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Amendment to full land rebate approved
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Posted on Dec 04 2000
Gov. Pedro P. Tenorio on Friday approved an amendment to a new law that allows the government to pay full rebate to the tax paid by landowners whose properties are acquired for public land use.
Public Law 12-31 cleared potential error in PL 12-16 that Finance Sec. Lucy DLG Nielsen raised to the governor when he signed the latter law in August.
The amendment clarified a provision in that law with respect to the determination of the rebate offset base and rebate offset amount on tax paid to the government from the sale of private land, according to Mr. Tenorio.
Its main sponsor, Rep. Heinz S. Hofschneider, had immediately filed an amendment to PL 12-16 to address the administration’s concerns.
The change simply specifies that the rebate covers 100 percent of the rebate offset base of the tax on the amount paid for the land by the government.
Landowners whose lands were bought by the government in cash are to be rebated the full amount of the tax they paid in the transaction based on the recent law.
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.
PL 2-16 corrects the system by allowing a 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.
Meanwhile, Mr. Tenorio also signed Rota Local Law 12-4 that appropriates $24,000 from the license fees generated from pachinko slot and poker gaming machines on the island for programs in the municipality. (BS)
