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Mayor: HB6’s destination-based sales rule costing Hobbs an estimated $10–15 million a year
Summary
City officials told the Hobbs City Commission that the 2023 change from origin- to destination-based gross receipts taxation (HB6) has shifted oilfield service revenue away from the City, costing Hobbs an estimated $10–15 million annually and prompting continued state-level advocacy.
Mayor Brandon Cobb and city staff told the City Commission on Feb. 18 that a 2023 change to the state’s gross receipts taxation — commonly referred to as HB6 — has moved substantial oilfield service revenue away from the City of Hobbs.
The mayor said the city previously received gross receipted tax (GRT) proceeds from service work performed by Hobbs-domiciled businesses even when that work occurred outside city limits; under the destination-based system, those receipts now often go to other counties or the state. “In my estimate, it's costing us anywhere from 10 to $15,000,000 a year in lost revenue,”…
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