Chapter 26

11 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 1 CHAPTER 26 BUSINESS PRIVILEGE TAX LAW NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), eff ective July 17, 2007, all references to Gross Receipts Tax (GRT) have been amended to Business Privilege Tax (BPT). Article 1. General Provisions. Article 2. Business Privilege Taxes. Article 3. Alcoholic Beverage Tax. Article 4. Liquid Fuel Tax. Article 5. Automotive Surcharges. Article 6. Tobacco Tax. Article 7. General Sales Tax. [Repealed.] ARTICLE 1 GENERAL PROVISIONS § 26101. Definitions. § 26102. Administration. § 26103. Tax Debt: Lien. § 26104. Collection. § 26105. Informal Hearing. § 26106. Adjustments. § 26107. Review. § 26107.1. Stay of Collection. § 26108. Suit for Refund. § 26109. Restrictions of Remedies. § 26110. Returns. § 26110.1. Electronic Filing of Monthly Returns Al lowed. § 26111. Penalties. § 26112. Interest. § 26113. Criminal Offenses. § 26114. Punishment. § 26115. Unfair Competition. § 26116. Penalties Separate. § 26117. Tax Exemption. § 26118. Examination of Books and Witnesses. § 26119. Exchange of Tax Information. § 26120. Inspection of Tax Returns and Information: Prohibition.

26116. Penalties Separate. § 26117. Tax Exemption. § 26118. Examination of Books and Witnesses. § 26119. Exchange of Tax Information. § 26120. Inspection of Tax Returns and Information: Prohibition. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 2 § 26101. Definitions. For the purpose of this Chapter except as otherwise specifically provided, the following words and phra ses, together with all of the common derivatives thereof (i.e., v erbs, plurals, feminine gender, etc.), shall have the meaning ascr ibed to them in this Section. (a) Business and engaging in, transacting, conducti ng, continuing, doing or carrying on business includes all activities, whether personal, professional or corpo rate, carried on within Guam for economic benefit, either direct or indirect, but shall not include casual sales. Enga ging in business shall also include the exercise of corpora te franchise powers, but neither the conduct of business as such within or without Guam by an investment company or by an international finance company, as each or either is defined in any law of the United States or Guam, or by any com pany registered as an investment company under the Unite d

vestment company or by an international finance company, as each or either is defined in any law of the United States or Guam, or by any com pany registered as an investment company under the Unite d States Investment Company Act of 1940 nor the exercise of corporate franchise powers by any such corporation, shall constitute either business or engaging in business to the extent that such conduct or exercise within Guam do es not exceed the management and administration of its bus iness and activities incidental thereto, transactions inv olving its capitalization, and the acquisition and disposition of property from which any income would constitute foreign sour ce income pursuant to the provisions of the Guam Incom e Tax Law. Without excluding other activities which may not be considered to be specifically engaging in, transact ing, conducting, continuing, doing or carrying on a busi ness, including those activities specified above, a perso n shall not be considered to be engaging in, transacting, condu cting, continuing, doing or carrying on a business within the meaning of this Division solely by reason of carryi ng on in Guam any one (1) or more of the following activitie s:

n, transacting, condu cting, continuing, doing or carrying on a business within the meaning of this Division solely by reason of carryi ng on in Guam any one (1) or more of the following activitie s: (1) maintaining or defending any action or suit, or any administrative or arbitration proceeding, or COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 3 effecting the settlement thereof or the settlement of claims or disputes; (2) holding meetings of the board of directors or shareholders, or carrying on other activities conce rning internal corporate affairs; (3) maintaining bank accounts; (4) maintaining offices or agencies for the transfe r, exchange and registration of the corporation’s own securities, or appointing and maintaining trustees or depositaries with respect to those securities; (5) effecting sales through independent contractors; (6) soliciting or procuring orders, whether by mail or through employees, agents or otherwise, where th ose orders require acceptance outside Guam before they become binding contracts; (7) creating or acquiring evidences of debt or mortgages, liens, or security interests in real or personal property; (8) securing or

