and expand our muti-county tax base via tourism.
To learn more about Grace Nagamine or to assist her campaign for District 51 State Representative visit:
The draft legislation with changes can be seen below: Bonito Lake Bill Funding Proposed Legislation Link
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