Several officials of the Saipan Chamber of Commerce met with Finance Secretary Fermin Atalig on Dec. 28, 2004 to discuss revenue streams and collection issues that affect the CNMI community.

The meeting participants discussed the efficient collection of the Business Gross Revenue Tax, as the chamber continues to be concerned about tax amnesty legislation that disenfranchises law-abiding taxpayers.

Chamber representatives informed Atalig of the equalization tax†system used by 38 states, wherein businesses are sent tax bills based on the type of business, location, and previous business activity. The business entity then substantiates the correctness of the tax bill with legitimate audited financial statements.

ìThe chamber sees this as an opportunity to level the playing field among BGRT taxpayers and ensure that our community receives all due tax monies,î the group said in a statement.

The chamber will be sending Atalig copies of state legislation for his information and review. Atalig himself reported that he has been coordinating efforts with Department of Commerce Secretary Andrew Salas to share the enforcement and application of local tax laws, a move that the chamber said it ìenergetically endorses.î

The Finance Department also faces a number of difficulties in collecting fees and taxes from poker machines. Under current law, each machine may have a different due date for licensing fees, which create an undue hardship on Finance employees and increases the difficulty in collecting fees. The SCC is asking the Legislature to act swiftly on legislation currently in a Senate committee that seeks to change poker licenses from quarterly payments to annual payments.

ìSuch legislation will help our community and local programs that remain at a standstill due to lack of funding,î the association said.

Part of the conversation centered on the possible privatization of the Commonwealth Health Center and the benefits that would be gained. It was agreed that a good first step would be the privatization of the financial aspects of hospital management, specifically the billing department. Currently bills are often sent to insurance companies so late that beneficiaries are left liable for large bills due to the delay in processing. Additionally, much of the over $100 million in receivables are from individuals and corporations that have the ability to pay but have lapsed due to delayed billing issues. The chamber is concerned that all collections are made so that CHC can deliver good medical services.

Chamber leaders have expressed that “CHC has a huge revenue leak that must be capped for the sake of the entire CNMI community.î

The chamber has been promoting the privatization of some governmental agencies as a way to increase efficiency and effectiveness, and reduce the cost of services to businesses as well as the general public.