{"id":425332,"date":"2024-11-22T14:00:00","date_gmt":"2024-11-22T14:00:00","guid":{"rendered":"https:\/\/www.saipantribune.com\/?p=425332"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-29T14:00:00","slug":"DPW-urged-to-enforce-2-developer-s-tax-on-Tinian","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/DPW-urged-to-enforce-2-developer-s-tax-on-Tinian\/","title":{"rendered":"DPW urged to enforce 2% developer\u2019s tax on Tinian"},"content":{"rendered":"

Tinian and Aguiguan Mayor Edwin P. Aldan is urging the Department of Public Works to take immediate steps to assess and enforce the developer\u2019s tax on all relevant construction projects on Tinian.<\/p>\n

In a letter to DPW Secretary Ray Yumul dated yesterday, Nov. 21, Aldan highlighted the importance of enforcing the developer\u2019s tax, a 2% levy on construction projects related to military developments on Tinian, mandated by CNMI law.<\/p>\n

\u201cI am writing to bring to your attention the critical need to assess and enforce the developer\u2019s tax, as mandated by CNMI law, on construction projects related to military developments on Tinian. This tax, which imposes a 2% levy on developers, represents a significant source of revenue that our municipality must capitalize on to address pressing infrastructure needs,\u201d wrote Aldan.<\/p>\n

Yumul confirmed receipt of Aldan\u2019s letter and said he\u2019s cognizant of his concerns.<\/p>\n

\u201cI did have conversations with Mayor Aldan on multiple occasions regarding this. I told him that I would look into the matter,\u201d he told Saipan Tri<\/em>bune.<\/em><\/p>\n

Aldan mentioned in his letter that the revenue from this tax is crucial for addressing infrastructure needs on Tinian, especially given the significant military activity and construction projects taking place.<\/p>\n

\u201cThe developers\u2019 tax, set at 2%, is designed to be collected on the cost of development projects, contributing to the funding of public infrastructure and improvements that are necessary to support the growth and changes brought by such developments. As you are aware, Tinian is currently experiencing considerable military activity, including projects such as the Divert Airfield at West Field and the proposed Commonwealth Joint Military Training activities. These projects involve extensive construction efforts, impacting our island\u2019s infrastructure and resources.\u201d<\/p>\n

According to Aldan, despite these projects\u2019 large scale and cost, the municipality has not yet benefited from the tax revenue.<\/p>\n

\u201cDespite the immense scale of these military construction activities, our municipality has yet to benefit from the developer\u2019s tax revenue. The Divert Airfield project alone, involving the construction of critical facilities and infrastructure upgrades, represents a multi-million-dollar investment. Additionally, the proposed CJMT project will bring even more significant developments. Based on preliminary cost estimates, the total expense of these military construction projects is projected to reach hundreds of millions of dollars. Assessing a 2% tax on these expenditures could yield substantial revenue for Tinian.\u201d<\/p>\n

Furthermore, he wrote that enforcing the collection of this tax is essential to generating the revenue needed for maintaining and upgrading roadways, enhancing water resource systems, and supporting the demands placed on the island\u2019s infrastructure.<\/p>\n

\u201cIt is imperative that we enforce the collection of this tax from contractors engaged in these military construction projects. The revenues generated are urgently needed to address our island\u2019s infrastructure challenges, particularly in maintaining and upgrading our roadways and enhancing our water resource systems. As Tinian continues to be a focal point for strategic military initiatives, our community must have the means to support the demands placed on our infrastructure and ensure the well-being of our residents.\u201d<\/p>\n

<\/p>\n

Tinian and Aguiguan Mayor Edwin P. Aldan said the island is currently experiencing considerable military activity, including projects such as the Divert Airfield at West Field and the proposed Commonwealth Joint Military Training activities.<\/p>\n

-CONTRIBUTED PHOTO
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