Committee backs bill to return some gross receipts tax revenue to municipalities and counties

Representative (speaker 5) introduced House Bill 160 as a fix to HB6 (2019), which moved gross receipts taxes (GRT) to the location of service rather than the business and, the sponsor said, resulted in an estimated $13,000,000 annual loss to oil-producing municipalities such as Hobbs and Carlsbad. “This bill seeks to transfer a portion of the gross receipt tax revenue back to municipalities and counties,” the sponsor said, framing the measure as an equitable way to restore money used for infrastructure, housing and after-school programming.

Representative Henry, a cosponsor who identified himself as mayor of Artesia, told the committee he has seen the impact locally and said losing GRT creates “a huge hole” in municipal budgets that affects police, fire and other services. Todd Randall, assistant city manager for Hobbs, testified the proposal strengthens revenue sharing “where state policy meets real life.” Business and local-government groups testified in support: Ashley Wagner of the New Mexico Oil and Gas Association and Lisonbee Nichols of the New Mexico Municipal League urged the committee to back the bill as a way to stabilize funding for cities and counties.

Representative Borrego asked for jurisdiction-level dollar estimates. The sponsor said HB160 contains a formula that allocates funds based on population and GRT fund balances and pointed to the bill text (page 2) for the specific formula, noting the allocation would vary with GRT receipts. After questions and discussion the committee moved and voted to recommend HB160 ‘do pass.’ The clerk recorded the roll call and the chair announced the committee’s recommendation.

The committee action forwards HB160 to the full House with a committee recommendation. The bill’s fiscal-implication details by city were not produced during the hearing; sponsors said the formula in the bill determines individual allocations rather than listing fixed sums.