TRIPLE J, one of the major businesses in the CNMI, is urging the House of Representatives to ensure that House Bill 23-93 includes a requirement to promulgate regulations for proper administration and enforcement.
House Bill 23-93 would, among other things, re-name the “hotel occupancy tax” the “transient accommodation tax.”
In his letter to Speaker Edmund S. Villagomez and House Committee on Commerce and Tourism Chair Julie Ogo, Triple J Corporate Counsel Jose Mafnas cited the Office of the Public Auditor’s 2020 report stating that no regulations were in place for the hotel occupancy tax.
Mafnas was responding to the House’s request for comment regarding H.B. 23-93, which Ogo authored. The bill would impose a 15% tax on the guests of air bed and breakfast rooms, or Airbnb’s, condominiums, a room or even an entire house used for transient accommodations. Public Law 18-1 imposes a hotel occupancy tax only on hotel guests.
Should H.B. 23-93 move forward, Mafnas said they recommend that it includes a provision requiring a promulgation of comprehensive regulations for the proper administration and enforcement of the intended transient accommodation tax “to avoid the same shortfalls caused by the lack of regulations for the hotel occupancy tax.”
Mafnas said mandating a promulgation of regulations may also cure taxation shortfalls.
Triple J is likewise recommending that the House committee consult with OPA regarding the 2020 audit report to determine whether any of the audit findings and recommendations contained in the report should be incorporated in the bill.
