BUENAS yan kon respeto.
I am writing this letter to your attention to ask you to introduce a House bill that will grant tax relief incentives to Tinian and Rota businesses that service sales with merchant machines. I don’t have the figures of how many here on Tinian are carrying credit/debit cards, but I do know that it is very convenient if majority, if not all, of the businesses have merchants. I for one do not carry cash most of the time and it is just inconvenient when I go to Bank of Guam’s ATM only to be charged extra because my card is from another bank. I have also contacted vendors regarding this issue and one of them told me that he is entertaining the idea but it is pending because of fees being imposed by the bank. It is of my opinion then that the bill should include the following:
1. The incentive shall strictly be in reference to any and all merchant fees being imposed by the bank.
2. The incentive shall apply to any businesses (sole or corporations) that have been in operation for three years or more (this is in fairness to those who have been in business for some time).
3. The only time to claim the tax credit is when filing their annual tax report, provided that if no tax is assessed, then the credit shall be applied to the following 1st quarter.
4. The reimbursement/credit computation shall be 100 percent for locally owned businesses and 50 percent for non locals.
I understand that item #4 probably has constitutional question in terms of discrimination, so let me state it clearly that that is not my intention. If Public Law 11-87 can make the stand, why not then my suggestion? However, if someone will still challenge the legality, then by all means, I’m in support of the equal computation.
Lastly, to be honest with you, this was one of my ideas since before the 2007 midterm elections and I was to share this with Mr. Anthony U. Hofschneider immediately upon taking office. However, because of the economic hardship the CNMI is facing, I just don’t care who gets the credit. I feel that anything that will help businesses in the CNMI weather this economic crises shall be an overriding factor over any personal opinion.
I look forward to any positive respond this matter gets.
ESTEVAN P. CABRERA
Carolinas Heights, Tinian
