Data: Gross receipts tax revenue up
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Staff writer
Gross receipts taxes in Clovis are up more than 2 percent from 2013 to 2014, according to GRT data provided by the city.
According to the data, Clovis collected $10.6 million in GRT during the first seven months of 2014 compared to $10.4 million in GRT collected in the first seven months of 2013.
“The gross receipts tax is the primary source of income for the city,” City Manager Joe Thomas said, “We base our budget projections on GRT income.”
New Mexico does not have a sales tax, but a gross receipts tax applies for most purchases. Businesses can pass the GRT on to the purchaser by stating it separately on an invoice or adding the tax to the selling price of a product or service, according to the New Mexico Taxation and Revenue website.
LeighAnn Melancon, Clovis’ finance director, said GRT trends can indicate increases and decreases in spending.
Melancon said GRT is reported two months before it is distributed to the city.
This means GRT is reported by businesses in May, collected in June, and distributed to the city in July.
Thomas said, “It (GRT) varies month to month. We’ve had some months this year that are down and some months that have been up significantly.”
Thomas said activity in the city can impact GRT.
“The biggest thing that contributes to GRT in Clovis is construction. Tax is collected on the materials used for major construction projects in the city,” said Thomas.
Thomas said events like softball tournaments and the Clovis Music Festival also help to bring GRT because of the amount of people the events attract that spend at local Clovis businesses.
