Pago Pago, AMERICAN SAMOA — The House of Representatives introduced a bill to increase taxes on diesel fuel and liquified petroleum gases, with the revenue to be placed in an earmarked fund for road maintenance.

The measure is sponsored by Faipule Manumaua Wayne Wilson, Samuel Ioka Ale Meleisea and Tiaoalii Fau Sai.

The proposed measure seeks to increase from three and a half to five and one-half cents a gallon on fuel for use of diesel engines, other than aircraft fuels, of which two cents is to be placed in an earmarked revenue fund for road maintenance.

It also changes to five cents a pound liquified petroleum gas such as butane and propane or mixture thereof, and ethane, of which two cents, is to be placed in an earmarked revenue fund for road maintenance.

BACKGROUND

According to the current, law, thirty- one and one-half cents per gallon is collected by the petroleum supplier at the point of sale, on fuel manufactured for use in diesel engines, excluding diesel fuel used by stationary boilers or burners, stationary generators of electric power and marine vessels.

 ‘Forty percent of the basis of all construction materials, as defined in 26.1501 et, .,seq which are of lesser quality than the standards grades established under such chapter.

 “Fifteen cents per 12 fluid ounces or fraction thereof on all soft drinks nonalcoholic carbonated beverages, to be applied to the measure of the container in which it is offered for sale by the importer.”

Payment of the taxes imposed by this section on items brought into American Samoa for consumption within American Samoa may be postponed pursuant to rules promulgated by the Treasurer under the Administrative Procedures Act 4.1001 et, seq., that require among other things, separate storage of those items clearly identified for domestic sale an consumption and a system of delivery to the importer ensuring payment of the taxes at the time of delivery. 

 “The Treasurer shall promulgate rules under the Administrative procedures Act, 4.1001 et seq., to ensure that the taxes Imposed when the exception set forth in subsection (a) (7) of this section is inapplicable are paid.”