Title 4, Economic Resources

Limitation of Personal Liability. The director and other employees of the department shall not be liable in any civil action for damages for any act done or omitted in good faith in performing the functions of his or her office. Source: PL 3-104, § 901. Commission Comment: With r…

Short Title. This chapter shall be known as “Health Claims Uniformity and Prompt Payment Act.” Source: PL 20-88 § 2(101) (Feb. 8, 2019), modified. Commission Comment: In codifying PL 20-88, the Commission numbered and renumbered sections and parts of sections pursuant to 1 CMC § …

Definitions. For the purposes of this chapter, (a) “Claim” means (1) a bill for services, (2) a line item of service, or (3) all services for one member within a bill. (b) “Clean Claim” means one that is without material defect and can be processed without obtaining additional in…

Prompt Payment. (a) Within 180 calendar days of the effective date of this Act, for covered services rendered to its members, a health insurance issuer shall reimburse any person entitled to reimbursement under the health plan within forty (40) calendar days after the date of rec…

Electronic Claims and Eligibility Transactions Required. (a)Within one calendar year of the effective date of PL 20-88, Health Insurance Issuers shall provide for the acceptance of electronic claims transactions from Health Care Providers. Electronic Claims transactions shall fol…

Claims Payment Report. (a) Health Insurance Issuers shall include with its annual report filed with the Insurance Commissioner a claims payment report to include the: (1) Number of claims received in the previous calendar year; (2) Number of claims denied in the previous calendar…

Rules and Regulations. (a) The Insurance Commissioner may adopt rules, regulations, and penalties as necessary to implement this chapter. (b) When adopting rules under this section the Commissioner: (1) Shall consult with national and state organizations involved with the standar…

Applicability. This chapter shall apply to any individual or group Health Plan issued or renewed by a Health Insurance Issuer as defined in this chapter." Source: PL 20-88 § 2(107) (Feb. 8, 2019), modified. Commission Comment: In codifying PL 20-88, the Commission numbered the se…

Major Disaster Volunteer Protection. (a) Definitions. In this section, the following words have the following meanings, unless the context clearly requires a different meaning: (1) "respond to an emergency" means the mobilization and distribution of rescue relief and rebuilding e…

Earned Compensation and Earned Subsistence Allowance. (a)(1) If, at the time of the death of any person, an employer is indebted to the person for work, labor, or services performed, and no personal representative of the person’s estate has been appointed, such employer shall, up…

Legal Tender. The legal tender of the Commonwealth shall be that of the United States. Source: PL 3-11, § 801; repealed and reenacted by PL 14-35, § 4 (1801). Commission Comment: PL 14-35 was enacted on October 12, 2004 and took effect on January 1, 2005. PL 14-35 contained a sho…

General Fund. There is created a General Fund into which all revenues raised pursuant to the tax laws and other revenues laws, and all monies received by the Commonwealth, its departments, agencies and instrumentalities shall be deposited, unless otherwise provided by law. The Se…

Distribution of Revenues Marianas Visitor Authority and the Retirement Fund. The Marianas Visitors Authority shall receive twenty percent of the taxes collected under 4 CMC § 1405(b) and eighty percent of the taxes collected under 4 CMC § 1502. Twenty percent of the taxes collect…

Distribution of Revenues. (a) Except as provided by this Division, all revenues raised pursuant to this Division shall be deposited into the General Fund. (b) The Secretary shall cause the Department of Finance to annually deposit up to $2,000,000 collected from the liquid fuel t…

Non-NMTIT Application. Unless otherwise specifically provided, the provisions in this chapter shall apply to taxes other than taxes under Chapter 7 of this Division. Source: PL 3-11, § 805; amended by PL 7-19 § 2; repealed and reenacted by PL 14-35, § 4 (1805).

Delegation of Authority. The administration and enforcement of this entire Division shall be under the supervision of the Secretary. Any of the responsibilities, tasks or duties conferred upon the Secretary herein may also be delegated to the Director of Revenue and Taxation. Sub…

Tax Forms (a) The Secretary shall prescribe the forms for all returns required to be furnished under the provisions of this Division or provide for other methods of filing returns and may provide in such forms for the giving of such information as may be deemed necessary or advis…

Transaction to be Recorded. (a) Every person, engaging in any transaction subject to a tax, fee or charge imposed under this Division shall keep a complete and accurate record of each transaction in English and such record shall be available for inspection, examination and audit …

Record Retention and Conflict of Interest. (a) The Commonwealth shall preserve the information contained in reports and returns filed under this Division until the Secretary orders them to be destroyed. (b) The Director of the Division of Revenue and Taxation, every employee of t…

Authority to Reduce and Negotiate Tax and Penalties; Authority to Make Credits or Refunds. (a) The Secretary may waive any additions to tax, additional amounts, or penalties, or any part thereof attaching to acts performed or not performed by any taxpayer acting in reasonable rel…

Limitations on Assessments and Collections. (a) General Rule. Except as otherwise provided in this section, the amount of tax imposed by this Division shall be assessed within 3 years after the return was filed (whether or not such return was filed on or after the date prescribed…

Collection After Assessment. (a) Length of Period. Where the assessment of any tax imposed by this Division has been made within the period of limitation properly applicable thereto, such tax may be collected by levy or by a proceeding in court, but only if the levy is made or th…

