Uneven gross receipts tax revenue collections did not deter approval of an interim spending plan for fiscal year 2023 for the City of Carlsbad.
Tuesday night Carlsbad City Councilor’s approved the new fiscal year budget that starts July 1.
The City projected $112.5 million in revenue for 2023. City of Carlsbad Finance Director Melissa Salcido said the revenue was $7.7 million higher than the forecasted revenue for 2022.
Salcido said budget crafters did not anticipate reductions or increases for gross receipts taxes (GRTs) in 2023.
GRTs in New Mexico are the total amount of money collected on property or business transactions conducted in the state, per the New Mexico Taxation and Revenue Department website.
“What’s hurting us now is our GRT. Due to some of the changes Santa Fe. It’s affected us more than we thought it might,” said Ward 2 City Councilor JJ Chavez.
During the 2022 New Mexico Legislative Session, The City of Carlsbad supported two senate bills that died during the session.
Senate Bill 136 (SB-136) would have allowed the City to collect GRTs to meet obligations for city services.
Senate Bill 137 (SB-137) would have provided a distribution of certain New Mexico GRTs imposed on certain services and required reporting location of seller during GRT. The proposed legislation was sponsored by Kernan and Roberto “Bobby” Gonzales (D-6).
Carlsbad Mayor Dale Janway said both bills would have corrected fiscal impacts of House Bill 6, which passed the New Mexico Legislature three years ago.
The bill changed a multitude of tax codes in New Mexico including destination-based sourcing.
The bill required destination-based sourcing sellers in New Mexico to collect GRT based on location where the goods or the product of their services are delivered including all local option taxes, read part of the legislation.
The City of Carlsbad anticipated increased labor and operating costs during the upcoming fiscal year and seven projects started in 2022 were expected to extend in 2023 and eight new projects were budgeted for the upcoming fiscal year, read a memo from Salcido and City Administrator John Lowe to City Council.
Sign up for our newsletter, the Daily Briefing, to get stories like this one delivered straight to your inbox every morning. https://profile.currentargus.com/newsletters/daily-briefing/