VIDEO: Governor Will Seek Release of Next Year’s Refund Reserve to Pay Remaining 2011 Refunds

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Guam – Governor Eddie Calvo says he will seek approval from the legislature to use the $33-million dollars currently held in the tax refund reserve to help more of the outstanding tax refunds still owed on 2011 returns.

The tax refund  bond that was recently sold will only pay out about $60 million dollars worth of the over $100 million dollars owed in tax refunds for 2011.

But there is some $33 million dollars in the 2012 tax refund reserve fund that can still be used to cover more of the 2011 refunds, as long as the money is re-appropriated.

“We do have about $33 million dollars that is currently in reserve to payout 2012 tax refunds and of course with the current budget law that is in place we can’t spend that on anything else,” said Governor Calvo.

“So we will be presenting legislation again to the legislature that will effectuate an amendment to the current budget law to allow for these monies that are currently available on reserve to be spent on prior year tax refunds,” he said.

However, Governor Calvo acknowledged that even if this $33 million in reserve funding is added to the $60 million in bond proceeds there are still tax refunds that need to be paid out for the 2010 tax year.