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Torres vetoes HB 19-173
Just before leaving for Washington, D.C. to attend President Donald Trump’s inauguration last week, Gov. Ralph DLG Torres vetoed House Bill 19-173 that would have allowed educational tax credit donations to the Northern Marianas Judiciary Historical Society. Rep. Vinson F. Sablan (Ind-Saipan) introduced the measure.
Torres, in a letter to House Speaker Rafael S. Demapan (R-Saipan) and Senate President Arnold I. Palacios (R-Saipan), advised them to consider if HB 19-173 would achieve its purpose.
“Essentially, it diverts funds directly from the CNMI and back to the taxpayers to donate. In order to address the issue, the Legislature should consider instituting a limitation on the amount of tax eligible for the ETC, so that the CNMI receives at least a portion of the taxes it is owed.”
Torres also raised his concern on the ETC statute that requires the historical society to maintain tax exempt status.
“The CNMI Division of Revenue and Taxation has indicated that the institution has not been granted tax exempt status nor has it applied for tax exempt status,” said Torres.
He added that organizations like NMJHS must maintain tax exempt status or it would be subject to local tax.
