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No local taxes for CNMI artists
Gov. Ralph DLG Torres has signed into law a bill that exempts local artists from paying taxes.
During the 37th Annual Flame Tree Arts Festival proclamation signing at the Pedro P. Tenorio Multi-Purpose Center last Thursday, Torres signed House Bill 20-42 into Public Law 20-56.
The new law, authored by Rep. Angel Demapan (R-Saipan), exempts local fishermen as well as local artists who are registered with the Commonwealth Council for Arts and Culture from paying taxes as long as they receive a gross income below $20,000.
Artists who receive over $20,000 will only pay a tax of 1 percent.
Torres said the Flame Tree Arts Festival proclamation signing was the perfect time to sign the bill into law after it was proposed nearly nine months ago.
“This is the perfect timing [to sign this bill] so they [local artists] can showcase their work tax-free,” said Torres.
Torres believes that artists should be exempted from paying taxes because many local artists produce art not as their main source of income, but because of their passion for culture.
“People who create art really love… it’s just something they love to do so we should incentivize them by exempting them from taxes,” he said.
As an artist himself, Department of Community and Cultural Affairs Secretary Robert Hunter said this takes a lot of weight off the shoulders of local artists.
“You know that artists don’t make that much money, so this is a big relief…you can’t beat that,” he said.
Hunter said this is only the first step in improving the livelihood of all local artists in the CNMI.
Demapan, the author of H.B. 20-42, said that the bill includes all artists and any form of art and the only requirement is to make sure to register with the CCAC.
