New lab man­ager Triad will pay Gross Re­ceipts Taxes, of­fi­cial says

The Taos News - - VALLE VISTA - By Andy Stiny astiny@sfnewmex­i­can.com

A rep­re­sen­ta­tive of Triad Na­tional Se­cu­rity LLC, which takes over man­age­ment of Los Alamos Na­tional Lab­o­ra­tory in Novem­ber, said re­cently the con­sor­tium will pay gross re­ceipts taxes, eas­ing con­cerns of lo­cal of­fi­cials about los­ing mil­lions of dol­lars in rev­enue.

Scott Sud­duth, as­sis­tant vice chan­cel­lor with the Of­fice of Fed­eral Re­la­tions for the Texas A&M Univer­sity sys­tem, told an au­di­ence of about 50 com­mu­nity mem­bers dur­ing a meet­ing in Los Alamos that the New Mex­ico Tax­a­tion and Rev­enue Depart­ment re­sponded to a re­cent in­quiry from Triad by say­ing that “it is their view that the gross re­ceipts tax does ap­ply to Triad.”

Los Alamos County of­fi­cials had said pre­vi­ously that if Triad were deemed to have non­profit sta­tus, the county es­ti­mated it could lose $21 mil­lion an­nu­ally and the state $23 mil­lion in gross re­ceipts tax rev­enues, ac­cord­ing to pub­lished re­ports.

Non­prof­its gen­er­ally are ex­empt from the tax on most busi­ness trans­ac­tions, a ma­jor source of rev­enue that the state col­lects and shares with lo­cal gov­ern­ments where the trans­ac­tions take place.

Triad is led by the Texas A&M sys­tem, the Univer­sity of Cal­i­for­nia and the Bat­telle Memo­rial In­sti­tute, all non­prof­its.

“I know how im­por­tant tax is­sues are to the com­mu­nity,” Sud­duth told the au­di­ence.

Sud­duth said Triad will be­gin pay­ing the tax as of Nov. 1, and he said the let­ter from state rev­enue of­fi­cials was shared with the Na­tional Nu­clear Se­cu­rity Ad­min­is­tra­tion.

“We are en­cour­aged by that,” said David Izraele­vitz, who chairs the Los Alamos County Coun­cil. “The is­sue of gross re­ceipts taxes has been one of in­tense at­ten­tion by us.”

Gary Falle of the Of­fice of the Pres­i­dent of the Univer­sity of Cal­i­for­nia con­firmed dur­ing a break in Wed­nes­day’s ses­sion that Sud­duth had in­formed him of the gross re­ceipts tax de­ci­sion, but he said he did not have a copy of the let­ter and was not autho­rized to speak with the news me­dia.

Var­i­ous Triad rep­re­sen­ta­tives said the Los Alamos meet­ing was called to hear com­mu­nity con­cerns and de­velop a com­mu­nity com­mit­ment plan.

“We want to hear what is­sues are im­por­tant to the com­mu­nity,” Frances Chad­wick, staff di­rec­tor for Triad, told the gath­er­ing at Fuller Lodge in Los Alamos.

Triad late last year was awarded a multi­bil­lion-dol­lar con­tract by the Na­tional Nu­clear Se­cu­rity Ad­min­is­tra­tion to run the nu­clear weapons re­search fa­cil­ity for the U.S. Depart­ment of En­ergy, re­plac­ing con­trac­tor Los Alamos Na­tional Se­cu­rity LLC in over­see­ing a ma­jor eco­nomic en­gine for the re­gion.

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