Council guards against state tax raid

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Legislature urged not to alter gross receipts tax statutes

By The Staff

County councilors paid heed to budget rumbling from the Legislature in Santa Fe. In a unanimous vote, the council passed a resolution Tuesday to oppose any attempt to reduce the county’s share of the Gross Receipts Tax.

According to one scenario, the county could lose some $1,566,700 annually to the state and statewide local governments could lose an estimated $120,953,127.

“I can tell you the legislature is busy at work finding ways to deal with the state’s budget gap,” County Administrator Tony Motillaro said. He said a bill had just been introduced that raised the state GRT rate from 5 percent to 5.5 percent, while restricting the counties from raising their rates.

Before the meeting, Council Vice Chair Sharon Stover, who did not attend, said that the county was encouraged to take the matter up by the N.M. Association of Counties.

“It’s a huge issue for the Municipal League and the number one priority for the association,” she said.

In its Legislative Bulletin for

Jan. 22, the Municipal League termed the $600 million dollar budget shortfall, “the 600 pound gorilla budget issue.”

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