uire acceptance outside Guam before they become binding contracts; (7) creating or acquiring evidences of debt or mortgages, liens, or security interests in real or personal property; (8) securing or collecting one’s own debts or enforcing mortgages and security interests in prope rty securing one’s own debts; (9) owning, without more, real or personal property; (10) conducting an isolated transaction that is completed within ninety (90) days and that is not o ne in the course of a number of repeated transactions of a like nature; and (11) transacting business in interstate commerce. The list of activities in this Subsection is not ex haustive. (b) Primary Contractor shall include every person engaging in the business of contracting to erect, c onstruct, repair or improve any installation of any kind or d escription, or to provide under contract any service or materia l for the COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 4 erection, construction, repair or improvement of an y installation, or to provide under contract, labor t o another for any purpose or use whatsoever, including any other services or products that the project may require.

, repair or improvement of an y installation, or to provide under contract, labor t o another for any purpose or use whatsoever, including any other services or products that the project may require. (1) Subcontractor shall include every person engaging in the business of providing labor, produc ts, or services to a Primary Contractor for a specific pro ject. (c) Drawback shall mean a return to the taxpayer of all or a portion of a tax which he has already paid. (d) Export Trading Company shall mean a person, partnership, association, or similar organization, whether operated for profit or as a nonprofit organization, which does business under the laws of Guam and which is organi zed and operated principally for purposes of (1) exporting goods or services produced in Guam; or (2) facilitating the exportation of goods or servic es produced in the United States or Guam by unaffiliat ed persons by providing one or more export trade servi ces; An export Trading Company must qualify under United States Public Law 97-290 and conform to the require ments and procedures of that Act regarding Export Trading Companies.

re export trade servi ces; An export Trading Company must qualify under United States Public Law 97-290 and conform to the require ments and procedures of that Act regarding Export Trading Companies. (e) Export Trade Service shall mean, but be not lim ited to, consulting, international market research, adve rtising, marketing, insurance, product research and design, legal assistance, transportation, including trade documen tation and freight forwarding, communication and procession of foreign orders to and for exporters and foreign purchasers, warehousing, foreign exchange, financing, and takin g title to goods, when provided in order to facilitate and exp ort of goods or services produced in the United States or Guam. (f) Foreign shall mean that which is outside of Gua m; and domestic shall mean that which is legally withi n Guam. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 5 (g) Gross Income or Gross Proceeds of Sale shall me an the total receipts, cash or accrued, of the taxpaye r received as compensation from whatever activity; such terms sha ll refer to, and shall include, that received by reason of t he investment of the capital of the business

or accrued, of the taxpaye r received as compensation from whatever activity; such terms sha ll refer to, and shall include, that received by reason of t he investment of the capital of the business engaged i n including interest, discount, rentals, royalties, fees, commi ssions, or other emoluments, however designated, and without a ny deductions whatsoever, except that actual bad debts may be excluded in the period in which they accrued. These terms shall not be construed to include the receipts from the sale of bonds or other evidence o f indebtedness, stocks, or from sale of real property nor shall there be included therein cash discounts allowed an d taken on sales, the proceeds of sales when the article is returned by the customer and the sale price refunded to him. (h) Import shall mean and include bringing into Gua m from any source outside of Guam any tangible person al property whatsoever, as well as the property itself . (i) Manufacturer shall mean and include any person engaged in the business of applying labor, by hand or with the aid of machinery, to raw materials or to partia lly processed materials so as to result in a substantia l transformation of such material

ngaged in the business of applying labor, by hand or with the aid of machinery, to raw materials or to partia lly processed materials so as to result in a substantia l transformation of such material into a form capable of use different from that to which it could be put before such substantial transformation. (j) Obligation to the government of Guam shall mean and include any and all taxes, charges, debt, or an ything owed to the government of Guam which at the time is due and delinquent. (k) Person includes any individual, firm, co-partne rship, joint venture, association, corporation, estate, tr ust, limited liability company, limited partnership, limited lia bility partnership, or any other group or combination, for eign or domestic, acting as a unit. (l) Practice of a profession shall mean the renderi ng of a professional service depending on the skill or art of the COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 6 individual so rendering it, exclusive of the sale o f tangible property. (m) Producer shall mean and include any person engaged in the business of growing or extracting na tural resource products in their natural state.

