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THE Governor’s Office will be submitting legislation next week to the Legislature to amend a current law so GovGuam can pay out the remainder of 2011 tax refunds.
At issue is $33 million set aside in government of Guam reserve coffers for next year’s refunds. Gov. Eddie Calvo wants to use this fund to pay out refunds that are still owed.
According to Troy Torres, the governor’s communications director, the recently sold bond only covers $60 million for 2011 refunds.
“We need $105 million to fully cover 2011 tax refunds. There’s this money that is available as cash in the bank and we want to use it to pay off refunds as much as possible,” Torres said.
He stressed the governor will not be seeking another bond for next year.
“We’re going to empty the pot. If this bill passes into law, what we’re going to be emptying are the reserves and we have to fill it back up,” Torres said.
Tax refunds are expected to be mailed out in the middle part of next week.
Meanwhile, Sen. Judi Guthertz also announced yesterday that she will immediately offer legislation which will free money currently being held in reserve by GovGuam for 2012 tax obligations.
“I think it is prudent for us as a government to clear any debts owed to our people and I support Gov. Calvo’s call for a clean slate with regard to the payment of all tax refunds owed for 2011,” Guthertz said.
The senator added she will proffer legislation to do what the governor has requested.
“I’m offering my assistance and am willing to provide a bridge via legislation to complete the payout of our people’s money utilizing these monies, which I understand currently amounts to $33 million, but by law, is being held in reserve.”
Guthertz concluded: “We owe it to our hardworking families to provide them with timely tax returns. It is, after all, their money.”