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Govt amends Developer Infrastructure Tax Act
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Posted on Oct 09 2004
Gov. Juan N. Babauta has signed a bill into law that allows senatorial districts to use developer taxes collected in their jurisdictions for infrastructure improvements for electrical, water, sewerage, road, drainage, and flood control systems, and solid waste management systems.
Babauta, on Oct. 7, signed House Bill 14-13, amending the Developer Infrastructure Tax Act to provide that all developer taxes collected will be used for infrastructure improvements in the senatorial district in which the development will be located.
Such taxes shall be placed in special accounts by the Department of Finance and shall be appropriated by respective legislative delegation for their use.
The funds can then be used for procurement, including parts, and maintenance of equipment for the identified projects.
“The administration supports this measure as it provides more flexibility to each respective legislative delegation to use their funds to improve development of the respective infrastructure needs in each senatorial district,” said Babauta.
The bill, authored by Tinian Rep. Norman S. Palacios, said that the CNMI government is challenged with managing its work, such as maintenance of essential public services, due to projected reductions in revenue.
It said that, while there is no funding for the repair and maintenance of heavy equipment or other resources necessary in maintaining public safety, there are available funds under the Developer Infrastructure Tax Act accounts.
“The Legislature finds that, although the developer tax was established exclusively for infrastructure improvements, each senatorial district should be given the latitude to utilize these funds as necessary,” it said.
The bill refers to “infrastructure improvement” as those involving public facilities such as electrical, water, sewerage, road, drainage, flood control, and solid waste.
Such improvements include the costs of land, construction, engineering, planning, administration, legal, and financial consulting fees associated with the acquisition of the land of the acquisition or construction of the improvement.
