The Lolo and Lemanu Administration in an effort to support and improve the operations of the Pago Pago International Airport, is proposing a bill for the establishment of a hotel occupancy tax. The bill was introduced in the Fono last week, and according to the measure, “the terms include but are not limited to inns, motels, tourist homes or courts, lodging houses, rooming houses and apartment houses.”

The tax does not include a room in a dormitory operated by a religious organization, school, college or university for use by its students, faculty or staff.

According to the proposed measure, a tax is to be levied and imposed on the use and renting, leasing or letting of a hotel room in the territory at the rate of 5% of the room rental rate (not including taxes of non-room rental charges added to the hotel bill) for each such hotel room rented for every 24 hour period or fraction thereof.

Further, the proposed bill says the tax levied shall be paid in addition to any and all other taxes and charges, and it’s the duty of the owner of every hotel to secure the tax from the occupant of the hotel room and to pay the tax to the Treasurer.

The proposed bill also notes that the Treasurer, deputy treasurer or representative “may enter the common and business premises of any hotel for inspection of books and records in order to effectuate the proper administration of this proposed tax,” and “No person shall prevent, hinder or interfere with the Treasurer or his duly authorized representative in the discharge of his duties.”

Further, the hotel owners of each hotel will file quarterly returns with the Treasurer showing tax receipts received with each hotel room during the month of the quarter and it shall be no later than 30 days after the end of each calendar quarter.

The proposed measure further says that failure to pay taxes, in addition to any other penalties for violation of making late payments, or failing to make payments, shall pay in addition to the amount due, a penalty of 20% interest at the rate set by the Treasurer’s rules and compounded daily.

All proceeds resulting from the imposition of the tax, including interest and penalties shall be paid to the General fund.

If approved into law, effective January 1, 2016 the Treasurer shall pay over 75% of the proceeds of the tax imposed to the Port Authority for use in improving the services of the Pago Pago International Airport. The tax imposed shall not be applied to hotel resident employees, with certain stipulations.