Freedom New Mexico
Elida voters on Tuesday will decide whether to implement an additional gross receipts tax for economic development and municipal infrastructure.
The municipal election ballot contains a question about whether to implement the tax of one-sixteenth of 1 percent, or a penny on every $16. If passed, the tax would go into effect July 1, said Elida City Clerk Sandra Monks.
Roosevelt County Community Development Corp. Executive Director Greg Fisher said the tax would come in addition to the gross receipts tax already in place. Sellers pay a percentage of the money they take in on many goods, services and leases, and typically pass on the cost to customers.
Fisher said there are exempt or deducted items, including some food, prescription drugs and construction materials sold to builders.
Most of the revenue for the tax would come from the local Allsup’s, Monks said, so people passing through town would be paying it.
“Most of the people in Elida pay their taxes in Portales because that’s where they shop,” Monks said.
She said Fisher told the town council about the tax, which could provide money to pay for incentives to attract businesses to Elida.
“Of course, it’ll take years before it builds up enough to do anything like that,” Monks said.
Town leaders have no specific plans for the money from the gross receipts tax, but are just trying to start building a pot of money for the future, she said. Fisher said municipalities must follow strict state guidelines in determining what projects get the revenue.