SAIPAN Reps. Diego Vincent F. Camacho, Roman Benavente, and Manny Gregory T. Castro on Tuesday “called out” Tinian Rep. Patrick San Nicolas for introducing House Local Bill 23-55, which proposes to impose a gross revenue tax on Tinian construction activities.
They noted that House Bill 23-74 remains pending in the Senate. Introduced by Rep. Ralph N. Yumul, that bill would impose a 3% tax on the yearly gross revenue of construction activities earning over $250,000 for a period of three years.
H.L.B. 23-55 would allocate the Tinian construction tax collection for the island while under H.B. 23-74, the construction tax collection would go to the general fund and “benefit the entire Commonwealth.”
During the miscellaneous part of the session, Camacho told San Nicolas that H.B. 23-74 “is a very similar piece of legislation that addresses the same goal and intent, but CNMI-wide as opposed to your local bill.”
Camacho added, “That is your prerogative. But I ask those who repeatedly use the mantra of ‘let’s work together’ to please act on a revenue-generating bill that will benefit the whole CNMI.”
Benavente, speaking in Chamorro, said San Nicolas has to realize that “we are one Commonwealth.” Benavente said it is the entire CNMI that is struggling, but H.L.B. 23-55 is only for the benefit of Tinian.
Castro said he understands that Rota and Tinian need help, but “if we are going to that direction,” referring to the Tinian local bill, “then we can decentralize everything and reverse all Commonwealth-wide taxes like excise taxes and make them for Saipan only, or for Rota or Tinian only.”
But “if we are trying to help each other … make it a Commonwealth-wide bill rather than a local bill,” Castro added.
He also noted that H.B. 23-74 was criticized because it is a tax-hike measure.
“Yet we see the same legislation introduced on a local level by [those] who [are] against tax bills. So if we truly want to be one Commonwealth, we need to make sure that the tax system is fair,” Castro said.
He added that a lot of business activities happen on Saipan and a lot of the tax collection here end up on Tinian and Rota.
San Nicolas, speaking in Chamorro, said Gov. Arnold I. Palacios’ fiscal year 2024 budget submission did not provide Tinian with enough funding so Tinian leaders are trying to address their budget shortfall.
Recently, moreover, the Commonwealth Ports Authority announced it will use $8 million from the U.S. Air Force land lease on Tinian to pay off CPA’s debt and reduce airport fees.
According to Sen. Karl King-Nabors, who chairs the Tinian Legislative Delegation, it is his understanding that the divert airfield funds are supposed to be allocated for the projects at Tinian airport and seaports that are being affected by the military construction on the island.
Rep. Patrick San Nicolas, right, talks with Rep. Ralph N. Yumul during a break from a House session on Tuesday.
Rep. Diego Vincent Camacho speaks during a House session on Tuesday.
Rep. Manny Gregory T. Castro listens to Rep. Patrick San Nicolas — not in photo — during a session on Tuesday.
Rep. Roman Benavente delivers his remarks on Tuesday.
