‘Taxation bills should allow municipalities to get share for operations, utilities’

Tinian Mayor Edwin P. Aldan said Friday the House of Representatives’ five revenue-generating bills that are before the Senate for action should contain provisions to supplement any budget shortfall.

In his testimony during the Senate Fiscal Affairs Committee public hearing on Tinian, Aldan said language must be included in the proposed bills allowing all municipalities to acquire some revenues to address the lack of funding for operations and utilities within municipalities.

Aldan, who was not available during the public hearing held in the Tinian Public Library, had his testimony read by Tinian Municipal Council vice chair Anna Marie C. San Nicolas.

One of the bills discussed was House Bill 23-07, with proposed Senate substitute, to amend the Commonwealth Code on taxing tobacco products.

The second was House Bill 23-41, HD1, to establish an excise tax for betel nut/areca nut and lime mix/afok/or bweesch.

The third was House Bill 23-68, HS1, to impose a 10% ad valorem tax on private individuals purchasing vehicles from dealerships or private parties outside the CNMI, excluding businesses or commercial entities.

The other bill discussed was House Bill 23-78, HS1, to increase the tax on soft drink and alcoholic beverage containers.

The last legislation was House Bill 23-74, HD1, to impose an additional 3% tax on the yearly gross revenues of construction activities in excess of $250,000.

Sen. Donald M. Manglona (Ind-Rota), who chairs the committee, also invited to testify Tinian Municipal Council chair Joseph E. Santos, Department of Finance-Tinian resident department head Melissa Mendiola, Department of Commerce-Tinian resident department head Mary Susan Perez, and Tinian Chamber of Commerce president Philip M. Long.

Manglona said yesterday that the committee will also hold public hearing on the bills on Rota around first week of February.

Aldan’s testimony was more general as opposed to the specific bills themselves, but he found it disconcerting that these proposed bills have no precise estimates or projections on the total revenue the CNMI will receive from the proposed taxes.

Aldan said thorough research and revenue projection must be conducted to ensure that the tax increases are aligned with the CNMI’s current circumstances and revenue.

He said the community relies on a prudent allocation of funds and any tax changes must be thoroughly vetted for the well-being of citizens.

Aldan said that, as mayor, he must ensure that the best interests of the community are taken into account when making decisions regarding taxation and budget allocation.

Aldan said he understands that the bills are intended to raise revenue for the CNMI general fund to supplement a shortfall in operational funding for the fiscal year 2024 budget and possibly fiscal year 2025.