Territory
gets $20.4 MIL to fund rebate payments
by Fili Sagapolutele
Samoa News Correspondent
U.S. Treasury
Secretary Henry M. Paulson Jr. yesterday informed Gov. Togiola
Tulafono that American Samoa will receive $20.4 million under
the federal economic stimulus law.
Provisions of
the federal law state that in order for American Samoa to be
able to receive funds from the U.S. Treasury, the territory must
have a plan, approved by the Secretary of Treasury, under which
American Samoa will promptly distribute the rebates to its residents.
Additionally,
the law establishes that the payment to be made by the Treasury
Secretary to American Samoa will be "in an amount estimated
by the Secretary as being equal to the aggregate benefits that
would have been provided to residents of American Samoa"
based on local tax laws.
Togiola submitted
two weeks ago to the federal Treasury the territory's plan for
the distribution of the rebates, which is based on information
from 2007 income tax returns that were filed in 2008.
According to
the plan, the local Treasury Department will use 2008 income
tax returns filed in 2009 to make "final rebate" payments
to eligible individuals.
"American
Samoa will make advance rebate payments for timely filed 2007
tax returns in calendar year 2008 and make final rebate payments
for timely filed 2008 tax returns in 2009," the plan says.
"American Samoa will resolve disputes with respect to these
rebates by December 31, 2010."
According to
the plan, payments based on 2007 individual income tax returns
filed on or before April 15 will be processed between May 1,
2008 (but not before ASG receives the money from the U.S. Treasury
Department) and July 31, 2008.
Additionally,
those who file their returns after April 15 but before Nov. 30
will be paid by the local Treasury Department by Dec. 31, 2008.
The plan also
called for ASG to establish a trust fund at the Bank of Hawaii
and all money received from the U.S. Treasury to cover the rebates
will be deposited into this account to be used to fund the rebate
checks.
Additionally,
money received from the federal government for the rebates is
not to be used for administrative expenses. ASG is required to
provide to the federal government quarterly reports indicating
the amount of money in the trust account and the total paid out
for that specific quarter. All unused monies are to be returned
to the U.S. Treasury Department.
Paulson yesterday
informed Togiola that American Samoa's plan has been approved
and the federal government has estimated that $20.4 million will
go to American Samoa based on provisions of the federal stimulus
economic law.
Paulson says
this amount will be forwarded to the local Treasury "to
fund the prompt distribution of stimulus payments to residents"
of the territory, in accordance with the American Samoa plan.
ASG expects to
receive the $20.4 million in a week or so with check distribution
to start in two to three weeks. When refunds are issued it will
be staggered out throughout the week (to prevent crowding at
the Tax Office), and based on those who have already filed their
2007 tax returns.
American Samoa
and other U.S. territories were included in the federal law,
through the efforts of Congressman Faleomavaega Eni and Guam
Congresswoman Madeleine Z. Bordallo, who urged Congressional
leaders to include the Territories in the stimulus package and
make child tax credits and tax rebates available to qualifying
residents.
Faleomavaega
and Bordallo, along with U.S. Virgin Islands Congresswoman Donna
Christensen and Puerto Rico Resident Commissioner Luis Fortuno,
also urged the Treasury Secretary to implement an arrangement
that will provide for the funds to be transferred in advance
of the actual payouts of the rebates.
In a statement
yesterday, Faleomavaega thanked U.S. Rep. Charles Rangel, chairman
of the House Committee on Ways and Means and U.S. Sen. Max Baucus
of the Senate Finance Committee for supporting the request to
included the territory in the federal law to help jump start
the nation's economy.
Faleomavaega
also commended Gov. Togiola and the local Tax Office for acting
quickly and submitting a plan that was approved by Paulson.
"I am especially
pleased that the people of American Samoa will benefit from these
rebates which will help bolster our local economy," he said.
Tax Office manager
Melvin Joseph said yesterday that the governor's office plans
to issue an official statement about the tax rebates.
Reach the
reporter at fili@samoanews.com.
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Inc. dba Samoa News reserves all rights.
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