Thom Mason, director of Los Alamos National Laboratory, said last week a County Council vote to raise the gross receipts tax to close a budget shortfall would hinder economic growth.
The Los Alamos County Council voted 6-1 Tuesday night to increase the gross receipts tax (GRT) in Los Alamos by 0.625%, effective July 1, 2026, according to local paper the Los Alamos Daily Post. The article said the increase is in response to a “substantial” receipt tax revenue reduction the county will receive from Los Alamos National Laboratory (LANL), the county’s largest contributor, since a portion of its operations now fall under New Mexico’s gross receipts tax exemption for manufacturing.
Mason, before the vote, said in an op-ed for the Los Alamos Reporter, another local paper, that he had “concern” about the increase because the lab “did not anticipate this additional cost” as the budget began to stabilize after years of growth for the lab.
“The projected increase to LANL is expected to be roughly $13.5 million a year, or $135 million over 10 years,” Mason wrote. “This proposed increase will have a direct impact on future hiring and programmatic activity at the Laboratory.”
Mason said LANL was an “economic engine” for Northern New Mexico due to an employee base in Santa Fe, Rio Arriba, and Los Alamos counties. “Increasing the gross receipts tax rate for the Laboratory and withdrawing $135 million from our budget over the next 10 years will have a negative impact on the county,” he added. “I urge county leadership to look for efficiencies and new ways to provide services to close their budget shortfall.”
A Council member and the county manager wrote a response to Mason in the same publication. “Because LANL is the region’s largest employer, bringing approximately 10,000 commuters into the community each workday and placing additional demand on local infrastructure and services, it is appropriate that the Laboratory contributes to current and future expenses related to housing, broadband, emergency response, traffic safety, and public safety, which directly support its mission,” County Chair Teresa Cull and County Manager Annie Laurent said. “Without this adjustment, projections show that the County could face deficits of $16–$20 million beginning in Fiscal Year 2027,” resulting in delays to infrastructure and community projects.
Former councilors also wrote an op-ed in the Daily Post Tuesday, saying the property tax bases for the County is minimal since most of Los Alamos county is federal property not generating property taxes. “The GRT is our primary source of revenue to support these priorities,” the op-ed said, saying the increase was nominal.