TEN TAX REFUND FACTS
- In February 2011, Governor Calvo announced his intent and plan to pay refunds owed to tax payers … some folks had been waiting five, six years.
- A few months later, in April, the Calvo Tenorio administration introduced a bill that required the Legislature’s approval so tax refunds could be paid.
- The bill also includeda plan to set aside ONE YEAR’S WORTH of tax refunds AHEAD OF TIME to pay for the FOLLOWING YEAR’S REFUNDS. (This would shorten the amount of time people would have to wait.)
- The Democratic leadershipat the Legislature fought the Governor’s bill. At the same week the bill was sent to the Legislature, a lawsuit was filed to “force the Government to pay tax refunds”.
- The Administration and the Legislature reached a compromise. The Democratic leadership pulled the portion about saving a year ahead.
- The bill is signed into law and the Administration starts the process of getting tax refund checks into the hands of the people.
- Attorneys amend the lawsuit— it is either amend or withdraw the lawsuit since now tax refunds are getting paid. The amended lawsuit called into question the years’ long practice of paying refunds for those individuals facing an emergency.
- In 2013, the judge ruled that GovGuam must pay refunds on a first-come first-served basis and within six months of a return being filed or six months after the April filing deadline, whichever is later.
- By this time, the Administration has alreadyaccomplished its goal of paying off overdue tax refunds. Also, tax refunds for tax years 2011 and 2012 were paid. Since 2011, tax refunds have been paid within months.
- In 2011, bonds were borrowed to pay tax refunds owed for previous years but unpaid by previous administrations, 2010 back to 2003. Refunds for tax years 2011 up until today were paid through General Funds. The Administration managed its finances and continues to pay tax refunds while also paying its other obligations.