local refunds and rebates using federal monies that the U.S. Department of Treasury paid the CNMI for the cover-over taxes.
Finance received $26.2 million from the Treasury Department in Dec. 2007 as second partial payment for the CNMI’s over $60 million in cover-over taxes the federal government collected from commonwealth residents since 1978.
Fitial told Finance Secretary Eloy Inos to use the cover-over funds to pay the taxpayers’ overdue refunds and rebates for tax year 2006.
“With the record spikes in fuel costs, I trust that these tax rebate and stimulus checks will provide a significant measure of financial relief to many struggling families and individuals,” said the governor.
Inos previously told Variety that the Finance Department will release refunds for local taxpayers this month.
Local rebates should be out by July, he said.
“We’re going to be busy this summer. Starting with the U.S. stimulus rebates in May. June would be for regular refunds followed by the rebates. Between May, June and July, we should be done by this program,” Inos said.
The CNMI government has yet to fully settle tax rebates owed beginning in tax year 2004.
Local taxpayers are entitled to rebates of up to 90 percent of taxes they paid to the government each tax year.
Thousands of Chinese garment workers who lost their factory jobs went home without getting their rebates.
Inos said the cover-over taxes reimbursements were deposited into the CNMI’s rebate trust fund account.
Fitial thanked the U.S. Congress and President Bush for including the CNMI in the nation’s economic stimulus program.
“I am grateful to the U.S. government for including the CNMI. The cash infusion from the U.S. government comes at just the right time for many families in our community. The funds are needed to pay for expenses and provide an added boost to consumer spending,” he said.
He also thanked Inos and his staff for processing the checks and complying with the U.S. Internal Revenue System requirements.
“I am very pleased with our Finance Department’s work in getting these checks out expeditiously,” said Fitial.
“The commonwealth treasury will certainly welcome any increase in revenues due to this large infusion of cash into our economy. Even so, it is unlikely that this will be enough to offset the anticipated negatives for the current fiscal year,” he said.
Many nonresident workers got $300 in U.S. rebates.
Apparently, taxpayers with less than $600 in deductible income will get half of the $600 in U.S. rebate entitled to each individual taxpayer.
Under the law, tax rebates will be paid in the amount of $600 per individual, $1,200 for joint filers, and $300 per eligible child.
