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 Author: crow
PostPosted: Sat Feb 21, 2015 1:44 pm 
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No matter how you crunch the numbers Towns are in trouble and their resident working majority are up against the wall. On the Town front the solution for maintaing at least a minimum level of services we expect is to raise the Sales Tax (GRT). Do to a level of bad management at the state legislature and the County exploiting the faulty legislation, Silver City (SC) the county seat and shopping mecca finds itself on the verge of raising the GRT to 8%, an increase of .25%.

Rumor has been that SC raised the GRT in January but not so, in reality Grant County in their greedy exploit of a loophole raised their GRT by .375% which all the municipality's residents and County residents must pay with the County getting the money.

The Problem:
When the food tax was eliminated municipalities and counties faced the loss of millions of dollars in day to day operating funds so the legislature quickly passed the "Hold Harmless" where the state gave municipalities and counties money equivalent to what they would have received had there still been a food tax; few realized that the state raised their portion of the GRT to cover the payouts.

After a couple of years the legislature decided they wanted to keep the money and began to faze out the payments to municipalities greater than 10,000 residents and counties greater than 45,000 while allowing all political subdivisions to raise their GRT by a maximum of 3/8% (.375%) to cover the loss; and there-in lies the loophole. Grant County, though not loosing a penny, immediately passed the full 3/8 th increase we saw in January and, fearing the loss of the loophole locked the increase into a 30 year bond. Silver City was furious as we faced the loss of over a million dollars a year.

The Fix
Faced with more losses of an already underfunded and understaffed infrastructure the ToSC Council gave notice that it intends to raise the Silver City GRT by 1/4th (.25%) next month and will take effect July 1, 2015. This will raise the Silver City GRT (sales tax) to 8% which is expected to be insufficient to cover the loss.

The legislature is unlikely to fix the problem though bills to do so are up for discussion in the current session. We shall see.

A Paradox
Back in November the ToSC GRT was down nearly 10% and currently is down nearly 4% yet the Lodgers Tax is up significantly.


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 Author: JoeButts
PostPosted: Sun Feb 22, 2015 7:06 am 
How did the quote go that I recently read? Something like....
"Governments are like infants. They have a voracious appetite on one end and no control on the other."
As a business owner in the county I received no notice of the county tax increase.


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 Author: curious2
PostPosted: Thu Jun 11, 2015 10:48 am 
in 1992, ( the year I started my small business ) if you owned a business ( outside Silver City, but in Grant county ) you only had to charge about 5.5% Sales tax ( or if you want to call it GRC? or GRD, to me does not matter ). That quote is right on the money. Governments are getting more expensive and less efficient. If you look around, the politicians are always the least talented of the people in the community they represent. I do not know how this happens.


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 Author: crow
PostPosted: Thu Jun 11, 2015 3:35 pm 
We can only elect from those who run, very few of any quality ever run. But, true power lies within the community and very few ever speak up as a consistent group to put and keep the pressure on.


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