A tax hike in the cities of Santa Fe and Espanola appears more likely to take effect this week.
The Santa Fe New Mexican reports that a judge late last week denied both cities' request for a temporary restraining order halting the tax increase.
However, First District Judge Sarah Singleton allowed a lawsuit initiated by the cities against Santa Fe County to move forward.
The cities are suing the county over a decision to raise its gross-receipts tax by one-eighth of a percentage point, a move that is supposed to start Wednesday.
Lawmakers approved a 2013 state tax package that allows local governments to impose a higher gross-receipts tax rate within their jurisdictions.
The two cities say county ordinances should only apply to unincorporated areas belonging to the county.
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Information from: The Santa Fe New Mexican.
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