NM Pays City For Tax Error

New Mexico – The state is returning $1.1 million to the city of Bloomfield for nearly five years of erroneous payments.

The northwest New Mexico city was underpaid for years by the state under a program which compensates cities for untaxed grocery items sold within city limits.

The problem was found and fixed.

City Manager Keith Johnson said a significant portion of the returned cash should be set aside.

The money arrives at a time when Bloomfield was considering roughly $400,000 in potential budget cuts.


Information from: The Daily Times,

Copyright 2009 The Associated Press.