Las Cruces To Sue State Agency Over Tax Rejection

Oct 21, 2013

Las Cruces intends to sue a state agency over its rejection of a planned increase in the southern New Mexico city's sales tax.

The Las Cruces Sun-News reports that Mayor Ken Miyagishima disclosed the intention to sue following a closed-door City Council meeting law week.

At issue is the state Taxation and Revenue Department's finding that a Sept. 3 tax increase approved by the City Council doesn't conform to requirements of state law.

City officials want the increase of three-eighths of 1 percent to begin Jan. 1 in order to collect $4.4 million during the fiscal year's second half.

The increase was passed to offset anticipated losses in state stipends as a result of legislative action earlier this year.

Information from: Las Cruces Sun-News.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.