Guam small business owners voice concerns over new sales tax legislation

The 38th Guam Legislature convened on May 28, 2025, to discuss significant legislative measures impacting small businesses on the island. Central to the meeting was a proposed bill that has sparked considerable debate among lawmakers and business owners alike.

During the session, a small business owner expressed support for the bill, emphasizing that it should not be viewed as an additional financial burden. Instead, he argued that the visible sales tax included in the bill would help clarify pricing for consumers. He urged fellow legislators to consider amendments that would prevent any hidden sales tax implications, reinforcing the need for transparency in pricing.

Conversely, concerns were raised by another legislator regarding the potential negative impact of the bill on small businesses, which constitute about 90% of Guam's economy. This lawmaker highlighted the struggles faced by local businesses, citing recent closures of popular establishments. She expressed disappointment that the bill does not provide exemptions or support for smaller enterprises, particularly those earning below a certain threshold. Her remarks underscored the challenges of maintaining profitability in a competitive market, where many business owners work tirelessly to meet their financial obligations.

The discussion also included inquiries about the rationale behind repealing previous legislation related to the bill. Lawmakers sought clarification on the motivations for such changes, indicating a desire for a deeper understanding of the bill's implications.

As the session concluded, the future of the proposed legislation remained uncertain, with calls for further examination and potential amendments to better support Guam's small business community. The outcome of this bill could significantly influence the operational landscape for local entrepreneurs, making the ongoing discussions critical for the island's economic health.