Gross receipts taxes took a huge leap upward in Clovis, according to the latest figures.
The city collected more than $22 million in gross receipt taxes in 2008. That’s a 7.3 percent increase from about $20.5 million in 2007.
“We try to be relatively conservative when we budget and I wouldn't say we were anticipating another decrease, but we didn't anticipate the strong showing that we saw,” said Clovis City Manager Joe Thomas.
Gross receipt taxes are collected from business transactions such as retail sales, services and property sales in the city.
Clovis Industrial Development Corp. Executive Director Chase Gentry said the city’s economy remained strong despite the recession. Gentry attributed the city’s vitality to efforts it made to diversify its economy when Cannon Air Force Base was threatened for closure.
Collections in 2007 were down 1.21 percent from the previous year.
“I think its a good indication that we’ve been able to create jobs,” he said. “We diversified our economy and in turn the economy’s been growing until the recession hit.”
Gentry said the arrival of personnel at Cannon Air Force Base further bolstered the local economy.
Thomas said there is no information on whether any one sector of the local economy contributed to the increase. But he said the conservative lending habits of local banks had a hand in the increase.
“I think that it just shows that Clovis has a strong economy and we're continuing to see construction and other major purchases continuing at a normal pace,” he said.
However, Thomas said the city will be cautious this year as the nation’s economy may start having an effect locally.
Clovis: 7.4375 percent
Grady: 6.5625 percent
Melrose: 7.125 percent
Texico: 7.1875 percent
Curry County: 5.75 percent
Source: New Mexico Taxation and Revenue Department
Gross reciept tax five-year history
History of Gross Receipt Tax:
2004: $17.5 million
2005: $20 million
2006: $20.8 million
2007: $20.6 million
2008: $22 million
Source: City of Clovis