New lab contractor to pay New Mexico gross receipts taxes
SANTA FE, N.M. (AP) — A management group that will soon take over Los Alamos National Laboratory will pay gross receipts taxes, easing concerns that millions of dollars in revenue could evaporate if the group was deemed to have nonprofit status.
A representative of Triad National Security LLC confirmed this week state officials responded to a recent inquiry saying they believed the tax would apply to Triad, The Santa Fe New Mexican reports .
Nonprofits generally are exempt from gross receipts taxes on most business transactions. The tax makes up a major source of revenue that the state collects and shares with local governments.
Triad is led by nonprofits — Texas A&M system, the University of California and the Ohio-based Battelle Memorial Institute.
Scott Sudduth, assistant vice chancellor with the Office of Federal Relations for the Texas A&M University system, addressed the tax issue Wednesday during a meeting of community members.
“I know how important tax issues are to the community,” Sudduth told the audience.
Los Alamos County officials had previously said they could lose around $21 million annually and the state $23 million if Triad had nonprofit status.
Triad will take over in November and will begin paying the tax, Sudduth said.
Various Triad representatives said the Los Alamos meeting was called to hear community concerns and develop a community commitment plan.
The National Nuclear Security Administration announced in June that it chose Triad as the winning bidder to manage Los Alamos lab, the birthplace of the atomic bomb.
The new contract — worth an estimated $2.5 billion a year — marks a big step as federal officials look to get the lab back on track following a series of safety lapses and missed goals.
Triad will replace Los Alamos National Security LLC, the management team that had run the lab since 2006. That group was made up of the University of California, Bechtel National Inc. and other private companies. Missed performance goals prompted federal officials to announce in 2015 that the contract with Los Alamos National Security wouldn’t be renewed.
Information from: The Santa Fe New Mexican, http://www.santafenewmexican.com