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Northern Mariana IslandsHB 24-6324th Northern Mariana Islands Legislature (2025-2026)HouseWALLET
To amend Title 4 sections 1991 to 1995 relating to the 3% construction tax on gross revenues derived from certain non-residential construction projects and to enact a new section 1996 pertaining to Applicability; and for other purposes.
Sponsored By: John Paul Palacios Sablan (Independent)
Became Law
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 3 benefits, 2 costs, 1 mixed.
Credit to offset the construction surtax
You can claim a nonrefundable credit on your Commonwealth Subtitle A income tax for the construction surtax you paid. The credit equals the surtax amount, up to your tax bill. You cannot claim a credit for any surtax amount you already deducted when figuring taxable income.
General contractors pay 3% on big projects
General Contractors must pay a 3% surtax on gross revenue from Qualifying Construction Projects once yearly qualifying revenue is over $350,000. It covers non-residential work and includes site tasks like mobilization, testing, land clearing, excavation, and drilling. Money from building single-family or other standalone homes is excluded. A General Contractor is the main company that runs the whole project.
How surtax money is split and used
The government sets up a separate account for 10% of surtax revenue. That money stays available across fiscal years. Of that account, 20% supports enforcement and customs: 2.5% to District 1 finance, 2.5% to District 2 finance, and 15% to District 3 finance. The other 80% funds roads, solid waste, and environmental protection: 15% to District 1 public works, 15% to District 2 public works, and 50% to District 3 public works. The rest of the surtax revenue goes to the General Fund.
When the new construction tax applies
The surtax starts on the first day of the calendar month after this Act became law. Contracts awarded on or before January 15, 2025 are exempt. Contracts awarded on or after January 16, 2025 are taxable. Change orders made on or after January 16, 2025 can make an older contract taxable. Money from months before the start date is not taxed, but it still counts toward the $350,000 yearly threshold.
Subcontractor receipts exempt from 3% tax
Subcontractors do not pay the 3% surtax on payments for work done on a qualifying project. A subcontractor is a business hired by a General Contractor under a separate contract.
Monthly filing and payment for surtax
If you owe the surtax, you must file a return and pay each month. The due date is the last day of the next month. Report revenue when it is received, accrued, or earned, whichever comes first. The tax office may grant a short extension for good cause, but not past the last day of the first month after the normal due date.
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Sponsors & Cosponsors
Sponsor
John Paul Palacios Sablan
Independent • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 2/13/2026
Senate Final Reading — Passed
Yes: 0 • No: 0
House vote • 10/9/2025
House Final Reading — Passed
Yes: 0 • No: 0
Actions Timeline
PL 24-30
3/27/2026HouseSenate Final Reading — Passed
2/13/2026SenateHouse Final Reading — Passed
10/9/2025HouseIntroduced
9/30/2025House
Bill Text
HB 24-63
9/30/2025
SCR 24-59
9/30/2025
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