NM Governor Says Tax Increase Is Coming

New Mexico – Gov. Bill Richardson says he expects taxes to be increased next year to deal with the state's continuing budget problems.

Richardson said at a news conference on Monday "it's inevitable" that taxes will be raised to provide additional revenues for government operations.

The Democratic governor did not speculate on what tax measures are likely to win approval in the Legislature. In the past, Richardson has opposed tax increases such as repealing personal income tax cuts enacted in 2003.

The governor plans to appoint a group of state officials, business leaders and others to study tax proposals that could be considered during the 2010 Legislature. Tax bills were excluded from last month's special session, which approved a deficit reduction package.

Copyright 2009 The Associated Press.