Senate fiscal committee presses for fixes to bill taxing short‑term rentals

Chairman Hofschneider opened discussion Oct. 7 in the Senate Fiscal Affairs Committee on House Bill 24‑32, the Transient Accommodation Act, which would establish a tax on transient accommodations and regulate short‑term rentals across the Commonwealth.

The bill would “modernize and strengthen our tax policy on hotel accommodation tax,” Director Daniel Alvarez of the Division of Revenue and Taxation said, but he warned that “DRT lacks the capacity in regards to the global hosting platforms” and that the department does not yet have the systems to accept collections from large online platforms. He urged time to refine the bill and build infrastructure so collection and reporting are practical.

The Marianas Visitors Authority (MVA) and the Saipan Chamber of Commerce urged passage to capture revenue they say currently escapes the tax system. Jameka Tyrone, managing director of the Marianas Visitors Authority, said the measure “modernizes the outdated hotel occupancy tax and ensures that all accommodations used by visitors…are captured in our tax system.” She said capturing revenue will help marketing, restore flight service and support…