ing it, exclusive of the sale o f tangible property. (m) Producer shall mean and include any person engaged in the business of growing or extracting na tural resource products in their natural state. (n) Resident shall include any person within Guam w ith the intent of making this his fixed place of abode or business for the present. (o) Retail shall mean the sale of tangible personal property, other than by a wholesaler as such within the definition of this Section, for consumption or use by the purchaser and not for resale. (p) Sale means any transfer of title or possession, or both, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property and includes an exchange of properties as well as an ex change of property for money. A transaction whereby the posse ssion of property is transferred but the seller retains titl e as security for the payment of the sale price on a conditional sale, shall be deemed a sale. (q) Storage shall mean and include any keeping or retention in Guam for use or consumption in Guam, o r for any purpose other than sale in the regular course o f business.

le, shall be deemed a sale. (q) Storage shall mean and include any keeping or retention in Guam for use or consumption in Guam, o r for any purpose other than sale in the regular course o f business. (r) Tax Commissioner shall mean and include the per son performing the duties of Commissioner of Revenue an d Taxation for the government of Guam and who is char ged with the administration and enforcement of the prov isions of this Chapter. (s) Taxpayer shall mean any person against whom a t ax is levied, or who is liable for payment of any tax, or who is required to file a return under this Chapter whethe r such person owes a tax or not. (t) Use shall mean and include the exercise of any right or power incident to the ownership of tangible prop erty, or interest therein, except that it shall not include the keeping for sale of such property in the regular course of business. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 7 (u) Value shall mean the fair and reasonable cash v alue in Guam. (v) Vessels engaged in commercial fishing shall mea n those vessels solely employed in the activity of ca tching fish for commercial sale and those vessels used to suppo rt

nable cash v alue in Guam. (v) Vessels engaged in commercial fishing shall mea n those vessels solely employed in the activity of ca tching fish for commercial sale and those vessels used to suppo rt such vessels such as provisioning vessels and tanker ves sels. (w) Wholesale shall mean the sale of tangible perso nal property by a person doing a regularly organized wh olesale business, known to the trade as such, and licensed to do business as such, to a person for the purpose of re sale. SOURCE: GC § 19500. Subsection (a) amended by P.L. 16-065; Subsections (d) and (e) added by P.L. 17-067:1 & 2; subsection (v) added by P.L. 18-002:6; Subsection (v) amended by P.L. 24 -205:9; Subsections (a) and (k) amended by P.L. 27-057:3 and 4, respect ively. Subsection (b) amended by P.L. 33-194:2 (Dec. 15, 2016). 2017 NOTE: References in subsections (f) and (n) to 'territory ' removed pursuant to 1 GCA § 420. § 26102. Administration. The following provisions shall govern the administr ation of this entire Chapter and shall apply to all taxes le vied hereunder. (a) Tax District. Guam shall comprise one (1) taxin g district only and no subdivision thereof shall be m ade for the purpose of this

is entire Chapter and shall apply to all taxes le vied hereunder. (a) Tax District. Guam shall comprise one (1) taxin g district only and no subdivision thereof shall be m ade for the purpose of this Chapter. (b) Tax Commissioner. The Commissioner of Revenue and Taxation of the government of Guam (herein know n as the Tax Commissioner) shall have the following duti es, powers and authority: (1) Subordinates. With the approval of the Director of Revenue & Taxation, to designate from among the employees in his division such deputy collectors an d internal revenue agents as may be required; provide d, however, that the hiring and removal of all such employees shall be done in accordance with the personnel laws and regulations. (2) Assessment. He shall make all assessments of taxes levied by this Chapter. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 8 (3) Collection. He shall be responsible for the act s of his assistants, the Tax Collector, the Deputy Ta x Collector and the Internal Revenue agents and, for the enforcement and collection of all taxes imposed by this Chapter. (4) Construction of revenue laws.

