State of New Mexico reaches $50 million tax dispute settlement with local governments
SANTA FE, N.M. (AP) — Local governments will get a $50 million boost to resolve a 2018 lawsuit that accused the state of botching tax distributions to 44 counties and municipalities across New Mexico.
The state Taxation and Revenue Department on Tuesday announced terms of the financial settlement on the sharing of gross receipts taxes.
Albuquerque, Santa Fe, Las Cruces, Roswell and Farmington were among the major plaintiffs to the lawsuit that alleged the state has short-changed them revenue that pays for law enforcement, fire protection and other services.
The state distributes more than $1.9 billion in revenues from gross receipts taxes to local governments each year.