Hobbs commission votes 5-2 to publish proposed gross receipts tax increase for public comment

The Hobbs City Commission voted 5 in favor and 2 opposed to publish a proposed ordinance that would raise the municipal gross receipts tax from 6.5625% to 7.175%, beginning the public comment process ahead of a final adoption vote at a later meeting. Assistant City Manager Todd Bridal told the commission the increase of 0.6125 percentage points "is intended to help address the rising costs associated with public safety, infrastructure, streets, quality of life initiatives, and capital improvement projects."

Bridal and City Manager Manny Gomez said the staff estimate is that the change would generate "approximately $14,700,000 in additional annual revenue for the city's general fund." City staff illustrated the effect with a $100 example — the tax on a $100 purchase would rise by roughly 61 cents, from about $6.56 to about $7.18. Commissioners and staff repeatedly cited revenue reductions tied to state policy changes as a driver for the proposal; commissioners emphasized accountability for how additional funds would be spent.

Opponents said the commission should exhaust further spending cuts or revenue options before asking residents to pay more. "I am not an advocate of raising taxes on the people," one commissioner said, noting personal concern about taxation and urging further budget trimming. Supporters argued deferred maintenance, public-safety staffing and infrastructure require recurring revenue to avoid deeper cuts later.

Publication was approved, moving the ordinance into a community engagement phase; the commission noted the measure would return for a final adoption vote after public input. The staff presentation included projected revenue allocations and a proposed effective date of July 1, 2027 if ultimately adopted.