Thursday, February 11, 2010

Cruz eyes tax revenue from buildup projects

Cruz eyes tax revenue from buildup projects

Friday, 05 February 2010 00:59
by Zita Y. Taitano | Variety News Staff

VICE speaker BJ Cruz is once again calling for Congresswoman Madeleine Bordallo’s attention regarding more issues concerning the military’s draft environmental impact statement.

Cruz in reviewing the document would like assurances from Bordallo and the U.S. Congress that Guam would be able to receive the maximum amount in local tax revenues from the buildup when it begins.

Art Ilagan, Department of Revenue and Taxation director, indicated in a recent interview that Guam could be making at least $20 billion from construction done on Guam in military realignment construction projects.

In a letter he sent to Bordallo yesterday, Cruz pointed out the government of Guam’s ability to collect tax revenues from the buildup and requested for what he termed “special language in the 2012 National Defense Authorization act to support GovGuam’s collection efforts.”

He also asked the congresswoman to introduce amendments requiring all contract income related to buildup projects be determined as possession source income and for DOD to cooperate with local tax officials.

“Since it is we who will shoulder the burden of hosting the largest military transfer of hardware and personnel in decades, it is only fair that steps be taken at the federal level ensuring that the windfall from contracts related to this buildup enjoy the full scrutiny of local tax enforcement,” said Cruz.

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