FOR IMMEDIATE NEWS RELEASE (April 27, 2018 – Hagåtña)
Bill No. 258-34 (LS) introduced by Vice Speaker Therese M. Terlaje was heard on the legislative session floor today and placed in the voting file. Bill No. 258-34 (LS) will allow for the immediate implementation of the levy on Short-term Vacation Rentals, similar to the already implemented levy on Bed and Breakfast establishments. The bill proposes to allow the Department of Revenue & Taxation to proceed with the collection of an 11% excise tax on these establishments without the need for additional rules and regulations.

Vice Speaker Terlaje stated that current law is clear enough for DRT to issue applications for certifications, certificates, and reporting forms for Short-Term Vacation Rentals.

The Guam Visitor’s Bureau expressed their full support, calling the bill “ an important step to leveling the playing field for all accommodation services within the tourism industry on Guam.”

A fiscal assessment of Bill No. 258-34 (LS) provided by the Bureau of Budget and Management Research reported potential revenue of approximately $3.6 million.

“This is not a new tax, but it is my understanding that DRT has not yet implemented this levy on these short-term vacation rental establishments. The intent of this bill is to streamline this process and give DRT more tools to move forward with the enforcement of the existing excise tax statute and bring in other businesses that are not currently reporting this type of rental,” Terlaje further stated.

For more information, please call the Office of Vice Speaker Therese M. Terlaje at (671) 472-3586.