By Emmanuel T. Erediano
emmanuel@mvariety.com
Variety News Staff
GOVERNOR David M. Apatang vetoed House Local Bill 24-14, which seeks to impose a 0.5% ad valorem local excise surtax on imported construction materials brought by contractors in Rota.
Authored by Rep. Julie Marie Ogo, H.L.B. 24-14 also proposes a total 3.5% excise tax, including the local excise surtax, on construction equipment, materials, and machinery entering Rota directly from outside the CNMI. The bill would require the Department of Finance to create a First Senatorial District Local Excise Surtax Account and the Rota Legislative Delegation to appropriate the funds for Rota.
In his veto message to the Rota Legislative Delegation chair, Senate Floor Leader Donald Manglona, the governor echoed the attorney general’s advice that the bill exceeds the legislative authority of the Rota delegation. Under the statute, a “local revenue bill” covers purely local taxes such as real property taxes, admission taxes to entertainment events within the senatorial district, or gross revenue generated within the district.
The governor said that because excise taxes are imposed at the site of importation into the Commonwealth, and because the bill purports to impose administration and enforcement duties on officers at the CNMI-wide level — such as the Department of Finance’s Division of Customs and Biosecurity — the excise tax proposed by H.L.B. 24-14 falls outside the scope of local revenue subject to the delegation’s legislative authority.
“I therefore respectfully exercise my constitutional authority to veto this bill,” the governor said.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
