Las Cruces City Council held an emergency meeting Wednesday morning to change its new gross receipts tax ordinance to avoid losing millions of dollars.
State officials told City Council that its gross receipts tax ordinance was worded wrong and if the wording wasn’t corrected in time the City could lose $4.4 million.
City Council voted 5-1 Wednesday in favor of re-wording the ordinance and it was immediately submitted to the New Mexico Department of Finance Administration.
It is not known yet if the tax hike will be implemented Jan. 1, 2014 or July 1, 2014.
The increase will be 3/8 of 1 percent that will generate an additional 37 cents per $100. If the new tax is delayed until July 1, the City will lose the $4.4 million.