Chamber still rejects Saipan casino

A Saipan Chamber of Commerce’s recent poll of its members showed they still do not support casino gaming on Saipan, while at the same time questions a 100 percent tax rebate of the exclusive casino license holder’s gross gaming revenue “when the overall true benefit” is already “exclusivity.”
Chamber of Commerce president Alex Sablan, in a letter to Gov. Eloy S. Inos, said a recent poll of Chamber membership “clearly stipulates” their “continued position that they reject casino gaming on Saipan, as has been proposed in current and past legislation.” The Chamber asked the governor to veto the casino measure.

The Chamber’s letter is dated March 19, two days before the governor signed House Bill 18-179 into Public Law 18-38.

But the governor said he signed the bill, with assurance from the House and Senate that they will amend the law immediately to address its problematic provisions, many of them pointed out by members of the public including the business community.

House floor leader Ralph Demapan (Cov-Saipan) said yesterday he will prefile the casino amendment bill as early as today.

There is no telling whether the Chamber’s specific concerns will be addressed in the amendment bill.

Sablan, in his two-page letter to the governor, said HB 18-179 as worded makes it difficult to ascertain how each respective item will impact current gaming in the CNMI and tax benefits derived, by offering a “CNMI exclusive gaming license” under the CNMI lottery law.

“It begs the question why a CNMI exclusive gaming license would rebate 100 percent of the gaming tax provision when the overall true benefit is exclusivity.  The potential tax benefit derived by gaming tax as well as all other taxes paid in without a tax abatement, could likely resolve not only the any retirement fund issues but also the shortage in funds for public health, safety, education and compensation that affect ‘daily’ the majority of taxpaying citizens and individuals of the CNMI,” Sablan told the governor.

This is in addition to the Chamber’s concern about the omission of the tax rebate language in HB 18-179, which became law Friday.

“We are deeply concerned that you are apparently satisfied with ‘assurances’ that a ‘technical amendment’ can be resolved through subsequent legislation, but once you enact this bill into law, it will nullify this very important provision that again benefits individual and business taxpayers of the CNMI without any guarantee that such amendments will fully restore the rebate structure to its current form,” Sablan said.

The Chamber president said the rebate provision of the Northern Mariana Islands Territorial Tax is too crucial an item to jeopardize with the passage of what was at the time HB 18-179, with only assurance of “technical amendments.”

“This has been an investor incentive that has helped build and sustain our economy and livelihood in good times and bad and should be zealously protected,” Sablan added.

The governor said on Sunday said he wants the amendment bill to clearly restore the tax rebate.

In mid-2013, the Chamber also polled its members about an earlier Saipan casino legislation. Most of those who participated said they are still opposed to legalizing casino gaming on Saipan.

The Saipan Chamber of Commerce is the largest business organization in the CNMI with some 150 members.