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Senate amends $15 hotel fee bill to make it effective July 1
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Posted on May 12 2012
By Haidee V. Eugenio
Reporter
Reporter
At the recommendation of the Fitial administration, the Senate passed an amended version of a House revenue-generating bill assessing a $15 environmental and tourism promotion fee among tourists or “transient” occupants of hotels, lodging houses, condominiums, and similar facilities in the CNMI, to make it effective July 1, 2012, among other things.
By a vote of 8-0, House Speaker Eli Cabrera’s (R-Saipan) House Bill 17-290 passed the Senate and is on its way back to the House for action.
Cabrera said the House leadership is poised to vote on the amended revenue-generating bill, and hopes that other members will also do the same.
“That Senate amendment is at the recommendation of the administration, and I expect it to pass the House, and signed by the governor. I know that there’s no other revenue generating bill that became law other than the original $15 tourism fee but it has to be amended because of local and federal concerns,” he said.
His HB 17-290 amends Public Law 17-29 as amended by P.L. 17-58 or the Tourism Incentive Program, which provides incentives to travel agencies bringing in more tourists from Asian countries to the CNMI and charges passengers from these non-U.S. destinations a $15 travel promotion fee.
The Fitial administration, however, ran into federal and local concerns on the charging of this fee on passengers, so it asked the Legislature to amend the measure-the only revenue-generating bill that became law so far during the 17th Legislature.
The law signed on Nov. 4 is being amended even before it could be implemented.
Cabrera’s bill assesses a $15 environmental and tourism promotional fee only among “transient” or tourist occupants of hotels, lodging houses, motels, resort motels, apartments, apartment hotels, condominiums, and similar facilities. It will be charged only on those above 13 years old.
Funds derived from the $15 fee will be deposited into a revolving fund administered by the Department of Finance and remitted to the Marianas Visitors Authority. These funds will then be used to build, equip, improve and maintain projects, agencies and facilities promoting recreation and tourism.
