Hobbs City Commissioner Says City May Lose Money Due To Tax Law
HOBBS, N.M. — A southeastern New Mexico municipal official says a state tax law is resulting in an unintended loss of gross receipts tax revenue for their community.
The measure passed by the New Mexico Legislature and enthusiastically signed by Gov. Michelle Lujan Grisham in 2019 included complex changes to state tax laws. Among other things, it was billed as a way to help communities by requiring companies to pay gross receipt tax where services are provided rather than where the companies are located.
Hobbs City Commissioner Dwayne Penick says the city could possibly be looking at losing $20,000 to $25,000 a month because of the destination tax.