The Governor of Guam has recently signed a bill to establish a sales tax in Guam. This sales tax, a first for the island territory, will be imposed upon all sales of tangible personal property and all services excluding banking, lending, foreign currency, and insurance services. The sales tax will be effective October 1, 2018. The Department of Revenue and Taxation will be responsible for administering the sales tax, and the Department will need to promulgate rules for the same.
The bill also imposes a temporary increase in Guam’s business privilege tax. The business privilege tax will be raised from 4% to 5% from April 1 to September 30, 2018. Additionally, the bill will enable and require the Governor to reorganize the government. This will require the government to cut costs to the tune of $30 million but will prioritize spending in education, health, and public safety.
You can review the bill here.
About the AuthorMore Content by Jesse Rooney