Tax hike going into effect Friday

CNJ staff

Today is the last day to purchase goods and services in the county before a gross receipts tax hike goes into effect Friday.

The tax increase — passed by the County Commission on Jan. 4 — was challenged by local residents in March when they petitioned to put the tax issue to a vote. However, the county clerk was unable to verify nearly a third of the signatures on the petition and the referendum died.

The 1/8 percent tax increase is expected to generate about $780,000 in the first fiscal year, said Personnel Director of Curry County Lance Pyle. That money will go into the County’s general fund and be used to support law enforcement.

The tax hike constitutes a 12 1/2 ¢ increase per $100 of goods bought.

Pyle said the extra tax money will go toward supporting law enforcement activities. For instance, some of the money will go toward renting space at the post office for the district attorney’s office. Some funds will be used for raises at the sheriff’s office, and the cost of housing jail inmates.

Every year afterward the tax will generate about $850,000, Pyle said. This tax will be added to three other gross receipts taxes already imposed by the county, Pyle said.