LAS CRUCES, N.M. (AP) — Shoppers in Las Cruces will pay a slightly higher sales tax on many purchases as a result of the City Council’s action responding to the state’s decision earlier this year to reduce payments to local governments.
The Las Cruces Sun-News (http://bit.ly/1fy46V5 ) reports that the increase of .38 of 1 percent of the city’s gross receipt tax amounts to an additional 4 cents tax on $10 of purchases. Purchases for food, medicine and some medical services are excluded.
The increase begins Jan. 1, and city officials estimate that the city will collect nearly $4.5 million in additional tax revenue during the final six months of the current fiscal year.
Mayor Ken Miyagishima says Las Cruces had to raise its sales tax as a result of the state’s action.