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Spaceport tax referendum fails in N.M. county
Posted: Wed, Nov 5, 2008, 10:00 PM ET (0300 GMT)
Spaceport America illustration A proposal to increase the sales tax in a New Mexico county to help fund the development of a commercial spaceport was narrowly by voters on Tuesday. The referendum in Otero County, New Mexico, which includes the city of Las Cruces, would have increased the gross receipts tax by one-eighth of a percent to support the development of Spaceport America, a $200-million commercial spaceport that will be used by Virgin Galactic and other companies. The tax increase was defeated by a 52-48 percent margin during Tuesday's general election. Similar taxes were approved last year and earlier this year in two neighboring counties in southern New Mexico. The rejection of the tax in Otero County does not jeopardize development of the spaceport, but will force the state to seek alternatives for the several million dollars of lost tax revenue.
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