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New Mexico tax law unintentionally cuts into city revenues

KVIA

HOBBS, N.M. (AP) — A southeastern New Mexico city is pushing to amend a state law that municipal officials say 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.

Associated Press

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