12 Guam Code Ann. § 70106
Terms Used In 12 Guam Code Ann. § 70106
- 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
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
SOURCE: GC §53609.5, as added by P.L. 16-87.Amended by P.L. 23-135:6.
§ 70107.
(a) Tax Rebates on Certain Rental Income. A qualifying certificate granting a rebate of up to fifty percent (50%) of all income tax paid to the government of Guam by a Beneficiary on income derived from the lease of land, buildings, machinery or equipment to a Beneficiary of a qualifying certificate issued for affordable housing or for a hotel or tourist facility covered by the provisions of this Chapter may be issued for a period not to exceed five (5) consecutive years from the effective date of a qualifying certificate therefor, and a rebate of up to twenty-five percent (25%) of such income tax for a period not to exceed the next five (5) consecutive years; provided, that an application for such rebate is made within the effective period(s) of this Article, as set out in § 70108,
infra.@
(b) Income Tax Rebate on Sales to Developers. A rebate of up to fifty percent (50%) on all taxes paid to the government of Guam by a Beneficiary on income derived from the sale of land or other real property to a developer of a hotel, of a tourist facility, or of affordable housing covered by the provisions of this Chapter may be issued; provided, that an application of such rebate is made within the effective period(s) of this Chapter, as set out in § 70108, infra.
SOURCE: GC §53609.6, as added by P.L. 16-87. Repealed by P.L. 22-85:2 (3/3/94) and remaining funds reversed to the Tourist Attraction Fund by the same
§2.Amended by P.L. 23-135:7. Amended by P.L. 24-266:2.
§ 70108. >Sunset= Provision.
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CH. 70 HOTEL DEVELOPMENT
This Article shall take effect on its approval by I Maga=lahen
Guahan and shall remain in effect until January 1, 2002, at the expiration
of which period this Article shall automatically be deemed repealed; provided, however, that the Board, at its discretion, may extend the effectiveness of this Article to January 1, 2004 by adopting a resolution to such effect prior to January 1, 2002 and provided, further, that any qualifying certificate issued for a period expiring after January 1, 2002, or after January 1, 2004, if the effective period has been extended, shall remain in full force and effect until its particular term expires or it is canceled on other grounds.
The tax rebate on sales to developers authorized by § 70107 of this
Article is available to the Beneficiary for any tax year, any part of which falls before January 1, 2003, or before January 1, 2005, if the Article=s
effective period has been extended.
SOURCE: GC §53609.7, as added by P.L. 16-87.Amended by P.L. 23-135:8. Amended by P.L. 24-266:3.
§ 70109.
(a) Increase in Benefits to Developers Who Make Funds Available for Affordable Housing. In order to initiate the immediate construction of affordable housing on Guam, the Board is authorized to recommend to I
Maga=lahen Guahan and I Maga=lahen Guahan is authorized to issue to
each of those developers of hotels or tourist facilities which qualify a
qualifying certificate with a rebate of up to one hundred percent (100%) of all income tax paid to the government of Guam by the Beneficiary on income received from the activities of the hotel or tourist facility identified in the qualifying certificate, which rebate may be authorized for a period not to exceed twenty (20) consecutive years from the effective date of the qualifying certificate.
(b) Cash Loans by Applicants for Enlarged Benefits. In order to qualify for the increased percentage of rebate of income tax as authorized by this § 70109, an applicant therefor must agree to loan to the affordable
housing fund (AHousing Fund@) to be established by the Corporation the
sum of Five Million Dollars ($5,000,000) for a period of up to five (5)
years. The applicant shall make such loan to the Housing Fund contemporaneously with the issuance of the qualifying certificate by I
Maga=lahen Guahan. Such loan shall be repaid to the applicant without
interest, as provided in subparagraph (c), infra. Until such loan is repaid
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CH. 70 HOTEL DEVELOPMENT
to the Beneficiary, any interest accrued thereon while the loan is in the
Housing Fund is the property of the Housing Fund.
(c) Housing Fund. The Corporation shall establish on its books, separate and apart from its other funds, the Housing Fund described in Subparagraph (b), supra. Utilizing only the interest on the loans in the Housing Fund, the Corporation, working in cooperation with the Guam
Housing Corporation (>GHC=), shall design and develop the necessary
supporting infrastructure for affordable housing projects, such as, but not
limited to, roads, waterlines, sewer lines, power and telephone lines and other utilities. Each loan in the Housing Fund shall be repaid in full without interest to the Beneficiary no later than five (5) years from the date the loan was deposited in the Housing Fund.
(d) Applicability of Other Provisions of the QC Law. The provisions of Chapter 58 of Title 12 of the Guam Code Annotated, respecting qualifying certificates, shall apply to the qualifying certificates issued under this § 70109, except with respect to the maximum percentage of
rebate of income tax permitted. A Beneficiary may be a Subchapter AS@
Corporation, a trust, partnership or limited liability company, and it must otherwise comply with the requirements of that Article with respect to the filing of applications and the publication of notice. A hotel or tourist facility developer which would qualify for assistance under the other provisions of Chapter 70 of this Title can, with respect to a rebate of its income tax, either agree to loan Five Million Dollars ($5,000,000) and obtain a maximum of one hundred percent (100%) rebate for a maximum of twenty (20) years, or not make any such loan, and receive a maximum rebate of seventy-five percent (75%) for a maximum period of twenty (20) years.
(e) Affordable Housing Program. The Corporation shall, to the extent feasible, achieve economies of scale in its development of infrastructure for affordable housing, by utilizing as few contractors, architects and engineers as possible, and by utilizing modern construction techniques so as both to speed the construction of such infrastructure and lower its cost.
SOURCE: GC §53609.8, as added by P.L. 16-87.Amended by P.L. 23-135:9. Amended by P.L. 24-266:4.