New $15 hotel fee on July 1

Effective July 1, operators of hotels and similar facilities in the CNMI are required to collect a new $15 fee on tourists or transient occupants, and the fees collected are to be turned over to the Department of Finance on or before the 20th day of the succeeding month to go toward tourism and environmental programs.

This is the result of a new law that Gov. Benigno R. Fitial signed on Monday.

The government expects to generate some $6 million in revenues from this law to help tourism and environmental programs.

House Speaker Eli Cabrera’s (R-Saipan) House Bill 17-290, HD1, SS1 is now Public Law 17-75. This is the first major revenue-generating bill that became law in the 17th Legislature. Moreover, this only amends the two previous versions that were met with concerns by federal and local agencies.

Under the new law, a $15 fee is collected from transients who pay for lodging in a room of a hotel, lodging house, motel, resort motel, apartment, apartment motel, rooming house, condominium, or similar facility located in the CNMI.

The fee is to be assessed one time for each visit or trip to the CNMI.

Funds derived from the $15 fee will be deposited into a revolving fund administered by the Department of Finance and remitted to MVA. These funds will then be used to build, equip, improve, and maintain projects, agencies, and facilities promoting recreation and tourism.

Regardless of the total fees collected, Rota and Tinian’s share of that fee will remain the same at $200,000 each island annually, to be used for charter flight tourism incentives and promotional programs.

The two previous pieces of legislation charged a $15 travel fee among tourists from non-U.S. destinations but these were found to be non-compliant with federal laws. The two previous laws required the airlines to collect the fees. Marianas Visitors Authority managing director Perry Tenorio earlier told lawmakers that any “head tax” on international travel falls under the jurisdiction of the federal government.

Moreover, the previous bills intended to provide incentives to travel agencies that bring in more tourists from Asian countries to the CNMI and charge passengers from these non-U.S. destinations a $15 travel promotion fee.

The governor also signed Rep. Ralph Demapan’s (Cov-Saipan) H.B. 17-293 into Public Law 17-74.

This new law designates and counts $5 million appropriated to the Department of Public Health toward the state share of the required matching funds for Medicaid reimbursements to the Commonwealth Healthcare Corp.

Fitial, at the same time, returned HB 17-17, HD2, SS1, SD1, CCD1 to the House, at the request of the speaker to make more amendments to it.

This bill strengthens penalties for minors consuming alcoholic beverages, and imposes stiffer fines for persons or establishments who provide and sell alcoholic beverages to minors.