House Bill 17-79 was passed by a 13 to 6 vote.
The products, which have Energy Star certification from the U.S. Environmental Protection Agency and the U.S. Department of Energy, are appliances, equipment and devices that help save power cost and protect the environment.
In 2006, the CNMI government enacted Public Law 15-30 that exempts Energy Star products from excise tax to encourage businesses and individuals to sell and use products that conserve energy.
But according to H.B. 17-79, introduced by House Floor Leader George N. Camacho, Ind.-Saipan, the 100 percent tax exemption “may not be necessary in view of the substantial amount of products that are being shipped the CNMI with Energy Star certification.”
He believes that dealers of Energy Star products still charge high retail prices despite the tax exemption.
Camacho’s bill was introduced last year but was referred to committee after the House minority bloc prevented the leadership from passing it in November by a 9-9 vote.
H.B. 17-79 found its way back to the session calendar with majority of the House members already supporting it.
Those who were still against its passage were Saipan Republican Reps. Frank S. Dela Cruz, Joseph P. Deleon Guerrero, Tony P. Sablan, Ramon A. Tebuteb, Ray N. Yumul and Tinian Republican Trenton B. Conner.
Those in favor besides Camacho were Speaker Eli D. Cabrera, R-Saipan; Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan; Reps. Froilan C. Tenorio, Covenant-Saipan; Raymond D. Palacios, Covenant-Saipan; Ralph S. Demapan, Covenant-Saipan; Edmund S. Villagomez, Covenant-Saipan; Sylvestre I. Iguel, Covenant-Saipan; Stanley T. Torres, Ind.-Saipan; Teresita A. Santos, Ind.-Rota; Ramon S. Basa, Covenant-Saipan; and Joseph M. Palacios, R-Tinian.
House Minority Leader Diego T. Benavente, R-Saipan, was absent.
Before the members voted on the bill, Dela Cruz urged the leadership not to burden consumers with additional costs.
Deleon Guerrero, for his part, said there is no guarantee that the retailers will raise their price by 2 percent only.
Tebuteb said the bill should be based on a “cost-analysis” that shows how much the government will earn from its implementation.
But Rep. Joseph M. Palacios, who chairs the House Committee in Natural Resources, defended Camacho’s bill.
He said although vendors will pass the tax onto the consumers, “2 percent is not too much.”
Basa, who chairs the House Committee on Ways and Means, said the disposal of these products costs the government, so a 2 percent tax is not too high.
