Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Revenues topic
No spam. Unsubscribe anytime.
May tax filings boost Guam revenues; lawmakers consider returning Slaku reserves to rainy day fund
Summary
BBMR reported a May filing surge that turned an April shortfall into a $62.2M gross general‑fund collection and an estimated $33.5M net after special‑revenue offsets; legislators discussed restoring roughly $9.9M held for Typhoon Slaku to the rainy day fund and weighed whether to hold BPT at 4.5% for FY27.
Chair Senator Christopher Duane convened the Guam Legislature’s Special Economic Service meeting to review FY2026 revenue tracking and FY2027 assumptions. BBMR Director Lester Carlson told the committee that the governor’s decision to move the income tax filing deadline from April 15 to May 15 because of Super Typhoon Slaku produced a significant timing effect: May filings added roughly $47 million above expectations in individual, corporate and withholding categories, lifting gross general‑fund receipts in the most recent snapshot to about $62.2 million. After netting out special revenue fund shortfalls (legislature IT, highway fund, property tax shortfalls, healthy future fund, tourist attraction fund), Carlson said the preliminary net position is about $33.5 million.
Why it matters: Carlson emphasized that the May uptick largely reflects timing from the extended deadline and not a permanent structural windfall, but he said historical patterns give confidence that some deferred items (notably property taxes) will ‘‘self‑rectify’’ as payments are completed. Carlson also told senators that roughly $9.9 million of typhoon response appropriations remain held in reserve and that available funds may be eligible to return to the rainy day fund once final expenditure reports are produced.
What officials said: DOA Director Edward Burn backed BBMR’s recommendation to restore any unspent Slaku appropriation to the rainy day fund, noting investor confidence improves with stronger reserves. Carlson warned that the executive FY27 budget was predicated on keeping the business privilege tax (BPT) at 4.5 percent; a statutory 0.5 percentage point reduction to 4 percent would create a measurable revenue gap that policymakers must treat as a deliberate policy choice.
Next steps: BBMR will publish the formal May consolidated revenue (CR) on June 20, 2026, and committee members asked for an updated ‘‘back‑of‑the‑napkin’’ estimate to support July revenue deliberations. The chair requested agencies provide follow‑up reporting where collections remain uncertain.
