Govt tax revenues declining since FY99

Total taxes collected by the CNMI government peaked in fiscal years 1996, 1997, and 1998 at more than $200 million—nearly 700 percent higher than what it was getting a decade before. Since FY 1999, however, the numbers have been steadily going down to an average of $176 million a year.

Department of Finance data showed the government collected less than $50 million in FY 1986 and FY 1997 ($28.7 million $37.3 million, respectively); and less than $100 million in FY 1988, 1989, and 1990, which showed a total of $62.2 million, $73 million, and $90 million, respectively.

In the next five years, business gross revenues and total taxes breached the $100 million mark, beginning at $126.4 million in FY 1991, $131.3 million in FY 1992, $122.1 million in FY 1993, $134.9 million in FY 1994, and $134.9 million in FY 1995.

In FY 1996, this went up to $191 million, then $200.8 million in FY 1997, and $200 million in FY 1998.

From FY 1999 to the present, government revenue from taxes showed a declining trend, with $187.8 million in FY 1999, $185 million in FY 2000, $178.5 million in FY 2001, $165.6 million in FY 2002, $165 million in FY 2003, and an unaudited $178 million in FY 2004.

Total taxes includes gross business revenue tax, personal and corporate income taxes, excise taxes, customs certification user fees, fuel tax, beverage container tax, hotel tax, and other taxes such as bar and beautification taxes.

From $13 million in FY 1986, the BGRT rose to $78.6 million in FY 1997. In the unaudited FY 2004 report, BGRT was at $55.7 million.

As of July this year, Finance Secretary Fermin M. Atalig said that the BGRT totaled $53 million for FY 2005.

Hotel taxes grew from $1.4 million in FY 1987 to $10.5 million in FY 1992 and $10.8 million in FY 1997. Beginning FY 2001 to FY 2004, hotel taxes went down, ranging from $5 million to $6 million.

From $3.3 million in FY 1990, user fees went up to $39.3 million in FY 1999 and then dropped to the $30-million level from FY 2001 to FY 2004.

Personal and corporate income taxes totaled $6.3 million in FY 1986. It rose to $62.5 million in FY 1999 and an average of $50 million from FY 2001 to FY 2004.

Excise taxes went up from $5 million in FY 1986 to $29.2 million in FY 1997 and lowered to an average of about $20 million from FY 1998 to FY 2004.

In terms of total fees, services, and other revenues, the CNMI government’s collection increased from $9.3 million in FY 1986 to $41.7 million in FY 1997. From FY 1998 to FY 2004, the numbers went down to $30 million in FY 2000, $35 million in FY 2001, $30 million in FY 2002, $32 million in FY 2003, and $36 million in FY 2004.

Total fees and services include amusement machine license fees, hospital charges, lottery commission, and other licenses, fees, and revenues.