ssistants, the Tax Collector, the Deputy Ta x Collector and the Internal Revenue agents and, for the enforcement and collection of all taxes imposed by this Chapter. (4) Construction of revenue laws. He shall construe the tax and revenue laws, the administration of whi ch are within the scope of his official duties, whenev er requested by any officer acting under law, or by an y interested person, provided that the Attorney Gener al’s Office shall give him such aid and assistance as he may require. (5) Enforcement of penalties. He shall see that all penalties provided for in this Chapter are enforced . (6) Inspection and examination of records. He shall have authority to inspect and examine the records, books of account, bank statements, taxpayer’s copy of Fed eral income tax return, any other tax return made to the government of Guam, and any other pertinent data having relevancy to the return in question for the purpose of enabling him to obtain the information necessary to enforce the provisions of this Chapter ; these powers and duties may be delegated to the Assistant Commissioner, the Tax Collector, the Depu ty Tax Collectors and the Internal Revenue agents, or any other

ce the provisions of this Chapter ; these powers and duties may be delegated to the Assistant Commissioner, the Tax Collector, the Depu ty Tax Collectors and the Internal Revenue agents, or any other person designated by him. (7) Rules and Regulations. With approval of the Director of Revenue & Taxation, he shall make such rules and regulations as he may deem proper within the scope of the law to carry out the purpose of this C hapter effectually, subject to the approval of the Governo r of Guam. (8) Forms. He shall prescribe by regulation the forms required for the administration and collectio n of all taxes levied by this Chapter. (9) Compromises. With the approval of the Director of Revenue & Taxation, he shall have autho rity COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 9 to compromise claims arising out of any tax law wit hin the scope of his administration; and in the case of any such compromise he shall place on file a statement setting forth: (A) The amount of the tax assessed or which could have been assessed by or in accordance with law; (B) The amount of penalties and interest imposed, or which could have been imposed in accordance with law;

e amount of the tax assessed or which could have been assessed by or in accordance with law; (B) The amount of penalties and interest imposed, or which could have been imposed in accordance with law; (C) The reasons for the compromise; and (D) The approval of the Director of Revenue & Taxation. (10) Agreement for payment. He may enter binding agreements for the installment liquidation of any t ax debt due the government of Guam as he may deem to b e for the benefit of the government of Guam. (11) Extension of time. He may approve any reasonable extension of time for the filing of a re turn or the payment of tax under this Chapter as he may dee m necessary. (12) Refunds and Interest. He shall authorize the Treasurer of Guam, by certification, to make refund of any overpayment of a tax made by taxpayer or any assessment erroneously or illegally made and collec ted; provided, that such refunds as are herein authorize d are to be made out of the funds in the Treasury which w ere derived from the collection of the tax under which the refund is made; provided, further, that the governm ent of Guam will pay interest at an annual rate establi shed under § 26112 of 11 GCA on all moneys

d from the collection of the tax under which the refund is made; provided, further, that the governm ent of Guam will pay interest at an annual rate establi shed under § 26112 of 11 GCA on all moneys erroneously o r illegally assessed and collected, such interest to run from the date of the overpayment. Where a refund of any tax or portion thereof is due a taxpayer and the sa id taxpayer has any obligation owing to the government of Guam, regardless of how such obligation was accrued , COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 10 the refund or such necessary part thereof, shall be applied to the obligation so owing. (13) Notice and demand. He shall give written notice of tax liability, and make written demand fo r the payment of the same, whenever any return and remittance required under this Chapter is not made within the time allotted for such return and remitt ance. Such notice and demand shall be sent by mail, or be delivered by the Tax Commissioner or his representative, to the taxpayer’s dwelling or place of business as listed on his business license, or to h is last known address. (c) Apportionment.

