Fees collected from issuing passports were deposited
into the “Tax Collection Enhancement Fund.” Half of
the fees were to be used to employ Tax Technicians, Revenue Agents,
Revenue Officers and for other related expenses in order to increase
collection of taxes; fees were also to be used for the salaries
of employees serving as Passport Acceptance Agents – only
two to be transferred from the current Passport Office. Additional
Passport Acceptance Agents will be “cross-trained” from
within the Department of Revenue and Taxation to enhance efficiency.
Speaker Pangelinan and I added a provision to create and appropriate
the other half of the fees to the “Public School Library Resources
Fund.” All moneys deposited into this fund will be spent for
the enhancement of learning resources and technology within the
Public School Libraries, including, but not limited to, the purchase
of computer equipment for the direct use of students, resources,
subscriptions, periodical materials and other library supplies and
materials that directly benefit the students. This fund will be
kept in a separate bank account and administered by the Guam Education
Policy Board.
The Director of the Department of Revenue and Taxation has estimated
that for every $30,000 in resources to his department, an additional
$800,000 in back tax revenue can be collected. If an estimated $500,000
is deposited into the Tax Collection Enhancement Fund, $13 million
in back tax revenue could potentially be collected.
Last year the Guam Passport Office’s expenses were about
a quarter of a million dollars and its collections from passport
fees were about $750,000. This fiscal year, collections from passport
fees are estimated to be one million dollars.
The reform could save the Government of Guam a substantial amount
of money in expenses, could generate millions to the government
in additional tax collection, as well as providing more resources
for school libraries.
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