Las Cruces to sue state agency over tax rejection

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LAS CRUCES, N.M. (AP) — 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.

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