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F I S C A L I M P A C T R E P O R T
SPONSOR Salazar
ORIGINAL DATE
LAST UPDATED
3/15/07
HM 110
SHORT TITLE LANL Tax Status Economic Impact Study
SB
ANALYST Guambaña
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicate of Senate Memorial 82
Relates to Senate Memorial 49
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
House Memorial 110 requests a comprehensive assessment of the fiscal impacts on cities and
counties in the Los Alamos National Laboratory’s (LANL) employment base area resulting from
the changed tax status of LANL’s new contract and requesting that a comprehensive economic
development plan be developed for the LANL’s employment base area.
SIGNIFICANT ISSUES
According to House Memorial 110:
LANL was established over sixty-three years ago;
LANL’s budget of more $2,000,000,000 creates a significant, regional economic engine;
LANL's total work force of approximately 15,000 makes it the largest employer
in northern New Mexico;
The United States, through its agencies, has "recompeted" the contract for operation of
LANL, and the new contract took effect on June 1, 2006;
The new contract caused a change in the taxable status of LANL's operations;
The change in tax status has had an enormous fiscal impact on LANL, including a
pg_0002
House Memorial 110 – Page
2
budget deficit, reductions in work force and other changes that adversely impact the
people and economy of north central New Mexico;
The new taxable status requires that LANL pay gross receipts taxes in an amount equal
to approximately $40,000,000 to Los Alamos county and $50,000,000 to the State of
New Mexico;
The State of New Mexico has not assessed the fiscal impact on cities and counties within
LANL's employment base area, and
The regional economy in LANL's employment base area continues to experience extreme
dependency on laboratory funding, remains vulnerable to past, present and future
laboratory job cuts and lacks significant investment needed to build a new, sustainable
economy.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
House Memorial 110 duplicates Senate Memorial 82.
AG/mt