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Governor calms fears of delay in rebate payments
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Posted on Mar 09 1999
Gov. Pedro P. Tenorio yesterday assured taxpayers that funds have been reserved to pay out rebates for tax year 1998, easing growing fears that money will be held up again because of the deepening financial woes confronting the government.
“We have reserved funding for rebates…Hopefully we will be able to expedite the disbursement of rebates,” Tenorio said, “People are entitled to rebates and they will get the rebates.”
While assuring people that rebates will be paid out, the governor appealed to people to bear with possible delay because “we’re still in a financial crisis.”
In 1998 taxpayers did not receive their rebate money until July due to a shortfall in the rebate trust account. In the past, checks for rebates, refund and Earned Income Credit were released in lump sum during the month of May.
Money intended for rebates was believed to have been merged with general funds by the previous administration. When Tenorio assumed office, the trust account amounted only to over $2 million when it should been at $30 million.
Short of cash, the government has pushed back release of rebate and refund checks to allow it to rebuild the special trust account.
However, recipients of EIC may have to wait longer, according to Tenorio, since the administration is still trying to raise funds to cover payment for some $5 million to $6 million in tax credits for tax year 1997.
A total of $28.07 million in rebates and refunds have been paid out by the Department of Finance for the last tax year to more than 42,000 individual and corporate taxpayers.
Over $20.45 million have been spent to pay back 42,780 individual filers and some $7.62 million for 51 corporate taxpayers. For tax year 1996, the government paid out an estimated $31 million for refunds and rebates.
