Tax revenue approximately $820k less than budgeted

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AZTEC — San Juan County has frozen all unnecessary purchases for the time being as it looks at the possibility of ending fiscal year 2019 with a $3.2 million deficit.

County finance director Jim Cox alerted the County Commission to the possibility during a meeting Tuesday evening.

Gross receipts tax revenue makes up the majority of the county’s budget. Cox said San Juan County’s gross receipts tax revenue during the first quarter of fiscal year 2019 has been about $818,000 less than budgeted. The county had based its budget for fiscal year 2019 off of the fiscal year 2018 gross receipts tax revenue.

Cox said he is not certain what is causing the county’s gross receipts tax revenue to dip significantly below last year’s levels. He said the county is in talks with state tax officials to determine the cause.

County Executive Officer Kim Carpenter said if the gross receipts tax revenue continues to be significantly below the budgeted levels, the county may have to leave vacant positions unfilled.

Cox said some other local areas have not seen severe reductions in gross receipts tax revenue.

While Farmington saw a decrease in that tax revenue, Aztec and Bloomfield saw an increase, according to the New Mexico Taxation and Revenue Department. Kirtland’s gross receipts tax revenue remained approximately the same as the fiscal year 2018 levels.

Farmington’s tax revenue decrease was not as severe as the county’s decrease. According to numbers from the state Taxation and Revenue Department, Farmington saw about $168,000 less during the first quarter of fiscal year 2019 than it did during the same period in fiscal year 2018.

Hannah Grover covers government for The Daily Times. She can be reached at 505-564-4652 or via email at hgrover@daily-times.com.

 

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