Pago Pago, AMERICAN SAMOA — If the Administration’s bill that was sent to the Fono last week allowing Treasury to distribute the Advance Child Tax Credit using funds provided under the American Rescue Plan Act of 2021 is approved by the Fono and signed by the Governor, tax payers with children will received their first checks on the last week of next month, September, 2021, follow by a second check in December before Christmas.

This was the explanation from the Tax Office Manager, Vaai Poufa when he testified about the administration bill before the House Ways and Means committee yesterday morning.

Vaai, along with the Deputy Director for the Treasury Department, Levi Reese appeared before the House committee to discuss the administration bill. The hearing was chaired by the committee chairman, Rep. Lavea Fatulegaee Palepoi Mauga.

“This is good news for local taxpayers with children. The administration has sent to the Fono a bill allowing Treasury to distribute the Advance Child Tax Credit using funds provided under the American Rescue Plan Act of 2021 and many families will benefit from this bill,” Lavea said during his open remarks.

According to the administration bill, Lavea told the hearing the American Rescue Plan Act (ARPA) was enacted by Congress on March 11 of this year, providing various sources of financial relief for individuals, families, and business resulting from the COVID-19 pandemic.

He said that Section 9611 of the ARPA Child Tax Credit titled “Improvements for 2021” provides funds for the Advance Child Tax Credit providing American Samoa has a plan for the distribution of those funds.

When given the floor to explain if ASG has implemented any plan for the distributions of these funds, Vaai responded, yes.

Vaai explained that the American Samoa Government (ASG) has already put in place a plan for the distribution of these funds. However, due to the structure of the American Samoa tax code, an amendment to the code is required to enact this provision for the territory and that’s the whole purpose of the administration bill, which is now before the committee.

According to Vaai the monthly payments are $3,600 for one year for each child under age 6 and up to $3,000 for one year for each child ages 6 through 17.

When asked about the ASG plan, Vaai explained that each taxpayer will receive two checks this year, and another two checks for next year. He explained that ASG will not follow the plan by the United States where each tax payer receives a monthly check.

For example, for one child who receive $3,000 in one year, ASG has divided this amount into four payments — $750 for each payment.

The two payments for this year are scheduled to go out on the last week of September and the third week of December, 2021, while the third and fourth payments are scheduled to go out sometime next year, depending on the time taxpayers file their tax return for 2021.

 The bill becomes effective immediately upon approval of the Fono and signing by the Governor because it’s designed to respond to the COVID-19 pandemic and the “funds need to be made available to the people of American Samoa as soon as possible.”

Currently the tax code is frozen at the 2000 IRS tax table.

The second reading in the House for the Admin bill is set for today and third reading for tomorrow, Thursday, Aug. 26th, 2021.

Local Tax Office Manager Vaaimamao E. Poufa also appeared yesterday for a hearing on the legislation in the Senate. (See separate story elsewhere in this issue.)