Adelup remains steadfast in increasing business privilege tax - News: On Air. Online. On Demand.

Adelup remains steadfast in increasing business privilege tax

Posted: Updated:

As if the drama from Sunday's repeated special legislative sessions wasn't enough, there's more to the political theater that played out through the weekend centered on the Governor's Bill 1-6S, Eddie Calvo's original proposal to resolve the projected $67 million revenue shortfall created by the Trump tax reforms. Throughout it all Adelup's, solution remains a 50% increase in the Business Privilege Tax.

Essentially what the Governor has been asking for is to raise the BPT from 4% to 6%, to raise an added $120 million. This "expanded revenue stream" as the bill calls it, will go to cover not just general fund operational costs. It's also earmarked for a GMH stabilization fund to pay for a modernization plan the administration has been pushing for more than a year, and to cover chronic GMH budget shortfalls.

Finally, the new tax revenue will also be used for the education department's capital needs.

Early on Speaker BJ Cruz offered a counter-proposal to revise the BPT from 4 points to 5, or a smaller 25% increase, but that was voted down. Senator Dennis Rodriguez also pushed his proposal to eliminate tax exemptions and abatements for the insurance industry, and impose a 4% fee health insurance premiums. He also wants to impose a 4% tax on the net income of banks and other financial institution lenders.

He said, "We've never heard anything about the deductions they've had on their personnel, marketing, all other expenses that any other business are not allowed to deduct in the formulation of their bpt obligation. And so with that, that's what this amendment does. 4750

The Rodriguez amendments also failed. But lawmakers are weighing still other revenue alternatives which will undergo public hearing this week: replacing the bpt with a sales tax...raising traditionally low real property taxes, and offering a tax amnesty period to entice those who owe money to step forward and pay without penalty.

Lawmakers got a break Monday from the unprecedented weekend of special sessions.

Powered by Frankly