Bill upholds tax levy on national labs
BY KATY BARNITZ / JOURNAL STAFF WRITER
Monday, February 25th, 2019 at 12:05am
Legislation that would allow New Mexico to continue taxing national laboratory operators even when they have nonprofit status quickly made its way through the House on Sunday.
A fiscal analysis of the bill found that if the prime contractor of Los Alamos National Laboratory had tax-exempt status, the state could lose $25 million to $30 million in gross receipts tax revenue.
Rep. Christine Chandler, D-Los Alamos, said Senate Bill 11 ensures revenue stability for local governments, too.
The bill seeks to amend the section of state statute that exempts nonprofit organizations from paying GRT. It would create an exception permitting the state to tax nonprofits that have been contracted to operate a national laboratory.
Gov. Susana Martinez vetoed similar legislation last year.
The House passed the bill with a minor amendment that broadened the exception to include contractors running state-owned research facilities as well, though that does not currently exist in New Mexico.
Rep. Jason Harper, R-Rio Rancho, said the change would not “capture anyone” but it would also stop the bill from singling out federal facilities. The bill now returns to the Senate for consideration.
Triad National Security LLC, which the analysis said is organized as a non-profit and could seek to become tax exempt, ultimately took over management of LANL. Triad is made up of the University of California, Texas A&M University and the scientific non-profit Battelle Memorial Institute and is a non-profit itself.
https://www.abqjournal.com/1284907/bill-upholds-tax-levy-on-national-labs.html
BY KATY BARNITZ / JOURNAL STAFF WRITER
Monday, February 25th, 2019 at 12:05am
Legislation that would allow New Mexico to continue taxing national laboratory operators even when they have nonprofit status quickly made its way through the House on Sunday.
A fiscal analysis of the bill found that if the prime contractor of Los Alamos National Laboratory had tax-exempt status, the state could lose $25 million to $30 million in gross receipts tax revenue.
Rep. Christine Chandler, D-Los Alamos, said Senate Bill 11 ensures revenue stability for local governments, too.
The bill seeks to amend the section of state statute that exempts nonprofit organizations from paying GRT. It would create an exception permitting the state to tax nonprofits that have been contracted to operate a national laboratory.
Gov. Susana Martinez vetoed similar legislation last year.
The House passed the bill with a minor amendment that broadened the exception to include contractors running state-owned research facilities as well, though that does not currently exist in New Mexico.
Rep. Jason Harper, R-Rio Rancho, said the change would not “capture anyone” but it would also stop the bill from singling out federal facilities. The bill now returns to the Senate for consideration.
Triad National Security LLC, which the analysis said is organized as a non-profit and could seek to become tax exempt, ultimately took over management of LANL. Triad is made up of the University of California, Texas A&M University and the scientific non-profit Battelle Memorial Institute and is a non-profit itself.
https://www.abqjournal.com/1284907/bill-upholds-tax-levy-on-national-labs.html
