New Mexico Residents Must Address Tax Complaints in State Court

Residents of Rio Rancho can’t pursue their claim that the New Mexico city violated their due process rights in federal court because their petition included a refund request for fees associated with a local tax ordinance, a federal court ruled.

The federal Tax Injunction Act bars federal courts from deciding cases involving municipal tax administration, except where plaintiffs can’t receive an adequate and complete review of their claims in state court. The plaintiff residents here failed to show that exception applied because they elected to dismiss their ongoing state court action against the city of Rio Rancho and file in ...