2025 Taos County Hospital Mill Levy Information

Our hospital has made important progress, but we continue to face uncertainty as the impacts of the “Big Beautiful Bill” unfold. These challenges are not unique to Holy Cross—they are affecting hospitals, especially rural hospitals, across New Mexico and the nation. Holy Cross is not at risk of immediate closure, but it faces real challenges that must be addressed to ensure its long-term strength and continued growth. Approximately three-quarters of the Holy Cross Hospital’s revenue comes from Medicare and Medicaid patients. Federal policy changes will add new restrictions for Medicaid eligibility and could leave more patients uninsured, adding financial strain to facilities that already provide a significant amount of under-reimbursed and uncompensated care.

Renewing the 1 mill levy is essential to bridging this gap and ensuring the healthcare safety net our community depends on remains strong. The levy approved in 2020 expired in 2024, and County Commissioners have now placed a renewal measure on the ballot this November.

Fast Facts

• Election Dates: Early voting runs October 7 – November 1 at the Taos County Courthouse and other locations. Election Day is November 4 at precincts countywide.
• Who Can Vote: All Taos County residents.
• Levy Details: Renewal of the 1 mill levy (not an increase) for 4 years, generating an estimated $1.5–$1.8 million annually for capital improvements – not operations.
• Use of Funds: Supports building maintenance, infrastructure upgrades, and medical equipment repairs and upgrades – not salaries or daily operations.
• Oversight: Funds are managed by Taos County, which owns the hospital building. Holy Cross reports expenditures quarterly.
• Regional Context: Taos County’s healthcare mill levy is among the lowest in the state; other counties fund hospitals at 4–6 mills.
• Why It Matters: Rural hospitals across the state and nation face closures and financial strain. Renewing the levy helps protect Taos’s healthcare safety net.

What can you do to help?

• Voice your support!
  • Talk to your friends & family about the need to support local health care
  • Write a letter of support and share it with the Taos News
    
• Vote in favor of continuing the mill levy on or before November 4th

What is a mill levy?

A mill levy is a tax rate that is charged based on the net taxable value of a property. The net taxable value value of a property is not the full appraisal value of the property, but a reduced amount. In Taos the net taxable value of a property is 1/3 of the value of a property as appraised by the county. One mill reflects $1 per $1,000 of the net taxable value of a  property in Taos County.

There are exemptions for property that is used for ‘agricultural purposes’. You can learn more and find the form you need here at the Taos County Website.

Additional Information

• This is the renewal of a mill levy that expired in 2024. Since 2016, the hospital has received funding through a 1-mill levy, which was renewed by public vote in 2020 and expired in 2024. Recognizing the continuing needs of the hospital and the growing uncertainty created by recent federal budget changes, the Taos County Commissioners voted to place a measure on the November ballot so that voters could vote to reinstate the levy – a renewal of the previous 1 mill.
  
• Funds raised by the mill levy will not be used for operations. Taos county is the fiscal agent for levy related expenditures. Taos County owns the building that Holy Cross Hospital operates out of, and funds raised by the mill levy will support facility maintenance, medical equipment upgrades and maintenance, and other capital improvements. During the last mill levy cycle Holy Cross reported capital expenditures to Taos County quarterly.

• It is very common for a county in New Mexico to have a mill levy in place to support local hospitals. Taos County has one of the lowest tax rates for healthcare related services in the state. Comparable county mill levies supporting healthcare:
  
  • Rio Arriba County
    • 4 – 4.25 mills for Hospital Operational throughout the county.
      • $3,694,316 was budgeted for Presbyterian Hospital for fiscal year 2025-2026.
      • 90% of the 4 – 4.25 mills collected is allocated to Presbyterian.
      • Rio Arriba County’s mill levy is in place for 8 years and was supported by 74% of voters.
      • There are an additional 3+ mills to support operations at La Clinica del Pueblo de Rio Arriba for tax district 19.
        
  • Colfax County
    • Over 4 mills for Hospital Operational in some districts.
    •  An additional 1.363 mills for Hospital Debt Service
      
  • Bernalillo County
    • 6.4 mills collected in most districts. In 2016, approx. $95 million annually was approved for 8 years for UNM hospital. This was renewed for another 8 years by voters in the 2024 general election.
      
• Recent federal budget changes will leave many rural hospitals in uncertain territory. Many rural hospitals already provide significant uncompensated care, and stricter federal regulations could increase the number of patients unable to cover costs due to losing coverage. Nonprofit hospitals, already operating on thin or negative margins, cannot absorb a surge in patients losing coverage. Approx. 74% of Holy Cross Hospital’s revenue comes from Medicare and Medicaid patients. If a large number of Medicaid patients lose their coverage, the hospital would face increased financial challenges.
  
• Rural hospitals across the state and country face many of the same issues as Taos.
  • Data on rural hospitals according to a 2025 Chartis study (https://www.chartis.com/insights/2025-rural-health-state-state):
    • Since 2010, 182 rural hospitals have closed or converted to non-acute models.
    • 432 rural hospitals are considered vulnerable to closure.
    • 46% of rural hospitals throughout the country are operating at a financial loss or negative operating margin.
      
  • Persisting Challenges
    • Declining reimbursement from Medicare, Medicaid, and private payers, coupled with uncertainty over the long-term effects of recent federal budget changes, is leaving hospitals unsure about the future of reimbursements.
    • High levels of uncompensated care due to uninsured and underinsured patients.
    • Workforce shortages, with health professionals moving to larger cities for higher pay and more resources.
      
  • Holy Cross Medical Center employs over 550 employees. Holy Cross Medical Center now employs more than 550 people, a reflection of its role as both a healthcare provider and one of the county’s largest employers.