Suspension of the Running of Period of Limitation. The running of the period of limitations on collections after assessment shall be suspended for the period during which the taxpayer is outside the Commonwealth if such period of absence is for a continuous period of at least 6 m…

Period of Limitation on Filing Claim for Refund. (a) Period of Limitation on Filing a Claim. Claim for credit or refund of an overpayment of any tax imposed by this Division in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 1 …

Periods of Limitation on Criminal Prosecutions. No person shall be prosecuted, tried, or punished for any of the various offenses arising under the Commonwealth tax laws unless the information is instituted within 3 years after the commission of the offense, except that the perio…

Period of Limitations on Suits. (a) Suits by Taxpayers for Refund or Rebate. (1) General Rule. The period of limitations for filing a claim for the recovery of any non-NMTIT tax, penalty or other sum shall be allowed as provided by § 6532(a)(1) of the NMTIT with respect to sectio…

Service by Publication. For all tax actions, including Chapter 7 of this Division, where service of process is required, the Commonwealth Government or its designee may serve process on a party not found within the Northern Mariana Islands under the same circumstances and in the …

Private Letter Rulings. The procedures for private letter rulings shall follow that form prescribed in section 1707 of this Division. Source: PL 3-11, § 812; repealed and reenacted by PL 14-35, § 4 (1812).

Penalty Assessed as a Tax. (a) Unless otherwise provided, any penalty and liability imposed by this Article shall be paid upon notice and demand by the Secretary, and shall be assessed and collected in the same manner as taxes except that the following penalties shall not be subj…

Failure to File Tax Return or Pay Tax. (a) Addition to the Tax. In case of failure: (1) To file any return required by this Division on the date prescribed therefore (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reaso…

Failure to File Correct Information Returns. (a) Imposition of Penalty. (1) In General. In the case of a failure described in paragraph (2) by any person required to file with respect to an information return, such person shall pay a penalty of $50 for each return with respect to…

Failure to Furnish Correct Payee Statements. (a) General Rule. In the case of each failure described in subsection (b) by any person with respect to a payee statement, such person shall pay a penalty of $50 for each statement with respect to which such a failure occurs, but the t…

Fraudulent Statement or Failure to Furnish Statement to Employee, Transferee, or Any Other Person Entitled To Receive a Statement. In addition to the criminal penalty provided in section 18144, any person required under the provisions of section 1821 or 1822 or 1823 to furnish a …

False Information With Respect to Withholding. In addition to any criminal penalty provided by law, if: (a) Any individual makes a statement under section 1821 or 1822 or 1823 which results in a decrease in the amounts deducted and withheld, and (b) As of the time such statement …

Imposition of Accuracy-Related Penalty. (a) Imposition of Penalty. If this section applies to any portion of an underpayment of tax required to be shown on a return there shall be added to the tax an amount equal to 20 percent of the portion of the underpayment to which this sect…

Imposition of Fraud Penalty. (a) Imposition of Penalty. If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 75 percent of the portion of the underpayment which is attributable to fraud. (b) De…

Special Rules for Accuracy Related Penalties. (a) Penalties Applicable Only Where Return Filed. The penalties provided in sections 18127 and 18128 of this Division shall apply only in cases where a return of tax is filed (other than a return prepared by the Secretary under the au…

Timely Mailing Treated as Timely Filing and Paying. (a) General Rule. (1) Date Of Delivery. If any return, claim, statement, or other document required to be filed, or any payment req uired to be made, within a prescribed period or on or before a prescribed date under authority o…

Liability for Taxes Withheld or Collected; Failure to Collect and Pay Over Tax, or Attempt to Evade or Defeat Tax. (a) Whenever any person is required to collect or withhold any tax from any other person and to pay over such tax to the Commonwealth, the amount of tax so collected…

Frivolous Return. (a) Civil Penalty. If: (1) Any individual files what purports to be a return of the tax imposed by this Division but which: (A) Does not contain information on which the substantial correctness of the self-assessment may be judged, or (B) Contains information th…

Understatement of Taxpayer’s Liability by CNMI Tax Return Preparer. (a) Understatements Due to Unrealistic Positions. If: (1) Any part of any understatement of liability with respect to any return or claim for refund is due to a position for which there was not a realistic possib…

Other Assessable Penalties With Respect to the Preparation of CNMI Tax Returns for Other Persons. (a) Failure to Furnish Copy to Taxpayer. Any person who is a CNMI tax return preparer with respect to any return or claim for refund who fails to comply with section 1825(a) with res…

Reasonable Cause Exception. The Secretary may waive the penalties imposed under this Article with respect to any portion of an underpayment or any failure by any person if it is shown that there was a reasonable cause and not willful neglect for such portion or such failure and t…

Special Rule on Dual Requirement. Where the same information is required in a return for both NMTIT and taxes other than the NMTIT, the Secretary shall prescribe regulations as to the enforcement of applicable dual penalties. Source: PL 14-35, § 4 (1925).

Time for Performance of Acts Where Last Day Falls On Saturday, Sunday, or Legal Holiday. When the last day prescribed under authority of the Commonwealth Tax laws for performing any act falls on Saturday, Sunday, or a legal holiday, the performance of such act shall be considered…

Attempt to Evade or Defeat Tax. Any person who willfully attempts in any manner to evade or defeat any tax imposed by this Division or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not…