(Deming) – The Deming City Councilors Thursday morning postponed a decision on increasing the city’s gross receipts tax.
The councilors were considering increasing the sales tax by up to three-eighths of one-percent to offset the impending phase-out of state funds that have been compensating the city since 2005 when taxes on food and medical distributions in New Mexico ceased being collected.
The council voted three-to-one during a special session to postpone a vote on the tax increase, allowing staff time to further examine the issue.
Councilor David Sanchez was the dissenting vote.
One issue in play is a move in the New Mexico Legislature to postpone or eliminate the phase-out of the so-called “Hold Harmless” or “Food Tax Fix” monies.
The New Mexico Municipal League, for example, is lobbying for changes in the phase-out, and asking for an additional distribution in places where the local option “Hold Harmless” gross receipts tax does not generate enough revenue to equal the current “Hold Harmless” distribution.
City Administrator Aaron Sera has said Deming is one of those places.
If no legislative action is taken, however, the phase-out will begin July 1st.
The councilors were considering increasing the sales tax by up to three-eighths of one-percent to offset the impending phase-out of state funds that have been compensating the city since 2005 when taxes on food and medical distributions in New Mexico ceased being collected.
The council voted three-to-one during a special session to postpone a vote on the tax increase, allowing staff time to further examine the issue.
Councilor David Sanchez was the dissenting vote.
One issue in play is a move in the New Mexico Legislature to postpone or eliminate the phase-out of the so-called “Hold Harmless” or “Food Tax Fix” monies.
The New Mexico Municipal League, for example, is lobbying for changes in the phase-out, and asking for an additional distribution in places where the local option “Hold Harmless” gross receipts tax does not generate enough revenue to equal the current “Hold Harmless” distribution.
City Administrator Aaron Sera has said Deming is one of those places.
If no legislative action is taken, however, the phase-out will begin July 1st.
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