THE fiscal year 2001 lease collections of the Marianas Public Lands Authority dropped by 58.5 percent compared to FY 1997.
MPLA’s potential lost income amounted to $1.677 million.
“Most of the difference between FYs 1997 and 2000 relates to the audit adjustment for 2000—additional allowance for doubtful accounts was provided by the auditor and were recorded against revenues. But for the percentage of gross receipts, there was a significant decrease due to the economic crisis in the CNMI,” MPLA said in a report.
In FY 1997, MPLA’s collections totaled $2.865 million. Only $1.652 million were collected last year.
The lease payments of MPLA’s major clients like hotels and golf courses are usually fixed or computed based on at least 3 percent of their gross receipts, whichever is higher.
MPLA Commissioner Bertha C. Leon Guerrero said since most of their clients are dependent on the local tourism industry, the arrivals rate of tourists contributes greatly to their revenue.
But although the percentage of MPLA’s gross receipts collection was down, its total revenue during FY 2001 rose by 102 percent to $5.634 million compared to $2.849 million in FY 2000.
Much of the increase came from the temporary permit revenue collections which grew to $232,807.06 last year compared to the previous year’s figure of $60,862.94.
Income derived from the long-term lease revenue in FY 2001 also went up by $991,845.20 compared to the previous year.
MPLA is currently working on at least seven homestead projects throughout the CNMI.
But these projects are still subject to availability of funds, mainly through the revenue derived from lease payments.
