The Las Cruces City Council again voted Wednesday to increase the city's gross receipts tax by three-eighths of one percent. That amounts to about four cents on a ten dollar purchase. The council voted 5-1 for the tax increase, which will take effect on January 1. Councilor Miguel Silva was the lone "no" vote and Councilor Sharon Thomas was absent.
The council had already voted to approve the GRT increase last month, but the state contended the wording of the original legislation needed to be adjusted.
Councilors voting "yes" said the tax increase was needed due to a reduction in state tax revenue. The state legislature voted to remove the so-called "hold harmless" provision over a period of years. The move was part of a last-minute bill that reduced corporate taxes in New Mexico.