By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
THE Department of Finance’s Division of Revenue and Taxation is closely monitoring construction activities in the CNMI, including the ongoing military buildup on Tinian, its director, Daniel Alvarez, told lawmakers during a joint meeting of the House Ways and Means and Senate Fiscal Affairs Committees held Wednesday.
Responding to House Ways and Means Chair John Paul Sablan, who asked what to expect from the construction industry in the first quarter of fiscal year 2026, Alvarez said there are multiple construction projects happening on Tinian. As a result, this year’s collection of taxes derived from construction activities in the CNMI has already exceeded that of previous years.
Alvarez estimated that FY 2025 collections from construction-related taxes would total around $7 million. This amount includes withholding taxes and business gross revenue taxes collected from contractors.
Finance Secretary Tracy B. Norita said tax projections for the first quarter of FY 2026 will depend on the pace of ongoing projects. In addition to the military construction on Tinian, she said the CNMI government also anticipates more projects funded by the U.S. Department of Commerce’s Economic Development Administration.
However, projecting the actual amount of tax collections from these construction projects, she said, “is something that is difficult for us to ascertain. That is why we just have to watch closely the revenue reports.”
Rep. Ralph N. Yumul noted that construction materials vendors have seen an increase in sales in both FY 2024 and FY 2025, suggesting a likely rise in excise tax collections for hardware and construction materials.
Norita said overall excise tax collections have decreased, adding that “business industries as a whole are importing less.”
However, regarding the influx of construction materials for the military buildup, Norita acknowledged, “That is something we noticed as well, where imports are coming in.”
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.