HOUSE Speaker Heinz S. Hofschneider, R-Saipan, has introduced a measure that would increase the purchasing power of consumers by exempting the imposition of excise tax on certain commodities imported from the United States and its territories.
The speaker said the enactment of H.B. 13-95 or the Excise Tax Abatement Act of 2002 will result in lower prices of commodities and at the same time provide incentives for consumers to buy more goods.
Under the bill, the following goods and commodities from the U.S. or its territories are exempted from excise tax: food products, construction materials, clothing defined as manufactured apparel for men, women and children, including socks, underwear, pants, shorts, shirts, skirts, dresses, jackets, sweaters and any piece of garment worn by an individual.
Commodities used in the production of agricultural products would likewise be exempted from excise tax—fertilizers, seed, animal feeds, pesticides and herbicides, agricultural equipment, machinery, tools, irrigation equipment and other accessories.
The bill would amend 4 CMC 1402 by including any goods, commodities, resources or merchandise with a combined value of $1,000 in the list of goods that are exempted from excise tax.
When this bill becomes law, the Department of Finance would be mandated to monitor the revenue impact of the measure. Finance would be required to submit to the presiding officers of the Legislature annual reports on the effect of the measure to the economy , not later than 30 days after the fiscal year.
