UNDER NEW LAW Landowners to get full rebate

Landowners whose lands were bought by the government in cash are expected to be rebated the full amount of the tax they paid in the transaction following the signing of a new law by Gov. Pedro P. Tenorio.

The move came amid lawmakers’ concerns over potential unfair dealing when the government acquires a private land for right-of-way and other public use.

Under the normal practice, landowners who opt for land exchange do not have to pay taxes in connection with the transaction, while those who agree on cash compensation are taxed.

Public Law 12-16 corrects the system by allowing a 100 percent 100 percent rebate on taxes paid on cash compensation. This compliments two existing laws that set the mechanism for land exchange and compensation by the government on private lands.

In signing the law, Mr. Tenorio asked the Legislature to clarify some provisions that may lead to serious misinterpretation as well as potential liability to the government.

Its main sponsor, Rep. Heinz S. Hofschneider, immediately filed an amendment to PL 12-16 that was passed during the House session last Friday to address the administration’s concerns.

The change will simply specify that the rebate covers 100 percent of the rebate offset base of the tax on the amount paid for the land by the government.

Inequity

According to the governor, finance officials had also raised fear that making the law retroactive could also impact the cash resources.

He did, however, agree to sign the measure after Mr. Hofschneider assured that necessary changes would be made to hasten implementation of the law. The amendment is now up for Senate voting.

Legislators underscored the significance of their action, noting that residents had appealed to them to remedy the existing inequity, especially since public lands are getting scarce and they have no choice to accept cash compensation.

PL 12-6 covers land transactions on or after January 1, 1994. It is not known how much money will have to be raised to pay out the rebates.

At present, the government is trying to identify extra funds to compensate landowners who have not received a single penny despite the fact that their properties are now for public use.

House Ways and Means Committee chair Rep. Antonio M. Camacho has estimated at least $36 million will be needed to meet these obligations to hundreds of families on the islands who handed over their lands to the government.

Initial projections, however, have placed the amount to between $70 million to $80 million from dealings done as far back as early in the 90’s, involving more than 200 properties.

Other laws

Meanwhile, the governor signed two other bills into law last week, one revising the much-delayed street-naming project on Saipan, and the other concerning fishing methods that will be allowed in the CNMI.

With Saipan Local Law 12-5, recommendations made by the Carolinian community calling for more names of the streets that are reflective of its culture are now going to be incorporated.

The project, which has been derailed for over a decade, hit a snag last year when former Rep. Melvin Faisao demanded changes to the master map after accusing the Saipan Mayor’s Office of ignoring the Carolinians’ proposal.

PL 12-14, on the other hand, allows the Department of Lands and Natural Resources to enforce stricter rules against fishing in CNMI waters in order to safeguard marine resources.

“The rapid depletion of marine life around our islands is a serious concern to all of us, including our youth who I understand, have passed legislation similar to this bill. This legislation echoes their concerns,” said Mr. Tenorio in signing the Fair Fishing Act of 2000.