New Mexico county could lose millions with proposed food tax

May 18, 2017 • State News

AZTEC, N.M. (AP) — Officials in San Juan County say the outcome of an upcoming special legislative session could force drastic changes in the county’s own budget.

The Daily Times reported ( Wednesday that County [auth] Commission Chairman Jack Fortner says the county’s budget will be contingent on what lawmakers and the governor do next week.

Legislators will be discussing so-called hold harmless payments, which are given to local governments in place of food tax revenue.

Gov. Susana Martinez has considered bringing back a food tax, which would eliminate the need for the hold harmless payments.

County Executive Officer Kim Carpenter says the county could lose $2 million if the move goes through. He says there are contingency plans in the works if the payments end and the county is unable to collect food tax.

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