DRT revises business license regs; sets new fees

The Division of Revenue and Taxation of the Department of Finance announced yesterday the adoption of amendments on business license regulations and new fees that became effective last July 12, 2022.

In a memo addressed to all CNMI taxpayers dated July 21, it said the public notice of certification and adoption of the proposed amendments to the business license regulations were published in the Commonwealth Register on June 28, 2022 (Volume 44, Number 06, Page 048589).

Major amendments include:

⁃ Changes to annual business license fees

⁃ Changes to make lines of businesses consistent with the North American Industry Classification System (NAICS)

⁃ Regulations for temporary business licenses

⁃ Regulations regarding prorated fees

⁃ Regulations implementing other fees, such as fees for late filing, expedited business license approvals, and amendments to business licenses certificates.

New fees

The new fees that became effective last July 12, 2022, include the following:

(a) Annual Business License Fees. The following annual fees shall be paid for each line of business upon submission of an application for a new business license or renewal application for an existing business license:

(1) Agriculture, Forestry, Fishing & Hunting, $100.00;

(2) Mining, Quarrying, Oil & Gas Extraction, $100.00; (3) Utilities, $300.00;


(4) Construction, $100.00;


(5) Manufacturing, $100.00;

(6) Wholesale Trade, $100.00;

(7) Retail Trade, $100.00;


(8) Information Industries, $300.00;


(9) Commercial Banking, $500.00;


(10) Offshore Banking, $1000.00;


(11) Other Depository and Non-Depository Credit Intermediation, $300.00;

(12) Securities, Commodity Contracts, Other Financial Investments, $300.00;

(13) Insurance Carriers/Companies, $300.00;


(14) Insurance Agencies, Brokerages and Other Insurance Related Activities, $100.00; (15) Funds, Trust and Other Financial Vehicles, $100.00;


(16) Real Estate, $100.00;


(17) Rental & Leasing, $100.00;


(18) Professional, Scientific, and Technical Services, $100.00;


(19) Management of Companies and Enterprises, $100.00;


(20) Administrative & Support Services, $100.00;


(21) Waste Management & Remediation Services, $300.00;


(22) Educational Services, $100.00;


(23) Health Care & Social Assistance, $300.00;


(24) Accommodations, $100.00;

(25) Food Services & Drinking Establishments, $100.00;


(26) Other Services (Except Public Administration), $100.00;


(27) Temporary Business License. $20.00

(b) Other Fees. The following are other fees that may be imposed upon a business or applicant:

(1) Late Filing Fee per Business License Certificate, $10.00;

(2) Duplicate License Fee per Business License Certificate, $20.00;

(3) Expedite Fee per Business License Certificate, $20.00;

(4) Amendment Fee for Change of Location per Business License Certificate, $20.00;

(5) Amendment Fee for Change of Business Name/DBA Name per Business License
Certificate, $20.00;

(6) Amendment Fee to Add a Business Name/DBA Name per Business License Certificate, $20.00

(c) Temporary Business Licenses. Temporary business licenses shall only be issued for community and public events not lasting more than thirty consecutive days. Temporary business licenses cannot be transferred or renewed. Application requirements provided in § 70-40.1-105 do not apply to temporary business licenses. The application requirements for temporary business licenses shall be set forth in application forms prescribed by the Division of Revenue and Taxation.

(d) Calculating Fees for a Partial Year.

(1) Annual business license fees for obtaining a business license for an additional location or line of business shall be prorated based on calendar year quarters. New business licenses shall expire on the same date as existing business licenses and Applicants are required to pay 25% of the annual fee for the quarter in which the application is submitted, plus 25% for each quarter remaining through the quarter of expiration. Calendar year quarters are as follows:

⁃ 1st Quarter: Jan. 1 through March 31
⁃ 2nd Quarter: April 1 through June 30
⁃ 3rd Quarter: July 1 through Sept. 30
⁃ 4th Quarter: Oct. 1 through Dec. 31 (PR/Saipan Tribune)