SPECIAL SESSION IV, Day 2: No Vote Yet on Governor’s Refund Bond Amendment

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Guam – No action was taken on the Governor’s proposed amendment to the tax refund bond Wednesday.

 

It was the second day of the 4th Special Session called by the Governor in the past month, all of them dealing with the Governor’s proposed tax refund bond.

Lawmakers spent a few hours Wednesday afternoon hearing detailed testimony from Rev & Tax officials on property assessments and how the proposed amendment, Bill #1 (4-S)might affect the 90% debt limit. Some Senators have expressed concerns that the amendment might circumvent the 90% debt limit.

The Governor’s Chief Policy Adviser Arthur Clark used a white-board to help provide explanations to the questions raised by Senators.

Clark said the amendment boils down to allowing the full assessed value of  a homeoweners property to be listed on the tax rolls, while preserving the tax exemptions already in place on those properties.

By doing that the total assessed property value, upon which the debt limit is based, would be raised sufficiently to allow for a $243 million bond to be issued , without breaching the 90% debt limit.

Bond Counsel Stan Dirks has said the chnage is necessary in order for him to provide an “unqualified opinion” on the bond.

The language in the Governor’s proposed amendment was included in the Governor’s original bond borrowing bill, but removed in the compromise version passed last week. The Governor says it needs to be restored to allow for a $243 million dollar bond to be issued. As it stands now only $200-million in bond borrowing is possible.

The Special Session resumes Thursday at 10 am.

Read the Majority Leader’s report in FULL below:

September 21, 2011
For Immediate Release
 
SESSION UPDATE
Legislature Continues Fourth Special Session
 
(Hagåtña, Guam) – Majority Leader and Rules Committee Chair Senator Rory J. Respicio  reports  that  the  legislature  continued  day  two  of  the  fourth  special session called by I Maga’lahen Guahan.  
 
Today marked day two of discussions in Committee of the Whole, chaired by Senator ben pangelinan, Chairperson of the Committee on Appropriations and the Committee on Lands, on Bill No. 1(4‐S) – “AN ACT TO AMEND THE REAL PROPERTY  TAX  PROVISIONS  AND  THE  GENERAL  OBLIGATION  BOND AUTHORIZATION, AND FOR OTHER PURPOSES.” 
 
Senators  and  administration  officials,  including  Chief  Policy  Advisor  Arthur Clark and representatives from the Department of Revenue and Taxation and the Department of Land Management, are debating the issue of assessing the Home  Tax  Exemption  as  it  applies  to  the  consideration  of  the  government’s ability  to  float  the  bond  authorized  in  Substitute  Bill  No.  1(3‐S)  which  was signed into law this past Monday, September 19, 2011.  
 
Discussion  on  Bill  No.  1(4‐S)  continues  when  session  resumes  tomorrow, Thursday, September 22, 2011 at 10:00 AM.  The public can tune in on MCV Channel 13 or GUdTV Channel 21.

September 21, 2011 
For Immediate Release 
 
SESSION UPDATE 
Legislature Continues Fourth Special Session 
 
(Hagåtña, Guam) – Majority Leader and Rules Committee Chair Senator Rory J. 
Respicio  reports  that  the  legislature  continued  day  two  of  the  fourth  special 
session called by I Maga’lahen Guahan.   
 
Today marked day two of discussions in Committee of the Whole, chaired by 
Senator ben pangelinan, Chairperson of the Committee on Appropriations and 
the Committee on Lands, on Bill No. 1(4‐S) – “AN ACT TO AMEND THE REAL 
PROPERTY  TAX  PROVISIONS  AND  THE  GENERAL  OBLIGATION  BOND 
AUTHORIZATION, AND FOR OTHER PURPOSES.”  
 
Senators  and  administration  officials,  including  Chief  Policy  Advisor  Arthur 
Clark and representatives from the Department of Revenue and Taxation and 
the Department of Land Management, are debating the issue of assessing the 
Home  Tax  Exemption  as  it  applies  to  the  consideration  of  the  government’s 
ability  to  float  the  bond  authorized  in  Substitute  Bill  No.  1(3‐S)  which  was 
signed into law this past Monday, September 19, 2011.   
 
Discussion  on  Bill  No.  1(4‐S)  continues  when  session  resumes  tomorrow, 
Thursday, September 22, 2011 at 10:00 AM.  The public can tune in on MCV 
Channel 13 or GUdTV Channel 21.