Business leaders want lawmakers to address BPT rollback

Business leaders are turning their attention to the Guam Legislature to address their number one priority: a rollback of the Business Privilege Tax. They believe the huge windfalls in federal assistance that GovGuam has been receiving means money can now be put back into the hands of struggling businesses in the form of lower taxes.

The Guam Chamber of Commerce has been lobbying hard for returning the BPT to 4 percent from the current 5. But Governor Lou Leon Guerrero has repeatedly opposed the move, saying government finances remain on shaky ground.

So Chamber chairperson Christine Baleto says they're turning elsewhere, explaining, "Really, our focus right now is with the Legislature. We can't even begin to speak with the administration until we get past the legislature, and so we're hoping that the legislature will schedule some public hearings, allow the community to voice their opinions, their positions, their feelings on the rollback."

No fewer than three bills have been introduced to roll back the BPT in one shape or form. But Baleto says the Chamber is only focused on an outright rollback.

She added, "I think when you add on different measures you kind of convolute the situation. If there's a sales tax they want to implement or another insurance then I think that needs to be separate and we need to focus on the rollback because that's the most immediate need for our community."

The BPT was raised three years ago this week, on April 1, 2018.  It was in response to a projected $60 million loss in government revenue due to tax cuts under the trump administration. The legislature passed the increase, and it was signed into law by then governor eddie calvo in what was supposed to be a temporary hike, but senators last term removed the sunset provision.

Guam Contractors Association president James Martinez says now the Biden Administration may reverse the Trump tax cuts.

"We see that they're gonna roll back some of the tax breaks that were given to corporations so that's going to bring back potentially some of the money that was lost in the previous administration," he stated. "And then you have the American Rescue Plan - that's going to include the eitc payments and that's gonna be additional funding of at least up to $60 million, so a lot of things have changed in last couple of years."

They say it's the right time for a rollback, especially coming off a very hard year for business because of the pandemic.