02 Apr 2018
- bBy Cherrie Anne E. Villahermosa – [email protected] – Variety News Staff
THE Commonwealth Utilities Corp. supports the passage of a measure that will amend the developer infrastructure tax program.
Senate Bill 20-27, introduced by Senate President Arnold I. Palacios, is now with the House Committee on Ways and Means chaired by Rep. Angel Demapan.
According to the bill, investors must conduct an assessment infrastructure impact on each development they are proposing to build in the CNMI.
In his written comment regarding the bill, CUC Executive Director Gary Camacho suggested that impact fee payments be broken into two payments.
“The reason for this suggestion is that in many cases, developers are challenged to make full payment upfront because of cash-flow concern. It has been shown, not in all cases, that consideration given to a developer to split the cost can earn additional support for community benefit improvements that may not have considered at the outset of the project if full payment for the impact assessment were required. At no time should a developer be given a break from their obligation but a negotiated agreement that may capture additional community benefit points may be a valuable consideration towards building a long term business relationship,” Camacho said.
The bill states that all developer taxes collected “shall be used exclusively for infrastructure improvements for the benefits of the senatorial district in which the development shall be located provided that the developer taxes shall be first used to pay for any infrastructure impact project of a new development for which the taxes were paid.”
Infrastructure refers to electrical, water, sewerage, road, drainage, flood control and solid waste management systems.
Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/103339-cuc-supports-infrastructure-development-tax-bill