Gross receipts taxes up more than 17 percent from 2008 to 2012

By Kevin Baird
CNJ staff writer
kbaird@cnjonline.com

Clovis’ gross receipts taxes increased more than 17 percent from 2008 to 2012, according to GRT data provided by the city.

“It’s an indicator that our economy is growing and healthy,” Mayor David Lansford.

New Mexico does not have a sales tax, but has a gross receipts tax for most purchases.

Stock Image - Receipt

Stock Image – Receipt

Finance Director LeighAnn Melancon said GRT trends indicate whether there is more or less spending in Clovis.

Clovis’ GRT for the first eight months of 2013 is up 1 percent from the same time period in 2012.

“Gross receipts taxes are the bread and butter that keep the city operating,” City Manager Joe Thomas said, “As long as we’re staying within 1 or 2 percent, plus or minus, I don’t get concerned. You have to watch for trends other than what happens month to month.”

“If we’re only up 1 percent that means we’re growing slowly,” said Gene Hendricks, industrial development specialist at the Clovis Industrial Development Corp., “but we’re a lot better off than some of the other communities. If our plan had worked out with BHSI (Beauty Health and Science Innovations failed to open a cosmetics plant in Clovis) we’d be showing better growth.”

Hendricks said he is hopeful that the construction of the Tres Amigas power superstation, a project that will merge together the country’s three largest power grids, will improve the city’s GRT and its economy by bringing more people into town.

Thomas said the ongoing construction in the city has had a positive impact on GRT and the additional people in town due to the major construction projects at Cannon Air Force Base could also have a positive impact.

City of Clovis gross receipts taxes

Year Total GRT +/- %

2008 $22 million + 7.33%

2009 $21. 6 million – 1.99%

2010 $22.2 million + 2.6%

2011 $23.2 million + 4.5%

2012 $25.8 million + 11.2%

2013 $17.2 million +1

* — First eight months

Source: City of Clovis