SANTA FE, N.M. — New Mexico Gov. Susana Martinez has rejected a bill that would have expanded dog and cat sterilizations by collecting a new fee from pet food manufacturers.

Martinez on Thursday announced her veto of the bill. She said the proposal amounted to tax increase and that local governments are better positioned to promote the spaying and neutering of pets.

The bill would have imposed a $100 fee on each pet food label for manufacturers doing business in New Mexico, raising an estimated $1.3 million each year.

Supporters of the measure said it would have a small financial impact on pet owners, while reducing the mounting expenses and hardships of euthanizing unwanted pets at locally run animal shelters and pounds.