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Full tax rebate on land compensation OK’d
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Posted on Mar 22 2000
A measure passed by the House of Representative yesterday will seek a 100 percent rebate on taxes paid on cash compensation involving land transaction between the government and private landowners.
Offered by Rep. Heinz S. Hofschneider, House Bill 12-131 will compliment two existing laws that set the mechanism for land exchange and compensation by the government for private properties.
But landowners agreeing to buy out of their lots instead of land exchange are required to pay taxes to the CNMI, thereby getting an unfair deal compared with those who want to be compensated with another property.
The measure will further remedy this inequity by providing a 100 percent tax rebate on taxes paid on cash compensation received from the sale of private land to the government on or after January 1, 1994.
Meanwhile, the House also passed legislation re-appropriating over $131,000 for waterline installation in the southern part of Saipan.
The funds will come from the allocation given to Waterline improvement project for Fina-Sisu and purchase of well pumps, motors and electrical spare parts, according to the bill offered by Rep. David M. Apatang.
According to the Commonwealth Utilities Corporation, the amount is not sufficient to replace existing waterlines within that village and that its water problem has been solved.
Instead, CUC Executive Director Timothy P. Villagomez recommended that the funds be reprogrammed for use in the waterline installation for the villages of Koblerville, As Gonno, Obyan and Katmelo.
The House also felt that residents of those village are in need of such improvement as they have been awaiting improved water services for the last few years.
Both measures are now up for Senate action.
