Aldan: Military projects should be assessed developer’s tax

It is the Tinian leadership’s position that most, if not all, military-related construction activities on the island, such as the divert airfield project, should be assessed a developer infrastructure tax, according to Tinian Mayor Edwin P. Aldan.

In a letter to Public Works Secretary Ray N. Yumul, Aldan asked for help to ensure that the developer’s tax is being enforced and collected on Tinian projects.

Yumul told Saipan Tribune yesterday that he has asked acting DPW Building Safety official Yvonne B. Tenorio to get him a report and that he will do a follow-up today, Thursday.

Aldan said military activities on Tinian have resulted in numerous construction activities and infrastructure developments that should have generated additional revenue for the island.

Although the Commonwealth Code specifically exempts the U.S. government from any liability to pay any taxes, contractors of the United States are not covered by this exemption, Aldan said.

Because the payment of this developer’s tax is dependent upon the “building safety officials’” verification of the total project cost, which falls within the purview of Yumul’s authority, Aldan said he is asking for Yumul’s help to verify if this tax is being properly assessed.

Aldan also asked for Yumul’s assistance in providing the Tinian leadership with an accounting of all developer’s tax collected from 2018 to date.

The U.S. military’s biggest project on Tinian right now relates to building a divert airfield, which will allow the U.S. Air Force to use Tinian as an alternative landing site or a divert airfield for its planes in case Anderson Air Force Base in Guam is inaccessible due to war or calamities.