More New Mexico cities join lawsuit against tax agency

New Mexico

More than a dozen New Mexico cities and counties have joined a lawsuit claiming the state tax agency has failed to accurately collect and distribute tax revenue.

The Albuquerque Journal reports the lawsuit initially filed by four cities in late 2018 requests for a judge to order the state Taxation and Revenue Department to compensate cities and counties for improper reductions to their revenue.

The suit claims the state automatically granted refunds to businesses that claim they overpaid and gave little explanation to the cities and counties that rely on that revenue.

Department spokesman Charlie Moore says the agency can’t comment on pending litigation.

He says the agency has created a liaison position to work with cities and counties and to answer questions about distributions.

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