Another tax hike planned

The Curry County Commission is expected to increase the gross-receipts tax today, just four days after state and county hikes took effect.

Commissioners will vote on an ordinance that would increase the gross-receipts tax by 1/8 percent beginning July 1. Officials estimate the impact to be between $700,000 and $900,000 for the county’s general fund.

Last month commissioners announced their intent to pass the ordinance, citing budget constraints mainly stemming from jail overcrowding.

“I don’t see how we could even come close to balancing our budget in light of our expenditures right now without the increase,” Commissioner Pete Hulder said.

The hike would compound 1/2-percent state and 3/16-percent county increases, which took effect Jan. 1.

The state passed its increase in February to offset revenues lost from the food tax elimination. In May the county passed a 1/8 percent increase to fund the correctional facility and 1/16-percent general increase.

If today’s increase is approved, gross-receipts tax in Curry County would move to 7.4375 percent.

“I think it is real unfortunate the state did their thing right at the same time,” Commissioner Tim Ashley said. “I think the community understands the need for additional revenue.”

Residents will have a chance to voice their opinions about the possible tax increase at a public hearing prior to the vote.

The possible increase falls under a “negative referendum,” meaning the Commission does not have to place it on a ballot before enacting it. However, state law provides a means for citizens to get the issue to a vote.

According to state statute, county residents have until 60 days after the ordinance is enacted to petition for a vote. At least 5 percent of county voters registered in the last General Election must sign the petition. Curry County would need 1,071 signatures.

“It has happened, but I can’t say how common that is,” said Diane Lang, research and communications director with the New Mexico Municipal League.

Commissioners hope the tax increase bails them out of the budget deadlock they say is a result of having to house more than 180 inmates in Texas jails for about $35 per day for each inmate.

“The expense side is totally out of our hand, it is up to us to pay the bills but we have no say in the expenses,” Ashley said. “When you are talking about jails, that is up to the criminal population and the courts.”

Commissioner Albin Smith said county officials can only estimate how many inmates will crowd the jail in the future, but he believes a tax increase will stabilize the budget.

“If you would have asked me before I got this job if I was in favor of raising taxes, I would have said no,” Smith said. “Today my opinion is still the same, but we don’t have much choice.”

Curry County Commission Meeting

Time: 9 a.m.

When: Today

Place: Curry County Courthouse