New Mexico will tax nonprofit operators of federal labs

February 28, 2019

SANTA FE, N.M. (AP) — State government will continue taxing contractors that manage national laboratories in New Mexico even when they have nonprofit status.

New Mexico Gov. Michelle Lujan Grisham signed the tax measures into law Thursday.

Without the legislation, the state might forgo tens of millions of dollars in taxes on sales and business services as it seeks to boost spending on public schools, infrastructure projects and pay increases for state workers.

The management group that took over Los Alamos National Laboratory last year includes nonprofit organizations such as Battelle Memorial Institute, the Texas A&M University System and the University of California. A tax-paying, for-profit contractor currently oversees Sandia National Laboratories in Albuquerque.

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