The New Mexico Legislature's decision to phase out state reimbursements to local governments for not taxing food and medicine could lead some city and county governments to raise taxes.
The plan adopted by the Legislature on March 16 will require large and mid-sized city and county governments starting in 2016 to accept a payout between 6 percent and 7 percent smaller each year until the state's "hold harmless" subsidies for the food and medicine taxes are entirely eliminated by 2030.
Some local governments say that tax hike may be needed.
Local government officials say the lost state money adds new financial pressure to local budgets already strained by earlier cuts needed to weather years of economic recession.
Information from: Albuquerque Journal, http://www.abqjournal.com
Copyright 2013 The Associated Press.