§ 50204. Tax Abatements and Tax Rebates
TITLE 4: ECONOMIC RESOURCES DIVISION 5: BUSINESS REGULATION § 50204. Tax Abatements and Tax Rebates. Subject to the provisions of this Chapter, the Governor is authorized to issue a Qualifying Certificate prospectively, from the date of issuance, abating the following taxes or establishing a higher tax rebate level on the following terms: (a) Abatement of taxes of whatever nature, except taxes under the NMTIT and developer infrastructure tax for the Third Senatorial District, paid or to be paid to the Government of the Commonwealth of the Northern Mariana Islands of up to 100 percent for a period of up to 25 years. (b) Rebate of taxes of whatever nature, except for developer infrastructure tax for the Third Senatorial District, paid to the Government of the Commonwealth of the Northern Mariana Islands of up to 100 percent for a period of up to 25 years. Source: PL 12-32, § 3 (3304); repealed and reenacted by PL 12-50, § 2 (d); amended by PL 12-80, § 2(b); amended by PL 19-22 (Nov. 25, 2015). Commission Comment: In addition to severability and savings clauses, PL 19-22 (Nov. 25, 2015) included the following Findings and Purpose section: Section 1. Findings and Purpose. The Legislature finds that the CNMI’s qualifying certificate program offers abatement and rebate of most applicable taxes including the developer infrastructure taxes. However, abatement or rebate of the developer infrastructure tax has substantially reduced the funds available to develop and further expand the CNMI’s infrastructure including roads and highways, water, sewer and power systems. The Legislature further finds that investors and developers must be good business partners and contribute to the improvements and expansions of the CNMI infrastructure in order to sustain and expand the investor’s new or renovated establishment. Without a sustainable infrastructure, new and existing investors will be reluctant to build a new structure or renovate existing ones and existing infrastructure will be jeopardized by new expansions. Accordingly, the purpose of this legislation is to exempt the developer infrastructure tax from applying to the qualifying certificate program for the Third Senatorial District.
Source: CNMI Law Revision Commission