American Samoa § 11.0407 - Income tax reserve account.

§ 11.0407. Income tax reserve account.

(a) The Treasurer of American Samoa shall establish an “Income Tax Reserve Account” promptly upon the enactment of the Samoan Income Tax Act and shall deposit in such account 25% of all corporate income taxes, as and when collected, unless at the time of collection the reserve account has a net balance of not less than $1,000,000. Upon meeting the requirements of this section for the funding of the Income Tax Reserve Account, the funds thereafter collected by the Treasurer shall then be deposited in the Economic Development Fund, to be remitted to the Development Bank of American Samoa as set forth in section 28.0108. (b) The reserve account shall constitute a trust fund out of which refunds and other adjustments shall be made in favor of any corporation subject to the Samoan Income Tax Act. (c) The money in the reserve account shall remain in a segregated status unless the Legislature of American Samoa authorizes its use for other purposes and provides for reimbursement of the account as and when needed. (d) The Reserve Account shall be reimbursed by continued collection and set aside of 25% of all income taxes designated in paragraph (a) above, which set aside shall continue until the net balance of the Reserve Account reaches the amount and level established in said paragraph (a). Amendments: 1987 Subsection (a): substituted “Treasurer of American Samoa” for “Governor”. Reviser’s Comments: PL 13.53, 1974, which provided it was to take effect upon signing by the Governor (it was signed 11 September 1974) due to an emergency need to fulfill budgetary requirements for the fiscal year 1975, appropriated $1,007,995 from the Income Tax Reserve Account, to be used for capital improvements, government operations, special programs and grant match requirements. The act also provided for the disposition of sums not obligated, at the close of the year, for the purpose for which they were appropriated. PL 16-37, effective 20 August 1979, appropriated $1,000,000 from the Income Tax Reserve Fund to be used for operating and capital improvement programs for fiscal year 1979, the prior years’ general fund deficit, and additional government operation expenses for fiscal year 1979. Additionally, $353,321 of the above appropriation was reserved to offset any deficiency in the general fund at the end of fiscal year 1979, subject to the unused portion thereof, if any, reverting to the Income Tax Reserve Account.