Tax on Gross Revenue. (a) Except as otherwise provided, there is imposed on every person, a yearly tax on the person’s total gross revenue. The tax shall be determined in accordance with the following schedule: If the yearly total The tax on the yearly total gross revenue is between: gross revenue is: (1) $0 to $5,000 No tax (2) $5,001 to $50,000 1.5 percent of the amount over $0. (3) $50,001 to $100,000 Two percent of the amount over $0. (4) $100,001 to $250,000 2.5 percent of the amount over $0. (5) $250,001 to $500,000 Three percent of the amount over $0. (6) $500,001 to $750,000 Four percent of the amount over $0. (7) $750,001 and over Five percent of the amount over $0. (b) A person who during the year conducts two or more separate and distinct businesses, sells more than one property or is entitled to distributive shares from more than one partnership, shall pay the yearly tax under this section on the combined total gross revenue of all the businesses, all sales of property or all the distributive shares that are otherwise subject to gross revenue tax for the year. Source: PL 9-22, § 1 (§ 1301) (repealing PL 3-11, § 301). Commission Comment: PL 12-79, which amended 4 CMC §§ 1103(n) and 1305(a) and added 4 CMC §§ 1305(i) and 1427, stated: Section 1. Purpose. It has come to the attention of the CNMI Legislature that the Commonwealth Department of Revenue and Taxation has implemented policies and taken positions misconstruing the amount of taxation to be imposed upon goods produced or manufactured in the Commonwealth solely for export to destinations outside of the Commonwealth. The Legislature finds that in this time of economic hardship when the Commonwealth is attempting to attract new foreign investment with the creation of a Free Trade Zone and the offering of other tax incentives, that the actions taken by Revenue and Taxation are potentially damaging to the Commonwealth’s efforts to attract investment. The Legislature has been made aware that the Department of Revenue and Taxation has imposed a double taxation on companies producing and manufacturing goods in the Commonwealth for export by assessing both the Gross Revenue Tax of 4 CMC §1301 and the Customs Certification User Fee of 4 CMC §1421 on goods produced in the Commonwealth for export. The Legislature wishes to clarify that the production or manufacture of goods in the Commonwealth that are shipped to buyers outside the Commonwealth does not presently and has never, under CNMI tax statutes, subjected the producer or manufacturer of such goods to the Gross Revenue Tax or any similar flat tax.
... Section 6. Tax periods affected. This act shall be construed as affecting and controlling any and all future as well as existing returns, audits, assessments and disputes between the Department of Finance, Division of Revenue and Taxation and any taxpayers. Section 7. Severability. If any provision of this Act or the application of any such provision to any person or circumstance should be held invalid by a court of competent jurisdiction, the remainder of this Act or the application of its provisions to persons or circumstances other than those to which it is held invalid shall not be affected thereby. Section 8. Savings Clause. This Act and any repealer contained herein shall not be construed as affecting any existing right acquired under contract or acquired under statutes repealed or under any rule, regulation or order adopted under the statutes.