Republican senators James Moylan, Tony Ada, and Chris Duenas have introduced Bill 72-36, which proposes to remove the sunset provision applied to the Limited Exemptions of Business Privilege Taxes (BPT) for certain small businesses.
The measure was proffered because of Monday evening’s State of the Island Address, during which Governor Lou Leon Guerrero requested the Guam Legislature to make the program permanent.
In 2020, the 35th Guam Legislature passed Bill 323-35, which was enacted into Public Law 35-90. The measure created a special limited tax exemption program for those businesses which make above $50,000 and below $500,000, where they would be able to pay 3% of BPT on the first $250,000 of gross annual income. The Act proposed a 2-year sunset provision and is currently set to expire on December 31, 2021.
“I have been a strong proponent of programs to assist small businesses, and with this economic crisis, it is vital that additional efforts be placed to provide needed support. At the start of this term, I was joined by Senators Ada, Duenas, and (Frank) Blas in introducing a bill to increase the qualifying threshold of the Dave Santos Act from $250,000 to $500,000. I hope to get the measure on the session agenda soon,” stated Senator Moylan.
He added: “I am glad that the governor supports the effort of making this tax exemption program permanent, as it provides some relief for small businesses. Likewise, I also appreciate the support of Senators Ada and Duenas in being co-sponsors of Bill 72-36.”