GOVERNOR Arnold I. Palacios has signed House Local Bill 23-54, which imposes a 0.5% ad valorem local excise surtax on construction materials imported to Tinian.
Authored by Rep. Patrick San Nicolas, H.L.B. 23-54 is now Tinian Local Law 23-22. The bill was passed by the 23rd Tinian and Aguigan Legislative Delegation on Dec. 27, 2024.
The new local law requires the collection of the 0.5% surtax at the point of entry for construction materials headed to Tinian. A total of 3.5% in excise tax and local excise surtax on construction materials entering Tinian directly from outside the CNMI shall be collected on the island.
These surtax collections shall be remitted to the Second Senatorial District Local Excise Surtax Account to be appropriated by the Tinian delegation.
The new local law states that “it would be of great benefit to Tinian to impose the 0.5% ad valorem local excise surtax on construction materials imported by licensed contractor conducting business on Tinian.”
There are several U.S. military construction projects ongoing on Tinian.
