$9.7M in tax rebate/refund checks yet to be released

Amid revenue shortfall and overall budget deficit, the government has yet to release $9.7 million or 40 percent in 2010 tax rebate/refund checks to thousands of taxpayers in the CNMI. This, as filing for 2011 income tax returns draws near.

Finance Secretary Larrisa Larson said during the weekend that the government has already paid “approximately $13.7 million,” and this was since mid-October when the Fitial administration started mailing out checks.

The $13.7 million represents 60 percent of the total claims, and the government continues to release checks as funds become available.

This means for tax year 2010, the total tax refunds and rebates is $23.4 million.

“We release checks in batches on a biweekly basis,” Larson told Saipan Tribune. “We also release smaller batches of checks in between to accommodate emergency requests.”

Larson said the latest release of tax rebate/refund checks was Wednesday last week.

Lt. Gov. Eloy S. Inos has asked for taxpayers’ patience waiting for their checks because of revenue shortfall and other priorities such as public health, public safety, and utilities services.

Eireen Gelera, 39, said she and her husband have been checking their mailbox since December, hoping to find a check in the mail to help with household expenses especially during the holidays.

“But Christmas and New Year came and went and there’s still no check,” said Gelera in an interview on Saturday at a laundry shop in Dandan.

The mother of two said the check will help her family make ends meet, especially because she lost her job just last year and her husband is the only one working.

“We had a joint filing for 2010 but for 2011, my husband will be the only one to file. When they announced in October that checks will be released, we thought we’d be able to receive ours before Christmas,” Gelera added.

Remy N., 39, said she’s only expecting a federal stimulus check of some $400 because she knew she has no tax refund.

“There’s an emergency in the family and I was hoping the federal stimulus check could help, but it didn’t come just in time. I guess we just have to be patient,” she said.

Other taxpayers hope to get their 2010 tax rebate/refund checks before they start filing their 2011 income tax returns in April.

The Fitial administration said checks will be released up to early this year.

A refund is for tax that has been overpaid or incorrectly paid, and is returned to the taxpayer, while rebate is for tax properly paid and is subsequently returned to the taxpayer under a rebate provision.