Administration works with Sens. Brant McCreadie and Tony Ada on tax refund legislation
Governor Calvo and Lt. Governor Tenorio thank Sen. Brant McCreadie for his partnership to fulfill the intent of previous efforts to pay tax refunds expeditiously.
Since 2011, the Calvo Tenorio administration has been able to pay tax refunds while ensuring the continued operations of our government — and for four of those years it was done without borrowing. People are no longer waiting years for their tax refunds. But this isn’t good enough.
The legislation introduced by Senator Brant McCreadie will allow the government to have tax refund monies set aside a year in advance — so as tax returns are filed and processed the government will have the money to pay it out almost immediately.
“Senator Brant McCreadie has been working with my team to look for solutions to this issue. He reminded us that we had a plan in 2011 that would have had tax refunds paid in days,” the Governor stated. “The Democratic leadership shot down the plan much to my disappointment – and I’m sure I’m not the only person who would have liked senators to approve that measure. We’re hoping to get more support this time around.”
“I want to thank the people of Guam for their patience,” said Lt. Governor Ray Tenorio. “We started the administration in 2011 with almost $400 million deficit that was strangling our government. With the help of two bonds and prudent fiscal management, we have corrected the egregious act of running the operations of this government on the backs of taxpayers expecting refunds. But it’s time to make that next step.”
Sen. Vicente “Tony” Ada, agrees that the people of Guam have waited long enough.
“The attached bill allows us to set aside $100 million into the Income Tax Payment Reserve Fund for the following tax years refund payments,” the minority leader stated.
Sen. McCreadie said the bill will help at two levels.
“The expeditious payment of refunds will help people who look to the annual tax refund payout as a way to catch up on bills. I know that we all continue to receive calls from our people asking for their refunds — some just days after filing because they have a dire need. I believe this bill answers their call for help.”
It also will help the Government save money on interest, he added. The Government currently has paid around $1.5 million in interest for the last few years. “That savings, in addition to the interest earned from the $100 million sitting in the account, can be used to help pay the debt service. All I ask is that my colleagues support this effort to help the people of Guam get their refunds.”
