- Associated Press - Sunday, June 28, 2015

SANTA FE, N.M. (AP) - A tax hike in the cities of Santa Fe and Espanola appears more likely to take effect this week.

The Santa Fe New Mexican reports (http://bit.ly/1TVrMd0) that a judge late last week denied both cities’ request for a temporary restraining order halting the tax increase.

However, First District Judge Sarah Singleton allowed a lawsuit initiated by the cities against Santa Fe County to move forward.

The cities are suing the county over a decision to raise its gross-receipts tax by one-eighth of a percentage point, a move that is supposed to start Wednesday.

Lawmakers approved a 2013 state tax package that allows local governments to impose a higher gross-receipts tax rate within their jurisdictions.

The two cities say county ordinances should only apply to unincorporated areas belonging to the county.

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Information from: The Santa Fe New Mexican, http://www.sfnewmexican.com

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