- Associated Press - Wednesday, September 17, 2014

HOBBS, N.M. (AP) - The city of Hobbs has broken another gross receipts tax record.

The booming eastern New Mexico oil and gas town reported $7.87 million in gross receipts tax from July business activity, the Hobbs News-Sun reports (https://goo.gl/UMqbhK).

That amount breaks the previous record of $7.3 million set a month before.

Gross receipts are defined by the state as the total amount of money businesses receive through selling or leasing of property or goods in New Mexico, or through performance of services.

It is the fifth time in the past two fiscal years that Hobbs has collected more than $7 million in GRT revenues.

“When we get news that the GRT numbers have once again increased, we can’t help but be excited about the positive conclusions that can be drawn from this,” Hobbs City Manager J.J. Murphy said.

The state Taxation and Revenue Department reported there was $383 million of gross receipts in Hobbs across all industries in July, and 35 percent is directly attributable to oil and gas.

While the growth is mostly due to the increased business from the oil and gas industry, city officials believe there is something to be said of the other sectors of business in Hobbs.

“We are seeing growth in a broad array of services and industries that are Hobbs based businesses,” Mayor Sam Cobb said.

Cobb said efforts were underway to diversify to economy in the Hobbs and Lea County.

“From a finance perspective, Hobbs continually has record-setting gross receipts tax due to the economic activity as it relates to increased capacity for labor, construction and services,” Hobbs Finance Director Toby Spears said. “The first quarter of this fiscal year shows the city is trending higher from the previous year.”

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