Guam- Senator Sam Mabini says attaching her Bill 144-31 as a provision to the new budget law protects small businesses that sell or lease construction equipment on island.
According a release from her office, the “Use Tax Law” calls to remove the tax exemption on retail imports of construction equipment.
Mabini states importing hinders island businesses and limits economic benefits to Guam. The senator’s law also notes 60% of collections will be appropriated to the Department of Customs and Quarantine, Department of Public Works and the Guam Environmental Protection Agency.
Read Mabini’s Release Below:
FOR IMMEDIATE RELEASE
September 21, 2011
A provision in the new budget law protects local small businesses who sell or lease construction equipment. This is because Senator Sam Mabini attached her Bill No. 144-31 to the budget bill, removing the tax exemption on the retail import of construction equipment.
Importing, versus buying or renting locally, hinders island businesses and limits economic benefits to Guam. “They bypass local taxes. It’s unfair to tax-abiding Guam distributors and rental companies, and results in millions of lost revenue. There’s already a large degree of construction occurring in our community, and there will be even more as we start seeing the increase in buildup activity. This helps balance the playing field.”
Senator Mabini’s first law, known as the “Use Tax Law,” does not enact a new tax, but simply repeals previous exemptions. In addition, the senator’s law prescribes that 60 percent of the sums collected from the Use Tax Law be appropriated to the following agencies:
· Department of Customs and Quarantine: 20%
· Department of Public Works: 20%
· Guam Environmental Protection Agency: 20%
The appropriations to these agencies from this fund are to help offset the cost of activities related to the Use Tax Law, as well as augment support for Guam EPA and DPW mandates. The remaining funds collected from the Use Tax Law will be placed in the General Fund.
“I’m proud of the freshmen lawmakers,” Governor Calvo said. “They’re looking ahead and taking action on the things that need to get done in order to build a stronger community. Senator Mabini is protecting local small businesses. That’s important as the economy grows.”