BY Nancy Bartlit
Christine Chandler
George Chandler
Denise Derkacs
David Izraelevitz
Ken Milder
Morris Pongratz
Sara Scott
Kyle Wheeler
Michael Wheeler

We write to express our support for the nominal increase in Gross Receipts Tax to be considered Tuesday by our County Councilors. We are County residents and former Councilors whose service to Los Alamos and LANL spans decades and whose perspectives cover the spectrum of political positions. 

Key responsibilities of our County government are the maintenance of basic governmental services and support for an enhanced quality of life, including public safety, housing, infrastructure, the local business community, and schools. Our property tax base is minimal because most of the County is Federal property, which does not generate property taxes. The GRT is our primary source of revenue to support these priorities. The GRT increase is nominal, amounting to 60 cents per $100 and should be seen in the light of the amount that is used to improve the general business environment, from affordable housing efforts to Local Economic Development Act (LEDA) investments in both large and small businesses. Importantly, it keeps our business environment competitive while continuing to maintain the lowest GRT rate in Northern New Mexico.

We knew that reduced GRT revenue from LANL was inevitable primarily because of the expected application by LANL of the recently enacted tax exemptions for manufacturing activities, mostly plutonium pit production. A previous Council considered a tax increase in 2023, but judiciously decided to postpone any decisions until the actual impact of LANL’s use of this tax exemption was realized. We now know that GRT revenue is projected to be reduced by 14%, and without a GRT increase, we will need to reduce programs or personnel and put other quality-of-life investments such as broadband expansion at risk.

Over the past decade, LANL’s increased activities have led to higher GRT revenue for Los Alamos County. This growth has also resulted in increased County expenditures, from infrastructure maintenance to public safety enhancements. We have utilized this revenue to improve our school facilities, bolster reserves for potential LANL downsizing, and create regional programs that have fostered improved relations and collaboration with our neighboring communities. 

While the projected impact on LANL of the proposed $13.5 million is nominal and two-tenths of 1% of its $5B budget, it represents a significant portion of the County’s revenue. The proposed GRT action will allow the County to continue to build a vibrant, safe community for its residents that is critical to LANL’s recruitment and retention efforts.  

We commend the Council for its leadership in moving forward with this difficult but necessary policy decision.