12 Guam Code Ann. § 58203
Terms Used In 12 Guam Code Ann. § 58203
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) New Hotel Construction Tax Rebate and Abatement. There shall be allowed to each developer a tax rebate, exemption, and abatement in an amount equal to ten percent (10%) of their total construction cost, which can be applied by the developer at their discretion to the following taxes:
(1) Fifty percent (50%) Business Privilege Tax (BPT) for twenty (20) years as long as the tax credits are available at the point they are taken.
This BPT exemption shall not apply to the levy of three percentage points (3%), out of the total percentage points levied from time to time, of the BPT, the revenues from which are pledged to the government of Guam Business Privilege Tax Bonds;
(2) Seventy-five percent (75%) Income Tax
Rebate for twenty (20) years;
(3) One hundred percent (100%) Real Property Tax Abatement for ten (10) years; provided, the fee simple owner taxpayer is the Qualifying Certificate beneficiary and that the real property on which the tax is assessed is only utilized by the beneficiary for
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activities identified in their Qualifying Certificate;
(4) One hundred percent (100%) of Use Tax Exemption with respect to the property used to construct, furnish, and equip the new facility construction or substantial expansion of an existing building. The exemption must be claimed no later than one (1) year of issuance of the facility’s occupancy permit.
(b) Hotel Renovation and Expansion Tax Rebate and Abatement. There shall be allowed to each developer a tax rebate, exemption, and abatement in an amount equal to twenty percent (20%) of their total construction cost, which can be applied by the developer at their discretion to the following taxes:
(1) Fifty percent (50%) Business Privilege Tax (BPT) for twenty (20) years as long as the tax credits are available at the point they are taken.
This BPT exemption shall not apply to the levy of three percentage points (3%), out of the total percentage points levied from time to time, of the BPT, the revenues from which are pledged to the government of Guam Business Privilege Tax Bonds;
(2) Seventy-five percent (75%) Income Tax
Rebate for twenty (20) years;
(3) One hundred percent (100%) Real Property Tax Abatement for ten (10) years; provided, the fee simple owner taxpayer is the Qualifying Certificate beneficiary and that the real property on which the tax is assessed is only utilized by the beneficiary for activities identified in their Qualifying Certificate;
(4) One hundred percent (100%) of Use Tax Exemption with respect to the property used to construct, furnish, and equip the expanded and/or renovated building. The exemption must be claimed no later than one (1) year of issuance of the facility’s occupancy permit.
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(c) Application Period. Eligible developers for this Special QC pursuant to § 58203(a) shall file their application prior to issuance of the hotel project building permit. Eligible developers for this Special QC pursuant to § 58203(b) shall be able to apply at any time, granted that for the purposes of calculating their twenty percent (20%) tax benefit amount, any construction costs invoiced prior to the official application submission date shall be deemed ineligible.
(d) Benefit Negotiations. The Authority has the sole authority to negotiate the terms of the QC. Negotiations shall be completed prior to issuance of the hotel project’s building permit, if applicable.
SOURCE: Added by P.L. 32-233:2 (Dec. 31, 2014). Repealed and reenacted by P.L. 36-107:XII:37 (Sept. 12, 2022) and P.L. 36-107:XII:37 (Sept. 12, 2022).