THE House of Representatives on Monday passed two tax-hike measures: House Bill 23-68 would impose a 10% ad valorem tax on the purchase of certain vehicles, and H.B. 23-78, which would increase the taxes on soft drink and alcoholic beverage containers.
With Rep. Thomas John Manglona casting the lone dissenting vote, H.B. 23-68 now goes to the Senate.
Authored by Rep. Marissa Flores and co-sponsored by Speaker Edmund S. Villagomez, Reps. Blas Jonathan Attao, Manny Castro and John Paul Sablan, H.B. 23-68 proposes to impose a 10% tax on private individuals purchasing vehicles from dealerships or private parties “outside the CNMI.” The tax does not apply to businesses or commercial entities importing vehicles for resale or commercial use within the CNMI.
By a vote of 16 to 3, H.B. 23-78, also authored by Flores, passed the House as well. Manglona, Reps. Manny Gregory Castro and Roy Ada voted no.
H.B. 23-78 would raise to 15 cents from 5 cents the tax on each soft drink and alcoholic beverage container. Of the funds collected from these taxes, 10% would go to the Division of Customs and Biosecurity.
Fee hike
Also authored by Flores, H.B. 23-79 was unanimously passed by the House. It would increase the marriage license application fee to $250 from $125 for non-residents; and to $100 from $50 for residents.
During the miscellaneous part of the House session, Rep. Denita Yangetmai said a lot of people are complaining about tax-hike proposals.
She said there are other ways the CNMI can “make money,” perhaps by “bringing back” the garment industry or enticing investors to put up a shoe factory on island.
“We should get together one day, and discuss these things,” she said.
Flores said she, too, “believes wholeheartedly that nobody wants to raise taxes. But given the situation that we are in, our hands are pretty much tied.”
She agrees with Yangetmai that there’s more they can do, but “how do we that?”
“And even if we bring new investors here, there’s a lot that we need to do,” she added.
Lawmakers are also considering raising the tax on imported betel nut and lime, and imposing a 3% construction tax.
The administration, for its part, suggested raising the business gross revenue tax.
So far, no one has proposed measures to significantly reduce the government’s expenditures in light of its declining revenue collection.
