Hobbs · issues
Civic issues
Topics getting the most attention in Hobbs public meetings, ranked by how frequently they come up.
HB 6 revenue losses
State tax law changes shifted gross receipts taxation from business location to delivery destination, costing Hobbs an estimated $15-20 million a year — and over $50 million in a single boom year. Eight of Hobbs' top ten GRT producers were oil and gas companies the city no longer taxes directly.
Proposed Gross Receipts Tax Increase
The city is exploring a gross receipts tax increase as a way to secure its long-term financial health. Because gross receipts taxes are built into prices, residents and businesses could see higher costs if it's eventually adopted. No decision has been made — this was a discussion-only work session.
$14.25M Lea County infrastructure grant
Lea County is giving Hobbs $14.25 million for roads, water and sewer lines, hydrants, and drainage. That's real money that takes pressure off the city's general fund, freeing local dollars for pay and services. Funds must be spent by June 30, 2028.
Fiscal Year 2026-2027 Preliminary Budget
The city locked in its spending plan for the year starting July 1, with a 38% general fund reserve and $2.4 million shifted from the cannabis fund. A resident urged commissioners to balance the budget without raising the gross receipts tax.