Some good economic news in Las Cruces.
Gross Receipts Tax revenue was up nearly three percent (2.76%) compared with May of last year.
The city says this marks the sixth month revenue exceeded the same period in the preceding year.
For this fiscal year-to-date, GRT revenue is up nearly two percent (1.7%). It’s important to note these numbers do NOT include the hold harmless gross receipts tax increase implemented by the city. If you include that increase, GRT revenue is up nearly 11 percent (10.9%) in the current fiscal year.
The GRT revenue increases are important to note…because these numbers represent one objective assessment of economic conditions.
On July 13th….the city council is scheduled to hold a work session on the local economy. That was motivated by a stated desire to discuss the impact of the new Las Cruces minimum wage law. Supporters of the minimum wage increase noted studies that said low-income workers tend to spend everything they make…in that sense, the GRT revenue increase does not seem surprising.
City manager Robert Garza tells KRWG the work session will include information from a University of New Mexico study assessing the local economy. However, Garza says the UNM assessment does not include a study of the minimum wage.