EUNICE, N.M. (KRQE) – A tiny New Mexico town has won a lawsuit against the state that clears them from having to pay millions of dollars.
The state had demanded the town of Eunice pay back more than $2 million in gross receipts revenue that were mistakenly given to the town over five years.
Eunice claimed a demand to fix the tax error could cripple them financially.
The mayor said, according to the law, they should only have to repay a year’s worth of taxes.
Eunice did repay the state about $183,000 but is off the hook for the rest.
The town will use the money to build a second fire station that it had put off.