In his letter to the senators on Wednesday, Calabrese said although Senate Bill 17-45, which proposes a quarterly payment of business gross revenue tax is “a fine example of a way to improve the commonwealth’s finances,” many businesses suggest that an effective alternative to the proposal would be to require them to pay on a monthly basis but report on a quarterly basis.
He said several business owners and managers have expressed concern that the Division of Revenue and Taxation would be unable to process the paperwork associated with monthly reporting as opposed to monthly payments.
Businesses, he added, also believe the commonwealth should implement a payment method that would allow for a more convenient monthly BGRT payments — either directly through bank account or online payments.
However, he acknowledged that the companies transacting business with the CNMI government will face certain challenges in making monthly BGRT payments.
Government vendors do not get paid for over 90 days, he said.
“Inasmuch as businesses would be making more regular BGRT payments to the government, those companies who are owed but not paid by the government will have to use operating funds or owners’ profit to fund the monthly BGRT,” Calabrese said.
The chamber, he said, believes that monthly BGRT payment proposal would be widely accepted and might even encourage enhanced compliance.
