A Rio Rancho lawmaker is accusing the village of Corrales of levying a new three-eighths-cent gross-receipts tax for the wrong purpose.
The cash-strapped village plans to use money generated by the increase to repair roads damaged in recent flooding and for other pressing needs, Corrales Mayor Philip Gasteyer said. The increase, approved by the Village Council in July, will raise Corrales’ tax rate to 7.54 percent at the beginning of 2014.
However, Rep. Jason Harper, R-Rio Rancho, says that’s contrary to what lawmakers had in mind last session when they authorized cities to levy an increase.
The money was meant to replace “hold-harmless” funding as the state reduces and ultimately eliminates that revenue source, he said. The hold-harmless distributions have been provided to cities and counties in exchange for their not taxing food and medicine.