STIMULUS monies that the CNMI government will provide taxpayers are now exempted from local taxation.
On Friday, Gov. Ralph DLG Torres signed House Bill 22-81 which is now Public Law 22-15, exempting from the Northern Marianas Territorial Income Tax the local stimulus funded by the American Rescue Plan Act.
Authored by Rep. Angel A. Demapan, H.B. 22-81 states that the $500 for each eligible individual and $500 for each dependent of an eligible individual are assistance to CNMI households affected by the negative economic consequences of the Covid-19 pandemic.
In an interview, Demapan said taxing the local stimulus payments would be inconsistent with the objective of the stimulus plan, “and would only create additional burden on our people.”
He said the new law will also help the people recover from the economic hardship brought about by the pandemic.
“I want to thank Finance Secretary David DLG Atalig and his team for working with me on putting together this much needed legislation — my colleagues in the House and Senate for unanimously supporting passage of this legislation, and Gov. Ralph Torres for signing this bill into law,” Demapan said.
Gov. Ralph DLG Torres signs House Bill 22-81 into law as its author, Rep. Angel Demapan, looks on Friday in the governor’s office.
