Clovis to look at ordinance to adopt gross receipts tax

CLOVIS — The Clovis city commission will take a first look Thursday at an ordinance to adopt a gross receipts tax to partially offset “hold harmless” losses.

A one-eighth of 1 percent increase would take effect July 1 if adopted before the end of the month, or Jan. 1 if adopted after March 31.

The city’s gross receipt tax rate is now 8.0625 percent.

Hold harmless, eliminated in the 2013 state legislative session, was a provision by which the state paid municipalities for lost revenues from the 2005 elimination of food and prescription drugs from gross receipts tax collection.

As a condition of the waiver, municipalities are allowed to implement three “one-eighth” increments. This would be the first increment for the city, and requires a vote to introduce the ordinance and a later vote to adopt it.

The extra tax is expected to raise $960,000 annually. Clovis’ losses are expected to reach $24 million over the next 14 years from the waiver, and the city is one of 10 municipalities that would not be made whole with all three increments in place.

In other business on the commission agenda:

• The meeting will be preceded by a 4:30 p.m. executive session to discuss acquisition or disposal of property and/or water rights.

• A report is scheduled regarding a Jan. 13 Travis Tritt concert and the $10,000 disbursement from the lodger’s tax fund to help promote it.

The concert, held at the Curry County Events Center, had 1,095 people attend. However, 435 of them took advantage of free tickets offered to Clovis firefighters, police and sheriff’s officers and to military personnel.

The commission voted in December on the disbursement. It did not go through the lodger’s tax advisory board due to the concert’s confirmation falling after the board’s quarterly meeting.

• A pair of resolutions opposing pending state legislation.

One is against Senate Bill 394, which would curtail the city’s ability to offer industrial revenue bonds within 15 miles of the city limits as an economic recruiting tool. Those bonds helped the city first land the Southwest Cheese plant.

The other opposes House Bill 174, which would put municipal, school board, community college, conservation and other district elections under the control of county clerk’s offices. It would also require those entities to pay the secretary of state’s office, which would then reimburse the clerk offices for what it considers reasonable election expenses.

• Several resolutions to participate in a capital outlay program with the state Department of Transportation.

The resolutions include $285,000 for improvements to Seventh Street from Norris Street to the Ingram Channel, $363,125 for an all-weather road on Curry County Road I and $125,000 for road improvements at Clovis Municipal Airport.

The city would cover any overages on each project.

• A waiver of zoo admission fees 9 a.m.-noon following the city’s April 15 Easter egg hunt at Guy Leeder Softball Complex. The zoo saw 581 patrons last year during the free admission period.

• Permission for the district attorney’s office to hold its annual 5K fun run at 9:30 a.m. April 8 inside Hillcrest Park. The office has liability insurance and plans to clean the park area it will use.