Previous Story
CDA recommends 10-year rebates for World Resort
|
Posted on Oct 31 2005
The Commonwealth Development Authority has recommended a 10-year tax rebate assistance to Saipan World Resort under the government’s qualifying certificate program.
CDA board chair Tom Glenn Quitugua said yesterday that the tax incentive would translate to about $6 million over 10 years.
“Our recommendation is to grant them QC. We’re giving them 10 years of rebates. This is our proposal. The final decision comes from the governor,” said Quitugua.
He said CDA board members sanctioned the QC approval last Friday, in consultation with the Division of Revenue and Taxation.
The incentive, he said, was computed based on the hotel’s investments and “regular hotel standards.”
Quitugua described the 10-year incentive as “conservative” and “fair enough.”
“We’re very careful. It’s pretty conservative. I hope that the governor accepts our recommendation,” said the chairman.
Saipan World Resort has applied for 100 percent tax abatement from business gross revenue, corporate income tax, and hotel occupancy tax over 25 years. In return, the hotel said it would undertake a $25.5 million expansion project.
World Resort had actually been granted $4 million worth of tax incentives for 10 years under its 2004 application. It gave up the existing QC and redid the entire application process in view of additional investments this year.
It said the new expansion program includes the construction of a water park, additional rooms, a 25-meter national standard race pool, a day care center for children, an outdoor stage, and other facilities.
Meantime, Quitugua said that CDA is still evaluating the QC application of We Manage Calls Inc., which plans to set up a call center on Saipan.
The company, represented by Nauru Building owner Erick Van Der Maas, aims to invest $2 million for the business.
We Manage Calls Inc. is asking the government for a 10-year tax relief from the excise tax in the first three years, Business Gross Receipt Tax for five years, and from corporate tax for 10 years.
