County fears loss of GRT if Los Alamos lab gets nonprofit status
Los Alamos County officials are concerned that a stream of gross receipts tax revenues from Los Alamos National Laboratory -- tens of millions of dollars a year -- could dry up in coming months if the lab's new management contractor obtains nonprofit status from the IRS.
https://www.lamonitor.com/content/county-fears-loss-grt-if-los-alamos-lab-gets-nonprofit-status
en. Carlos Cisneros, D-Questa, said the tax revenue loss also would be felt by the state over time, particularly in years without an oil boom.
Cisneros is a co-sponsor of a bill introduced in the 2019 legislative session that seeks to amend the New Mexico Tax Code to prevent gross receipts tax exemptions for major contractors formed to operate one of the state's national labs.
"We rely on that funding for education and government services," Cisneros said.
If oil and gas "goes south, it takes a chunk of the budget, and we are back in a recession mode," he said. "So this additional cushion of up to $30 million coming in from the national lab is just as crucial for the state of New Mexico as it for the local government."
Nerzig did not answer questions about whether Triad was considering filing for tax-exempt status.
The National Nuclear Security Administration, which oversees the lab, also did not respond to questions about the issue Friday.
If Triad does obtain 501(c)(3) status, Los Alamos County would have to repay any taxes it has already collected from the company.
"That is a very difficult thing for a municipality," said Los Alamos County Councilor David Izraelevitz.
Like Burgess, Izraelevitz is concerned about the future of tax revenues from the lab.
"At this point, we are going basically month to month," he said, "until we hear any confirmation from them as to whether they will apply or not."
Los Alamos County officials are concerned that a stream of gross receipts tax revenues from Los Alamos National Laboratory -- tens of millions of dollars a year -- could dry up in coming months if the lab's new management contractor obtains nonprofit status from the IRS.
https://www.lamonitor.com/content/county-fears-loss-grt-if-los-alamos-lab-gets-nonprofit-status
en. Carlos Cisneros, D-Questa, said the tax revenue loss also would be felt by the state over time, particularly in years without an oil boom.
Cisneros is a co-sponsor of a bill introduced in the 2019 legislative session that seeks to amend the New Mexico Tax Code to prevent gross receipts tax exemptions for major contractors formed to operate one of the state's national labs.
"We rely on that funding for education and government services," Cisneros said.
If oil and gas "goes south, it takes a chunk of the budget, and we are back in a recession mode," he said. "So this additional cushion of up to $30 million coming in from the national lab is just as crucial for the state of New Mexico as it for the local government."
Nerzig did not answer questions about whether Triad was considering filing for tax-exempt status.
The National Nuclear Security Administration, which oversees the lab, also did not respond to questions about the issue Friday.
If Triad does obtain 501(c)(3) status, Los Alamos County would have to repay any taxes it has already collected from the company.
"That is a very difficult thing for a municipality," said Los Alamos County Councilor David Izraelevitz.
Like Burgess, Izraelevitz is concerned about the future of tax revenues from the lab.
"At this point, we are going basically month to month," he said, "until we hear any confirmation from them as to whether they will apply or not."
Comments
I am a bit confused by this because I thought Triad said they would be willing to pay taxes, perhaps they found out that legally they cannot do this or it could get them in some kind of trouble? I would also guess that DOE is not really onboard with the whole GRT thing and may be pressuring Triad. Does anyone know why this is being brought up again?
By the way New Mexico had a bit of a surplus at the end of Gov Martinez's term. Now the new governor is spending like crazy such as expanding the number of government workers, buying back the plane that Governor Richardson had that Martinez sold and so on. In fact the new proposed spending would use up the surplus by 5 times. I guess I know why the state also wants the GRT. That plane will be expensive.
January 28, 2019 at 3:27 AM
I am no LANS fan, but to be fair to them and Triad one really needs to understand what rate of
incidents is expected for institution of the size of LANL and for what LANL does. It sounds great to jump up and down whenever something happens but it really needs to be put in some kind of reasonable context. By the way all sorts of stuff happens at ORNL, but you will never hear about because ORNL never makes the news and no one has any idea what it is. POGO could care less, watchdog groups don't care ect. LANL is the Kim Kardashian of the complex, it will be reported on a weekly basis because it is known.