Senator Moylan to Governor: Pay tax refunds with Section 30 money

Sen. James Moylan (PNC file photo)

Republican Senator James Moylan penned a letter to Governor Lou Leon Guerrero, requesting that the most recent bout of Section 30 dollars be used to pay Guam tax refunds.

In his letter, Moylan said, on September 5, 2020, the Department of Interior announced that nearly $70 million was being remitted to Guam for federal income tax advance payments under Section 30 of the Organic Act of Guam.

“Historically, administrations have utilized these monies to pay tax refunds, and in recent years this has assisted with the court order of paying refunds within six months from the filing deadline. I would like to request if your administration can immediately start paying out a large volume of tax refunds with the Section 30 funds,” said Moylan.

Moylan says he’s aware that this year’s filing deadline shifted from April 15 to July 15, therefore the court mandated release date has been shifted to January 15, 2021.

“If we don’t start paying out these refunds now, we may not have the lump sum amounts available at the time as we do right now. I also recognize that your administration is slowly paying out tax refunds, such as the $4.2 million released (on Sep 12)…Thus, we need to expedite the process to get more money out within the community.

“The island is struggling, hence getting a large volume of refunds out now will allow families to make vital purchases, pay bills and help stimulate our economy. This opportunity may not come later if the Section 30 monies are used for other expenditures, and both the Business Privilege and Withholding Taxes are not collected as projected during the holiday season in December. My concern is that the government may not have a large lump sum of funds available in January.”

Section 30 of the Organic Act of Guam requires that all customs duties and Federal income taxes, quarantine, passport, immigration, and naturalization fees collected on Guam shall be covered into the Treasurer of Guam. These include federal income taxes from military personnel based on-island or consider Guam as their state of legal residence.

Senator Moylan’s full letter: