Vol. 35 No.17
       ©2007 Marianas Variety
Monday, April 9, 2007 www.mvariety.com
Serving the CNMI for 35 years
 

© 2007 Marianas Variety
Published by Younis Art Studio Inc.
All Rights Reserved
Email :
mvariety@vzpacifica.net
Bills seek to raise license fees

By Mar-Vic Cagurangan
Variety News Staff

TAKING a cue from the administration’s plan to raise government service fees as part of its revenue enhancement strategy, Sen. Adolpho Palacios Sr., D-Ordot/Chalan Pago, has proposed fee adjustments for banking, alcohol and real estate brokerage licenses.
Palacios’ introduction of Bills 88, 89 and 90 brought to six the number of revenue enhancement measures that he has introduced in the 29th Legislature. 
“I will introduce more related bills. This will be a series of bills, which I broke down from a previous lengthy bill that was introduced in the 28th Legislature, but was never reported out or publicly heard,” Palacios said.
He was referring to the administration-proposed Bill 199, which sought to authorize the increase of various fees by 100 to 500 percent.
“The old bill proposed to update fees that had not been raised for more than 25 years and the idea is to recover more than what it costs the government to provide the services,” Palacios told Variety.
“By breaking down that huge bill, these various service fee proposals will have more of a chance to be heard,” he added.
Bill 88 authorizes the Department of Revenue and Taxation to reevaluate the business banking laws and fees “and make necessary adjustments that would more accurately reflect the costs associated with providing these services.”
“The department recognized that it has been more than a decade since the business banking and license fees have been reviewed to more accurately reflect the costs the government of Guam incurs in providing such services to the island community,” states the bill, which proposes to raise the banking business license fee from $500 to $5,000. Under the same bill, the license fee for money lending business would be adjusted from $250 to $1,000.
Bill 89 would raise the real estate broker license fee from $20 to $200 for two-year coverage. The restricted broker’s license fee would increase from $50 to $400 for a four-year period.
Bill 90 would authorize DRT to raise the annual tobacco retailer’s license from $40 to $80; and the wholesaler’s license from $500 to $1,000.
Meanwhile, Sen. Rory Respicio, D-Agana Heights, urged acting Gov. Mark Forbes and acting Lt. Gov. Eddie Calvo to act on government fees while they are temporarily at the helm of the administration.
Gov. Felix P. Camacho is off-island while Lt. Gov. Mike Cruz is on personal leave.
“As senators, acting Gov. Forbes and acting Lt. Gov. Calvo have repeatedly challenged the administration to address the outdated fee schedules in the government of Guam,” Respicio said.
“Now as acting heads of the administration, they are in a position to take that action themselves.”