The Senate version of House Bill 17-40 reduced the proposed fee increases by half.
The license fee for road side vendors which the House wanted to increase from $5 to $100 amounts to $25 in the Senate version of the bill.
The proposed increase in the $50 general business license fee which the bill’s author, Saipan Republican Rep. Eliceo D. Cabrera, said has not change for over 20 years will be increased to $100.
The Senate did not change this amount.
The Senate and House leadership met yesterday morning to discuss H.B. 17-40.
In an interview yesterday, Manglona, Ind.-Rota, said he is optimistic that the bill as amended by the Senate will be passed by the House.
He expressed appreciation for the presence of Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan, and House Ways and Means Chairman Ramon S. Basa, Covenant-Saipan, in the meeting.
This revenue generating measure will help determine how far the CNMI government can “stretch” its fiscal year 2011 budget, Manglona said.
In a separate interview, Basa said he was happy that the Senate supported the bill.
“We also need to be mindful of the fact that due to the economic situation on the island, the businesses are also suffering. We don’t want to really make the fee increase drastic. That is also the recommendation from the public that if license fee has to be increased, it should be done gradually,” he said.
The government, he added, has never raised business license fees for more than 20 years. Compared to other jurisdictions in Micronesia, he added, the CNMI has the lowest business fees.
Saipan Chamber of Commerce executive director Kyle L. Calabrese declined to comment on the Senate’s version of the bill saying he had not reviewed it.
But in an earlier statement, the chamber expressed dismay when the House passed H.B. 17-40, saying the fee hikes would increase retail prices and “dissuade” new investments.
The following is the list of the fee hikes originally proposed by the House compared with the Senate version:
