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Committee approves excise on imported betel nut and lime, lowers levy to $3 per pound
Summary
The committee adopted a floor amendment to House Local Bill 24-27 to establish an excise tax on imported betel (areca) nut and lime and reduced the central levy from $5 to $3 per pound; the measure allows local senatorial districts to impose additional amounts and directs most proceeds to health programs.
The House Standing Committee on Ways and Means approved a floor amendment and recommended a committee report on House Local Bill 24-27 to establish an excise tax on betel (areca) nut and lime imported into the Commonwealth.
Rep. Marissa R. Flores, the bill’s sponsor and floor leader, offered a floor amendment that narrowed the bill’s text to apply to betel nut and lime imported into the Commonwealth and reduced the central excise from $5 per pound to $3 per pound. She said the reduction was intended to leave room for senatorial districts to enact complementary local fees so part of the revenue can remain with island governments.
Flores noted the bill intends that the Commonwealth Health Center (CHCC) continue to receive the large share indicated in the original bill; during the hearing she stated CHCC would “still be afforded their 90% as indicated in the original bill.” Several members discussed benefits for local farmers—particularly on Tinian—and the need for local enabling legislation in each senatorial district to set district-level amounts.
The floor amendment was offered, seconded and adopted by voice vote. The committee then approved a motion to adopt House Local Bill 24-27 in draft form and to draft a committee report for transmittal to the full House; the motion was adopted. The committee also acknowledged a support letter from the Saipan Chamber of Commerce attached to the committee record.
Next steps: Staff will prepare a committee report reflecting the $3-per-pound central excise, language permitting district-level local levies, and the attached letter of support from the Saipan Chamber of Commerce.
