With just a little more than a month left before a court-imposed deadline to pay out tax refunds, Gov. Lou Leon Guerrero has assured that her administration would be able to pay off tax refunds in time.
In an interview with Patti Arroyo on Newstalk K57, the governor said there’s only some $30 million in tax refunds that the Department of Revenue and Taxation still has to pay.
The governor said her administration has been able to pay off tax refunds on a weekly basis using local revenue that comes in.
With the recently announced Section 30 money that’s coming in, the governor sees no problem with beating the deadline to pay off tax refunds.
The Department of the Interior announced this week that it will be signing over $69,928,937 to Guam for federal income tax advance payments under Section 30 for fiscal year 2020.
According to the governor, Adelup has now caught up with income tax refunds and is now releasing refunds as quickly as possible.
In a previous monthly address, the governor said her administration is processing and paying tax refunds at a similar pace to previous years, even though it has to do so with less resources.
The governor said the reason for the delay in the refunds earlier in her term was that the volume of prior year returns was unusually high and by law, the Department of Revenue and Taxation is required to square away prior year returns before current refunds can begin.
The law also requires GovGuam to pay out refunds within six months of the deadline for filing.