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Ramah water district reports backhoe outage, clarifies tax treatment for bulk water sales
Summary
The Ramah Water and Sanitation District discussed a backhoe repair that could limit grave-digging capacity, outlined responsibilities for a nearby Dollar General water hookup and said staff will change billing accounts after New Mexico tax guidance on governmental gross receipts taxes (GGR).
The Ramah Water and Sanitation District learned at its June 10 meeting that a vehicle repair could limit the district’s capacity to dig graves and perform some maintenance while staff also moved to clarify which services require New Mexico governmental gross receipts (GGR) tax.
Operator Flint Tietjen told the board the backhoe cylinders were removed for repair and that repairs could take about two weeks; he said the district currently has no backup backhoe and ‘‘will ask a community member if we could rent or borrow their backhoe if we need to dig a grave.’’ The operator said the district will seek a temporary local solution to avoid delays in time-sensitive work.
Tietjen also reported that dirt-work contractors building the new Dollar General bought bulk water from the district. Because the district’s only water line is on the opposite side of the highway from the Dollar General site, the operator said the store will need to run a water pipe under the highway, secure permits and pay for the new service connection; the district will install a meter on the north side and charge a sewage activation fee if the store ties into the nearby sewer line.
Separately, the secretary reported that McKinley County denied several recently filed property tax-exemption requests for district-owned parcels while other district properties remain exempt. The secretary said she contacted the New Mexico tax office to clarify which district charges require GGR tax and was told schools and government agencies are exempt for tangible water sales but not for sewage or maintenance fees; she said staff will reconfigure billing accounts with support from their billing software vendor to collect and remit the correct taxes.
Board members were informed that beginning financial information for the fiscal year was sent to High Desert for the FY25 audit and that communications with the audit firm are proceeding. The district also received a late NMDOT grant notice; board members agreed to place the NMDOT grant resolution on the July agenda because it arrived too late to be considered at the June meeting.
The board did not take additional action on the backhoe repair beyond the operator’s contingency plan and directed staff to proceed with the billing-account changes needed to comply with the tax guidance.
