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World Resort re-applies for qualifying certificate
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Posted on Aug 23 2005
World Resort Saipan has given up its existing qualifying certificate to pursue a new one with larger tax benefits.
In a public notice, the Commonwealth Development Authority said that World Resort’s new application covers an investment of $25.5 million, almost double the cost of its original expansion plan.
World Resort is seeking 100-percent business gross revenue tax abatement, 100-percent corporate income tax rebate, and 100-percent tax abatement for hotel occupancy that exceeds 2004 level.
The hotel wants to avail of the tax relief provided by the Investment Incentive Act of 2000 over a period of 25 years.
On Aug. 31, 2004, Gov. Juan N. Babauta signed a qualifying certificate granting World Resort total tax rebates of $4 million over a 10-year period. This was based on the hotel’s February 2004 expansion plan, which had an estimated cost of $14 million.
However, the hotel subsequently decided to make additional investment and expressed its intent to CDA to amend its qualifying certificate.
Since no law allows CDA to amend an already issued QC, World Resort has opted to cancel the original and redo the entire application process, even though it could take at least four months to process.
World Resort explained that maintaining a consolidated qualifying certificate would be more convenient than having to comply with the requirements of two separate QCs.
The hotel proposes to invest approximately $25.5 million to renovate and expand its resort hotel located in Susupe. The project includes the construction of a water park, additional rooms, a 25-meter national standard race pool, a day care center for children, a outdoor stage, and other facilities.
