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Think, Think, What’s Different?

Problems in the City Different:

Santa Fe city councilors are bracing for layoffs , cutbacks and amended labor negotiations in the face of two straight months of declining gross-receipts-tax revenues.

Councilors on the Finance Committee on Tuesday were dumbfounded by the news – especially because lodgers-tax revenues, reflecting tourism, are climbing.

What could the problem be?

The overall state gross-receipts-tax rate increased Jan. 1 [emphasis added] so that, in theory, the new deductions would not make any difference in the overall revenues. State officials said the March dip was caused by businesses hesitating to pay the tax while they figured out how to separate food sales from sales of taxable items.

For several months, it appeared Santa Fe’s revenues would recover. City tax revenues were up .2 percent in April, 4.8 percent in May and 10.3 percent in June. This summer , however, while Santa Fe’s gross-receipts-tax revenues began dropping, other New Mexico cities saw increases.

Ok, two important lessons here. First, everyone needs to stop calling Richardson a tax cutting Governor. He raised the anti-business gross receipts tax and state revenue went up,up, up – except for in Santa Fe. What’s different about Santa Fe than every other city in New Mexico?

Oh yeah, I remember! They are the only city to pass an inflated minimum wage ordinance. Take heed Albuquerque.