The New Mexico Court of Appeals has upheld a ruling that effectively shields cities and counties from losing money because of tax errors made by taxpayers.
The panel issued its decision Tuesday, affirming an earlier ruling from Lea County District Court.
Judge Linda Vanzi wrote the New Mexico Taxation and Revenue Department can only recover gross receipts taxes that were incorrectly paid within a year of their distribution.
Department spokesman S.U. Mahesh says the agency is evaluating potential ramifications of the opinion.
The case stems from a business that discovered in 2012 it was erroneously paying taxes to the city of Eunice instead of the county.
The state reimbursed the business in January 2013 and requested more than $2 million in repayment from the city.
Information from: Albuquerque Journal, http://www.abqjournal.com
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