Adelup receives $70M in Section 30 funds; tax refunds to accelerate

(PNC file photo)

The administration has already received some $70 million in Section 30 funds and as a result, Adelup says the payout of unpaid tax refunds will be accelerated.

According to Adelup, those awaiting tax refunds will not have to wait much longer and the administration will be paying out, in short order, qualified A-status tax
refunds filed to date, thanks to the cash boost from the receipt of the Section 30 funds.

“Our first priority as an administration is and continues to be strict fiscal discipline. The payment of tax refunds has always been one of those priorities. Since taking office, the fiscal discipline team implemented a system that ensured that refunds are paid on a consistent, weekly basis,” Gov. Lou Leon Guerrero said in a release.

As her fiscal discipline team continues to make progress in stabilizing finances through aggressive collections and prudent cash management, the governor said the timely payment of tax refunds, as well as all other obligations of the government, will continue to improve.

“No Organic Act amendment is needed to do what we have done through diligent work and implementing sound policies geared towards fiscal solvency,” the governor said, taking a swipe at Congressman Michael San Nicolas who recently introduced H.R. 4262 which specifically requires the government of Guam to process and pay a tax refund within 90 days of its individual filing, as opposed to the court order to pay within six months from the deadline to file.

Responding to the governor’s swipe, San Nicolas issued his own statement, saying that refunds are slower this year than they have been in the preceding four years.

“Over the last five years the payout rate – not frequency – has declined, with this year actually being the slowest. Section 30 funds are disbursed by the federal government to fund the upcoming fiscal year, not backfill intentional current year shortfalls to our taxpayers,” the congressman said.

He added: “All of this spin is indicative of willful intent not to actually fix the problem or adhere to existing local law, and underscores the need for an Organic Act amendment to remedy the matter.”