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Guam lawmakers debate rollback of business privilege tax and revenue trade-offs
Summary
Lawmakers and administration officials debated a proposed rollback of the Business Privilege Tax (BPT), how different business types are taxed (gross vs. net), and revenue-modeling showing a $40 million–$80 million annual gap depending on rollback level.
Lawmakers at the Committee on General Government Operations and Appropriations heard extended questioning and analysis about Bill 11-38 (the substitute BPT rollback), including how the tax is applied to different business types and how revenue would change under a 4% or 4.5% rate.
The committee’s discussion centered on what businesses are taxed on gross receipts versus net income, and on the projected revenue loss if the BPT is cut from the current 5% rate. Senator Tina Rose Muña Barnes and Senator Mary Perez pressed Department of Revenue and Taxation staff for legal and technical distinctions and for a line-by-line calculation of impacts by taxpayer band.
The administration and DRT officials told the committee that most BPT categories are measured on gross income or gross proceeds of sale…
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