Mark Brown: We pay more than our fair share
Saipan Vice Speaker Janet Maratita and Rep. Alice Igitol have introduced a bill that would levy a 5 percent tax on gaming revenues at Best Sunshine Live, a temporary casino on the island, and Imperial Pacific Resort, its permanent successor, now in development by Imperial Pacific International.
According to Marianas Variety, the lawmakers say the industry to date “is largely untaxed, and the time has come to tax it in a fair and reasonable manner.”
Imperial Pacific has contested the tax, saying it has provided $70 million in government revenue since it won an exclusive casino gaming license on island. The company’s ratings were recently downgraded by Fitch and Moody’s and is currently facing lawsuits from vendors and a former employee.
The lawmakers say House Bill 20-31 would retire the deficit in the Commonwealth of the Marianas Islands, of which Saipan is a part.
Last October, Best Sunshine International CEO Mark Brown CNMI lawmakers he wanted to “answer those who say we don’t pay taxes.”
“Besides our $15 million annual license fee, for which four years have been paid already for $60 million, as soon as we start construction on the permanent resort we pay $20 million in tax on top of the $15 million. The quicker we move forward, the more taxes we pay. As our revenue grows, we’ll pay more in taxes.”
The Saipan Tribune reported that a new measure introduced by Representative Blas Jonathan Attao is approved would amend the local casino law and establish a casino gross revenue tax Account. According to Attao, the current legislation only sees a segment of the licensing fee from casinos used to restore a 25 percent decrease in pension. Attao says the $15 million annual licensing fee paid by operators is not enough to cover the reduction in pension. This amount has been estimated at $17 million a year. Of the $15 million in fees, only $10 million goes towards the pension reduction problem.
Attao’s proposed tax account would provide $2 million each for the islands of Tinian and Rota and $1 million for Saipan each fiscal year.
