Guam § 70105 - Business Privilege and Use Tax Exemptions.

§ 70105. Business Privilege and Use Tax Exemptions.

(a) Business Privilege Tax. The proceeds from any contract for

building materials or supplies, or for labor or supervision used in the

construction of any new hotel or tourist facility in Guam, or for the

expansion of any existing hotel, or for the development of affordable

housing, shall be exempt from the tax imposed under Article 2 of the

Business Privilege Tax Law; provided, that: (a) the person providing the

materials, supplies, labor or supervision has received a certificate of

exemption from the Corporation; and (b) the person claims the

exemption within the following period: within one (1) year of the date

that such materials, supplies, labor or supervision are furnished. The

Corporation shall adopt reasonable rules and regulations in accordance

with the Administrative Adjudication Law for the granting of certificates

of exemption in order to ensure that certificates are issued only with

respect to materials, supplies, labor or supervision furnished subsequent

to the effective date of this Article and for the construction or expansion

of a qualifying hotel or tourist facility, or development of affordable

housing as defined by the Authority. In addition, the Corporation shall

require that the Beneficiary of a certificate of exemption comply with the

same requirements of a Beneficiary of a Qualifying Certificate (>QC=) as

set out in Title 12 Guam Code Annotated §§58116 through 58119.

(b) Use Tax. The owner of a hotel or tourist facility constructed

under a contract, the proceeds from which have been exempted under

this Section from the tax imposed under Article 2 of the Business

Privilege Tax law, shall be exempted from the Guam Use Tax Law, with

respect to the property used to construct, furnish and equip the hotel or

tourist facility, for a similar period.

(c) Offset of Taxes if Paid. In the event the contractor, supplier or

owner, otherwise eligible for the tax exemptions authorized by this

Section, has paid the taxes because the Corporation=s rules and

regulations had not been adopted and promulgated at the times the taxes

were required to be paid, such contractor, or supplier or owner shall be

entitled to an offset of such taxes against future taxes, without interest,

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on presentation to the Director of Revenue and Taxation of a certificate

of exemption issued by the Corporation to such contractor, supplier or

owner.