Teno: First batch of rebate checks out in Sept.

The first batch of rebate checks will be out in September, Gov. Pedro P. Tenorio assured yesterday in apparent effort to calm taxpayers awaiting their rebates and refunds in the last few months.

“The rebate is forthcoming. (The Department of) Finance is now processing the first batch of checks on a first-come, first-serve basis. That means Rota, Tinian and Saipan. If you submit yours in advance, you will get your checks first,” he told reporters.

Tenorio’s assurance followed last week’s full payment of the Earned Income Tax Credit by the government after almost two years of waiting by taxpayers, most of them from low-income families.

Made in three batches to ease the burden of the Tenorio administration in raising more than $6 million at one time, the payment covered tax year 1997.

The rebates and refunds to be paid out starting next month, however, cover tax year 1998, and payment of which must be settled six months from the date of the filing as provided under the Constitution.

Tenorio has had to reassure the public on the ability of the government to meet its obligations to taxpayers as his administration has been delayed in paying rebates and refunds due to the financial difficulties confronting the CNMI over the past two years.

“Definitely by September, you will see the checks coming out,” said the governor, adding it is his “commitment” to the people.

Finance Sec. Lucy DLG Nielsen earlier has said that the first batch of rebates and refunds for those who filed their income tax returns early would be mailed between October and November this year.

She maintained the government has funds to meet its obligations covering the last tax year, but said others might not be getting their rebates and refunds as scheduled.

DOF has raised more than 60 percent of the estimated $25 million that the government will need to pay out its obligations to taxpayers this year, of which at least $16 million have so far been transferred to the special rebate trust account to ensure prompt payment.

Last year, taxpayers did not receive their rebate money until July due to a shortfall in the rebate trust account. In the past, checks for rebates, refunds and EIC were released in lump sum during the month of May.

A total of $28.07 million in rebates and refunds have been paid out by DOF for tax year 1997 to more than 42,000 individual and corporate taxpayers.