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Las Cruces Council To Mull Tax Proposal Monday

The City Council in Las Cruces is scheduled on Monday to consider a proposed tax hike.

The proposal is a response to a new law that will phase out the "hold harmless" payments the state currently makes to cities and counties.

The Las Cruces Sun-News reports (http://bit.ly/11p4Kwk) that city officials are considering a three-eighths of 1 cent increase in gross receipts taxes.

The increase would amount to 37.5 cents on a $100 purchase.

City officials say Las Cruces stands to lose about $8.5 million a year in hold stipends.

The proposed sales tax increase could generate as much as $8.2 million a year for the city and could grow through time if spending and the city's population increases measurably.