IN response to the persistent request of businesses, the Business License Application Task Force of the Department of Finance will cut the red tape on business license application process.
The task force says it will move for the repeal of a provision in P.L. 9-33 which requires an applicant to get clearance from the Workers Compensation Commission before a business license is issued.
In a March 28 report, Estrellita S. Ada, the task force chairwoman, informed Senate President Paul A. Manglona, R-Rota, and House Speaker Heinz S. Hofschneider, R-Saipan, of their plan following public complaints on the business license application process as being “wrong and unnecessarily burdensome for businesses.”
“The consensus of the members recommend that the provision within the WCC statute requiring prior clearance from the WCC before a business license is issued be repealed,” said Ada.
She said that instead of such practice, a substitute provision “(should) be enacted to require the Revenue and Taxation (Division) to provide WCC a copy of the business license application access to that data as submitted by every applicant on a regular basis.”
Also, the task force plans to eliminate the separate filing of the tax clearance application form. Ada said this should instead be incorporated into the business license application form.
Ada explained that a verification of the applicant’s compliance status can be determined internally, usually within a couple of days and a business license can be issued immediately thereafter.
If the applicant is not in compliance, he will be notified to correct the deficiencies found and the tax clearances will be granted once the applicant corrects the tax deficiencies. The business license will then be immediately issued after compliance.
Thus, the “speed in which business license can be issued is dependent on the taxpayer coming into compliance with the tax laws,” said Ada.
Also, in the same report, the Division of Revenue and Taxation said that it will taking steps to improve the licensing process.
Among the steps that will be taken by the division are:
1) Revising business license renewal application form and request only for updated information which it hopes to complete in a month.
2) Improving tax clearance procedure to reduce the time in obtaining such clearance by providing access to business license personnel to the tax database. This, the division said, will be included in the automation project that its is currently working on.
(3) Analyzing the fee schedule as well as extending renewal period for licenses.
