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Auto dealer welcomes Yumul bill
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Posted on Jan 09 2009
One of the auto dealerships on Saipan is supporting Rep. Ray Yumul’s bill that seeks to amend the Commonwealth Code to allow automobile dealers to pay excise taxes on the importation of new vehicles only upon first sale or distribution in the CNMI.
“Triple J Motors appreciates the efforts of the legislature to help during these challenging times. Passage of this bill will allow us manage our cash flow more efficiently while making it easier to operate,” said the company’s general manager Randy Steele.
Yumul introduced last Dec. 20 legislation that seeks to alleviate the plight of the CNMI’s automobile dealers which have been experiencing steep decrease in new automobile sales over the past few years.
The December 2008 report from the Commonwealth Auto Dealers Association, which Triple J Motors is a member along with Microl Corp. and Joeten Motors, showed that the islands’ auto dealerships experienced a 5.85-percent decrease in new car sales last year as it sold 595 units compared to 632 in 2007.
“Anything that helps the dealers helps the organization as a whole,” said Steele.
Yumul’s Bill 16-203 seeks to amend the Commonwealth Code to allow automobile dealers to pay excise taxes on the importation of new vehicles upon first sale or distribution in the CNMI.
“They (auto dealers) are asking for momentary relief so that we can allow them to bring it (new vehicle) put it out for sale and when it does sale that’s when we collect the excise tax and then of course the business groups revenue tax will be collected after these vehicles are sold,” said Yumul, who chairs the House’s Committee on Ways and Means.
The lawmaker said his legislation does not impact the general fund when it comes to taxes because he is not saying that the government will not collect the taxes.
