§1421h — Title 48 Territories and Insular Possessions | U.S. Code

Summary

Federal taxes and fees collected in Guam must go into Guam’s treasury and be kept for the Guam government to spend under its yearly budgets. This covers customs duties, federal income taxes on goods made in Guam and sent to the United States or used in Guam, other federal taxes including pay and pensions for federal military and civilian workers who live in Guam, and fees like quarantine, passport, immigration, and naturalization. This does not apply to taxes under chapter 2 or 21 of the Internal Revenue Code of 1986 (26 U.S.C. 1401 et seq., 3101 et seq.). Once Guam adopts a fiscal year that runs October 1 through September 30, the U.S. Secretary of the Treasury must, before each fiscal year starts, send Guam the amount the governor and Guam comptroller estimate will be collected there that year under these rules, except amounts already paid directly into Guam’s treasury. After the year ends, the Secretary must add or subtract the difference between what was actually collected and the amount that was estimated and sent, including any adjustments required by Public Law 94–395 or Public Law 88–170, as amended.

Title 48, §1421h

Territories and Insular Possessions — Source: USLM XML via OLRC

All customs duties and Federal income taxes derived from Guam, the proceeds of all taxes collected under the internal-revenue laws of the United States on articles produced in Guam and transported to the United States, its Territories, or possessions, or consumed in Guam, and the proceeds of any other taxes which may be levied by the Congress on the inhabitants of Guam (including, but not limited to, compensation paid to members of the Armed Forces and pensions paid to retired civilians and military employees of the United States, or their survivors, who are residents of, or who are domiciled in, Guam), and all quarantine, passport, immigration, and naturalization fees collected in Guam shall be covered into the treasury of Guam and held in account for the government of Guam, and shall be expended for the benefit and government of Guam in accordance with the annual budgets; except that nothing in this chapter shall be construed to apply to any tax imposed by chapter 2 or 21 of the Internal Revenue Code of 1986 [26 U.S.C. 1401 et seq., 3101 et seq.]. Beginning as soon as the government of Guam enacts legislation establishing a fiscal year commencing on October 1 and ending on September 30, the Secretary of the Treasury, prior to the commencement of any fiscal year, shall remit to the government of Guam the amount of duties, taxes, and fees which the governor of Guam, with the concurrence of the government comptroller of Guam, has estimated will be collected in or derived from Guam under this section during the next fiscal year, except for those sums covered directly upon collection into the treasury of Guam. The Secretary of the Treasury shall deduct from or add to the amounts so remitted the difference between the amount of duties, taxes, and fees actually collected during the prior fiscal year and the amount of such duties, taxes, and fees as estimated and remitted at the beginning of that prior fiscal year, including any deductions which may be required as a result of the operation of Public Law 94–395 (90 Stat. 1199) or Public Law 88–170, as amended (82 Stat. 863).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The internal-revenue laws of the United States, referred to in text, are classified generally to Title 26, Internal Revenue Code. Public Law 94–395 (90 Stat. 1199), referred to in text, was enacted Sept. 3, 1976, and amended section 1423a of this title. Public Law 88–170, as amended (82 Stat. 863), referred to in text, is Pub. L. 88–170, Nov. 4, 1963, 77 Stat. 302, as amended by Pub. L. 90–511, Sept. 24, 1968, 82 Stat. 863, which is not classified to the Code.

Amendments

1986—Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”. 1984—Pub. L. 98–454 inserted “(including, but not limited to, compensation paid to members of the Armed Forces and pensions paid to retired civilians and military employees of the United States, or their survivors, who are residents of, or who are domiciled in, Guam)” after “inhabitants of Guam” in first sentence. 1978—Pub. L. 95–348 inserted provisions relating to authorization, amount, computation, etc., of remittance, prior to commencement of any fiscal year, of duties, taxes, and fees to be collected in or derived from Guam under this section during that next fiscal year. 1960—Pub. L. 86–778 inserted clause providing that nothing in this chapter shall be construed to apply to any tax imposed by chapter 2 or 21 of title 26.

§1421h Duties, Taxes, and Fees; Proceeds Collected to Constitute Fund for Benefit of Guam; Prerequisites, Amount, Etc., Remitted Prior to Commencement of Next Fiscal Year