New ‘resort fee’ eyed

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Another tax is being eyed for imposition on the CNMI’s tourists. This time, they are calling it a “tourism resort fee.”

The House of Representatives, through one of their committees, is already starting to review the new resort tax that aims to secure more money for six government agencies.

Rep. Janet Maratita’s (R-Saipan) House Bill 21-67 seeks to impose a 5% “tourism resort fee” on occupants of rooms in a hotel, lodging house, motel, resort motel, apartment motel, rooming house, bed and breakfast, condominium, or similar facilities in the CNMI.

The 5% fee would be taken from the amount paid for accommodations and is exclusive of any incidental fees, charges, or taxes.

The collected fees will go to the Marianas Visitors Authority, Commonwealth Health Care Corp., the Public School System, Northern Marianas College, the Indigenous Affairs Office, and the Carolinian Affairs Office.

Under the proposed bill, MVA would get 40% of the collected amount for cultural promotion and enhancement; 15% would go to CHCC to pay for indigent and uncompensated care costs; 10% each would go to PSS and NMC; and the remaining 25% would be divided equally between the IAO and the CAO.

“We are reaching out to stakeholders such as the Hotel Association of the NMI, the Saipan Chamber of Commerce, MVA, Department of Finance, and others for their input [on the bill],” Rep. Ivan A. Blanco (R-Saipan) told Saipan Tribune.

Blanco chairs the House Committee on Ways and Means, which currently has the bill.

“Anyone is welcome to write or email [his or her] comments to my office,” he added. “We value inputs as they help during committee deliberations.”

H.B. 21-67 puts the duty of collecting the resort fees on the operator of the establishment while also requiring the collector to make a “monthly return” to the “secretary” on or before every 20th of the month.

The bill did not clarify who the “secretary” was referring to. Saipan Tribune attempted to reach out to Maratita to clarify since Friday last week, to no avail.

According to the bill’s findings, it states that the resort fee would assist both PSS and NMC.

“…PSS and NMC are tasked to mold…minds to allow for [the youth] to become positive contributors to our society as well as enhance their own livelihood with hopes that they would one day takes the helm and guide the future of the CNMIs,” it states.

Erwin Encinares | Reporter
Erwin Charles Tan Encinares holds a bachelor’s degree from the Chiang Kai Shek College and has covered a wide spectrum of assignments for the Saipan Tribune. Encinares is the paper’s political reporter.
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