LAS CRUCES, N.M. — Las Cruces City Council met in an emergency meeting Wednesday morning to address the gross receipts tax increase that was not approved by the state on what appears to be a technicality.
Last Friday the city received a letter from the taxation and revenue department that said the ordinance to raise taxes by 3/8 of a percent does not conform with the law.
"Today's ordinance doesn't repeal the first one but this one here is correcting what they feel should have been corrected in the first time," said Mayor Ken Miyagishima.
In the letter, the issue is with four words on the ordinance that emphasize "food and medicine exemption" which are already non-taxable items.
Miyagishima is asking the state office to show documentation on where they contacted the city to make corrections to the ordinance.
Wednesday morning council voted 5 to 1 with Councilor Miguel Silva voting no on a new ordinance that removes the wording in question.
Due to ordinance deadlines if the first ordinance is not approved, the city could lose more than $4.4 million with the potential for more over a 20-year period.
City leaders will meet in closed session to discuss other options to have the first ordinance approved.