Talon News - Good Local News

By Jacque Ritchie
TALON 

AZTEC BUSINESS UP OVER 8%!

 

November 2, 2018

AZTEC BUSINESS UP OVER 8%!

by Jacque Ritchie, TALON

A recent Gross Receipts Tax (GRT) Distribution update released by the City of Aztec reveals it's good news for local businesses and the Aztec economy as a whole. Director of Community Development Steve Saavedra told TALON, "The future remains steady, we have seen some new businesses like the Alien Bike Shop coming in and they seem to be doing well." Saavedra said, existing businesses are stepping up their game, like Aztec Hardware has, with new management, a new location and more inventory, "We are cautiously optimistic going forward."

The U.S. fiscal year (FY) starts October 1, and ends September 30. So, FY 2019 actually began on October 1, 2018. The reason for this, according to http://www.thebalance.com is, "...newly elected officials can participate in the budget process for their first year in office."

The GRT or Gross Excise Tax is the tax levied on companies and businesses on their total gross revenues, regardless of the source. The GRT is similar to a sales tax only instead of the consumer paying, it's the seller of goods and services that picks up the tab. In Aztec the GRT rate is holding at 8 percent (since 2015) and contributes to a sizable chunk of the city's annual revenue. According to city sources GRT money's contribute, on average, 46 percent of the General Fund's total revenue. The general fund is the primary funding source for all governmental services from the police and fire to the senior center, the library and the parks. While small business owners may find the tax hard to swallow, city officials could argue, that, that eight cents on the dollar helps to make Aztec an awesome place to live.

The following is a breakdown comparing GRT revenues from FY 18 and FY 19 for the month of October: Accommodation & Food sales saw a marked increase to over $50,000 in October, FY19 from $35,000 in the same month in FY18. FY19 GRT revenue for Groceries stayed level from FY18 at $40,000 as did the Gasoline Tax hovering around $16,000. Health Care and Medical Distribution saw a small decrease in revenue with FY19 bringing in just under $20,000 in revenue while FY18 saw just over 20K. The Lodgers Tax for the month of October remained low for both FY18 and FY19 hovering around $1,000. Construction saw a big decrease in revenue from $30,000 in October, FY18 to just under $10,000 for FY19. In an unexpected uptick Mining GRT revenue went up, from $10,000 in FY18 to over $20,000 in October of FY19. Mining GRT revenue is still well below the FY15 numbers of around $31,000 . The bright spot in the report was Retail GRT revenue hitting almost $80,000 in October FY19 well over the $35,000 mark in FY18.

So the takeaway here is that according to available data to date, Aztec is looking at a 8.3 percent increase GRT revenue from FY18 to FY19. According to the math, when averaging GRT totals from November of FY17 to October FY17 and the same 12 month period in FY18 their is a $338,225 or 9.5 percent increase in revenue. These numbers represent a healthy economic upswing in certain industries, while other business have seen a more modest up-tick or steady leveling off, and still others have trended down.

According to the City of Aztec: Amounts are based on when revenues are received by the city; tax payers may submit late to the state or the state may experience delays in distributing funds to the city resulting in no receipts or unusual spikes or dips on the graphs.

 

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