Excise tax revenues previously earmarked to repay ASG loans from the Retirement Fund will now be assigned to service the debt for the bonds of the American Samoa Economic Development Authority.
The bill authorizing the new earmarks was approved by the Senate this morning by a vote of 13-2.
The nay votes were cast by the two Tuala-uta senators, Magalei Logovii and Gaea Perefoti.
Yesterday, during an unscheduled hearing by the Senate Government Operations Committee on the bill, Magalei had asked the acting treasurer for a report on first quarter collections for beer and cigarette excise taxes.
The greater portion of these taxes and the $5 customs fee for vessels are now earmarked to repay the ASEDA bonds.
Magalei told KHJ News while the Acting Treasurer stated that the first quarter collections from beer and cigarettes was $3.2 million, he wanted to see the report of actual revenue collections.
A report that ASEDA members circulated to Senators listed projections to be collected from the excise taxes.
But Senator Galeai didn’t feel the report was necessary and said review of the bill should not be held up by the request for information.
Senators quickly moved to approve the bill in final reading, with the two Tuala-uta senators dissenting.
The bill was approved by the House of Representatives in the last session.
It will now be enrolled and sent to the governor for his signature.
The remaining bond sale by ASEDA, which involves the B Series bond would raise $23 million which will go towards financing the
government bank, the Office of Financial Institution which will regulate banks, money transfer agencies and other financial type businesses in the territory.
Also being paid with proceeds from the B Series bond is court settlements for cases involving ASG.
