Clovis officials to make decision on tax hike

CLOVIS — The Clovis city commission will decide on a potential tax hike locally Thursday, while asking the state to consider lowering another tax in a few months.

The commission will consider final approval of Ordinance 2127-2019 to amend a .25% gross receipts tax dedication from police and fire services to one of three possibilities:

• Financing $15 million for construction that represents the city’s share of the Eastern New Mexico Rural Water System’s interim groundwater project

• Payment of bonds toward $15 million for the aforementioned construction

• Any other lawful purpose.

The meeting will be 5:15 p.m. at the North Annex of the Clovis-Carver Public Library.

The amendment would be effective either July 1, 2020, or Jan. 1, 2021, depending on when the city submits the ordinance to the state taxation and revenue department.

The commission has given tentative approval to a property tax increase of $51.80 annually per $100,000 in commercial or residential property. That tax increase would fill in the funding gap for police and fire created by the gross receipts tax rededication.

The property tax was approved, contingent on the state and federal governments providing their share of the interim groundwater project’s costs — $30 million from the state, $40 million from federal government. It would not be implemented locally until or unless both of those awards are made.

Ordinance 2127-2019, as currently written, does not address the related property tax actions.

The commission will also consider a resolution, requested by Think New Mexico, to urge the New Mexico Legislature to repeal state taxes on Social Security benefits. The state is one of 13 that taxes those benefits to the tune of about $700 annually, according to the think tank.

Other items on the Thursday agenda include:

• A 4:45 p.m. executive session to discuss personnel matters.

• Requests for the city to act as fiscal agent for Clovis MainStreet and the Food Bank of Eastern New Mexico for the upcoming state legislative session.

• An ordinance to amend the uniform traffic ordinance to align with state standards.

• A proclamation to mark Dec. 14 as Wreaths Across America Day.