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Tax incentives for Tinian businesses
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Posted on Jun 25 2008
Dear Rep. Edwin P. Aldan:
[I]Buenas yan kon respeto.[/I] I am writing this letter to your attention to ask you to introduce a House bill that will grant tax incentives to Tinian & Rota businesses that services sales with merchant machines. I don’t have the figures on how many here on Tinian are carrying credit/debit cards, but I do know that it is very convenient if majority, if not all, of the businesses have merchant machines. I for one do not carry cash most of the time and it is just inconvenient when I go back to Bank of Guam’s ATM, only to be charged extra because my card is from another bank. I have also contacted vendors regarding this issue and one of them told me that he is entertaining the idea but it is pending because of fees being imposed by the bank. It is of my opinion then that the bill should include the following:
The incentive shall strictly be in reference to any and all merchant fees being imposed by the bank.
The incentive shall apply to any businesses (sole or corporations) who have been in operation for three years or more (this is in fairness to those who have been in business for some time)
The only time to claim the tax credit is when filling their annual tax report, provided that if no tax is assessed, then the credit shall be applied to the following first quarter.
The reimbursement/credit computation shall be 100 percent for locally-owned businesses and 50 percent for non-locals.
I understand that item No. 4 probably has constitutional question in terms of discrimination, so let me state it clearly that that is not my intention. If Public Law 11-87 can make the stand, why not my suggestion? However, if someone will still challenge the legality, then by all means, I’m in support of equal computation.
Lastly, to be honest with you, this was one of my idea since before the 2007 mid-term election and I was to share this with Mr. Anthony U. Hofschneider immediately upon taking office. However, because of the economic hardship the CNMI is facing, I don’t care who gets the credit. I feel that anything that will help businesses in the CNMI weather this economic crises shall be an overriding factor over any personal opinion.
[I][B]Estevan P. Cabrera[/B] Carolinas Heights[/I]
