The House Ways and Means Committee has entertained a motion from Tuala-uta Representative Vui Florence Saulo to move the effective date of the administration’s bill to change the tax tables for American Samoa from 2018 to 2017.
This came after the Committee questioned members of the ASG Revenue Task Force, who were all from Treasury.
Treasurer Ueligitone Tonumaipea, Deputy Treasurer Keith Gebauer and Tax Office Manager Vaaimamao Poufa.
The administration bill is one of then measures that the Task Force says is intended to give money back to tax payers.
It was explained that the IRS tax table which American Samoa follows has been frozen at the 2000 code and this was during Governor Tauese Sunia’s administration.
The Treasurer explained the thinking at the time was that ASG could not afford the tax returns for subsequent years.
Tax Office Manager Poufa said the majority of tax payers in the territory are paying the 4% minimum tax.
He said the bill offers more exemptions and would benefit the other 30% of taxpayers.
According to the bill in 2018, the first year that the tax table is changed, the territory will be using the IRS 2004 table.
That will remain for four years before the 2016 tax table is applied and so fourth until the local tax code mirrors that of the US.
Rep Vui asked why tax payers should have to wait for a whole year, to receive the benefits of the change instead of implementing it for the 2017 calendar year.
The Treasurer said that was because the calendar year 2017 is half way .
During the committee’s discussion after the hearing.
Vui proposed that the effective date for the IRS tax table be moved to January 2017 so that the changes can be implemented at the beginning of 2018.
The committee was supportive but will vote on the amendment when the bill is reported to the floor after it received requested information from ASG officials.
