Curry to consider tax cut

CLOVIS — The Curry County Commission is considering a tax cut.

“It’s a rare opportunity,” said Commission Vice Chairman Seth Martin.

“More times than not they end up re-allocating funds to another program or use and I think this gives us the opportunity to show how serious we are about promoting business and growth in the county for all residents.

“It may not be a huge reduction, but it will save our residents an extra bit of their hard-earned money.”

The 0.1250 percent Environmental Services Gross Receipts Tax was put in place in 1991. But with recent developments at the county and state level, County Manager Lance Pyle told commissioners it might be time for the tax to go.

Pyle said changes at the 2019 legislative session gave counties more leeway on how GRT funds are allocated and gave the option to change where funds generated by several long-standing taxes go. The change would allow the commission to either rescind the environmental service GRT completely or re-allocate to other projects in the county.

The commission’s recent decision to withdraw from the Eastern New Mexico Water Utility Authority and the approval of alcohol sales in the unincorporated parts of the county have also provided some incentives to do away with the tax, Pyle said.

“This would be a benefit for any business, construction or citizen in the unincorporated areas of the county,” Pyle said. “Anything in those areas will pay a lower tax rate from this.”

If rescinded, the county GRT rate will be lowered to 6 percent for those unincorporated areas, which will save organizations like the ENMWUA and its members funds by lowering the tax rate on construction projects.

Pyle said removing the tax would also show potential investors that the county is business friendly with a lower GRT rate for any prospective businesses, construction projects and county residents in the unincorporated areas.

Simply getting rid of the tax isn’t the county’s only option, however. Pyle said the tax could instead be re-allocated to fund the road department for operations costs and improvements to county roads, be put toward the Curry County Courthouse renovation project or even another project.

If the county does make a change, there are some expenses that the environmental services GRT currently covers that will need to be taken care of.

The tax currently supports the county’s water and waste expenses, primarily paying for a water and sewer contract the county has with the city of Clovis. Funds from the tax also went toward the county’s contributions to the ENMWUA before withdrawing in November.

If the tax is rescinded or re-allocated, the funds from those expenses would come out of the county’s general fund, which Pyle believes will be able to cover without any issues.

Pyle presented the Curry County Commission with these options during its first meeting of the year Tuesday, adding that the tax cut could take effect on July 1 if approved by the committee on or before its March 12 meeting.

Members of the commission suggested holding a public hearing before making a decision. Rescinding the tax could be done at any time without a hearing, while re-allocating it would require one before being approved.

Martin said he was optimistic about rescinding the tax, though he and the rest of the commission would like to look into the matter more before coming to a decision.