Previous Story
Tax exemptions for computers removed
Gov. Ralph DLG Torres signed into law late last month a bill to remove the tax exemptions for personal and office computer products.
The bill also authorizes the secretary of the Department of Finance to classify new products for taxation purposes.
House Bill 19-115, now Public Law 19-46, calls this tax exemption an “unnecessary provision.”
It says that the tax exemption for personal and office computer equipment was originally intended to keep prices of such items at an affordable rate for consumers.
“However, the daily use of computers have become part of our daily lives, but most importantly the abundance of such technology has allowed a significant reduction in costs compared to what it used to be,” the bill states.
The bill, offered by Rep. George N. Camacho (R-Saipan), says such a tax exemption on these items has exceeded its need.
The exemption also further prevents the Commonwealth from collecting much needed revenue generated from these sales, the bill states.
The bill says the Legislature found that these amendments were needed to existing statue through consultation with the Division of Customs, under the Department of Finance.
