Guam committee continues hearing on Bill 11‑38 to roll back business privilege tax to 4%

Senator Christopher M. Duenas, chairman of the Committee on Finance and Government Operations, continued a public hearing July 7 on Bill 11‑38, a measure introduced by Senator Sean Gomitata that would roll back the business privilege tax (BPT) from 5 percent to 4 percent.

The proposal drew hours of testimony from small-business owners, trade groups and the Office of Finance and Budget (OFB). Supporters said the rollback would return money to businesses that could be used to raise wages, reinvest in stores and facilities, and make Guam more competitive with off‑island and online sellers. OFB warned that an immediate rollback during fiscal year 2025 would create a multi‑million dollar shortfall for the government and would reduce set‑aside funds tied to hospital appropriations and the statutory reserve.

OFB presenter Steve Guerrero told the committee that OFB’s FY2025 numbers show a 1 percentage‑point reduction in the BPT would equal about $78,197,299 of BPT receipts and would lower the total general fund available for appropriation by about $71,889,748. Guerrero said the cut would reduce the statutory appropriation to Guam Memorial Hospital by…