Pago Pago, AMERICAN SAMOA — Approximately $800,000 is currently owed in excise tax payments to the government, which notably includes a significant tax liability related to an aircraft. This alarming revelation emerged during a Senate Budget and Appropriations Committee hearing conducted last Thursday. 

During the session, it became clear that a disparity exists in the tax payment policies affecting different importers.

Some importers have been permitted to make partial payments on excise taxes for specific categories, such as vehicles and heavy equipment, while others are required to pay the full excise tax amount upfront. The committee is actively investigating the underlying reasons for this inconsistency in policy enforcement.

Although no specific names were disclosed at the hearing, it was reported that one particular company is responsible for an astonishing 90% of the total outstanding excise tax balance owed to the American Samoa Government (ASG), which amounts to $793,998. This single importer has an outstanding tax obligation of $713,216.17, which, according to testimony provided by Acting Treasurer Brett Butler, is solely attributable to a single item: the purchase of an airplane.

The remaining outstanding tax amount of $80,781 is collectively owed by 42 other individual taxpayers and businesses.

In light of these findings, the committee raised concerns regarding the release of vehicles before the corresponding excise taxes had been fully paid.

Senator Magalei Logovii, who chaired the hearing, emphasized that the provisions outlined in the American Samoa Administrative Code stipulate that while the Treasurer has the authority to permit partial payments of excise taxes, the release of vehicles and heavy equipment should not occur until the total excise tax has been completely settled.

During the hearing, senators reviewed a report compiled without input from the Treasury, detailing companies and individuals with outstanding excise tax liabilities dating back to 2017. This report, which controversially included the names of the delinquent taxpayers, raised additional concerns. 

Acting Treasurer Butler clarified that this report did not originate from the Treasury Department; rather, his office had received a letter from the Legislative Financial Officer, dated September 17, which requested a comprehensive report on excise taxes that remain unpaid.

Following legal advice from the Attorney General, the Treasury was advised to refrain from releasing the names of the individuals and companies listed in the report, as the ASG has not independently verified the accuracy of the outstanding balances claimed.

As a result, instead of disclosing names, a summary of the tax obligations was presented.

This summary highlighted that the total outstanding excise tax balance owed to ASG is $793,998.24, with 90% of this amount attributable to a single entity.

Butler reiterated that the considerable tax amount is linked to just one purchased item — a high-value airplane — underscoring the need for policy review and more equitable enforcement of tax regulations in the territory.