il, or be delivered by the Tax Commissioner or his representative, to the taxpayer’s dwelling or place of business as listed on his business license, or to h is last known address. (c) Apportionment. If any person is engaged in busi ness both within and without Guam, and if, under the Con stitution or laws of the United States, the entire gross inco me or scope of such business activity of such person cannot be included in the measure of any tax under this Chapter, there shall then be apportioned to Guam and included in the tax base that portion of the gross income or business activity wh ich is derived from or attributable to Guam. (d) Tax collected declared Guam Funds. The taxes levied, assessed and collected under this Chapter s hall become funds of Guam from the moment of collection and shall be subject to all laws, rules and regulations pertaining thereto, and unless specifically provided by law, a ll such taxes collected shall be covered into the Treasury of Guam as part of the General Fund. (e) Limitation of time. Except as otherwise provide d in this Subsection, the amount of any tax imposed by t his Chapter shall be assessed within three (3) years af ter the return was

e General Fund. (e) Limitation of time. Except as otherwise provide d in this Subsection, the amount of any tax imposed by t his Chapter shall be assessed within three (3) years af ter the return was filed (whether or not such return was fi led on or after the date prescribed). A return filed before t he last day prescribed by law for the filing thereof shall be c onsidered as filed on such last day. No proceeding in court with out assessment for the collection of such tax shall be begun after the expiration of such period. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 11 (1) False return. In the case of a false or fraudul ent return with the intent to evade any tax imposed by this Chapter, the tax may be assessed, or a proceeding i n court for the collection of such tax may be begun without assessment, at any time. (2) Willful attempt to evade tax. In the case of a willful attempt in any manner to defeat or evade an y tax imposed by this Chapter, the tax may be assessed, o r a proceeding in court for the collection of such tax may be begun without assessment, at any time. (3) No return.

ner to defeat or evade an y tax imposed by this Chapter, the tax may be assessed, o r a proceeding in court for the collection of such tax may be begun without assessment, at any time. (3) No return. In the case of failure to file a ret urn, the tax may be assessed, or a proceeding in court f or the collection of such tax may be begun without assessm ent, at any time. (4) Extension of time to assess. Where, before the expiration of the time prescribed in Subsection 261 02(e) for the assessment of any tax imposed by this Chapt er, both the Tax Commissioner and the taxpayer have consented in writing to its assessment after such t ime, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreement s in writing made before the expiration of the period previously agreed upon. (f) Period of limitation on filing claim for refund . Claim for credit or refund of an overpayment of any tax i mposed by this Chapter in respect of which tax the taxpayer i s required to file a return shall be filed by the taxpayer wit hin three (3) years from the time the return was required to be f iled (determined without

hapter in respect of which tax the taxpayer i s required to file a return shall be filed by the taxpayer wit hin three (3) years from the time the return was required to be f iled (determined without regard to any extension of time ) or two (2) years from the time the tax was paid, whichever of such periods expires the later, or if no return was file d by the taxpayer, within two (2) years from the time the ta x was paid. Provided, that any claim for credit or refund of a tax imposed by this Chapter which accrued prior to the effectiv e date of this Subsection shall be filed by the taxpayer with in three (3) years from the time the return was required to be f iled determined without regard to any extension of time and two COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 12 (2) years from the time the tax was paid, whichever of such periods expires the later, or if no return was file d by the taxpayer, within two (2) years from the time the ta x was paid; or within three (3) months after the effective date of this Subsection, whichever of such periods expires the l ater; provided, further, that no claim shall be filed for credit or refund of a tax imposed by

in three (3) months after the effective date of this Subsection, whichever of such periods expires the l ater; provided, further, that no claim shall be filed for credit or refund of a tax imposed by this Chapter which was p aid more than four (4) years prior to the effective date of this Subsection. (g) Claim for drawback; limitation. Any claim for drawback authorized under this Chapter shall not be filed earlier than the twentieth (20th) day of the month following the month in which the transaction or event occurre d for which a drawback is authorized, and shall not be fi led later than one (1) year after the date of such transactio n or event. (h) Revenue Ruling. The Tax Commissioner shall assess a fee of Five Hundred Dollars ($500.00) for each request for a revenue ruling on the tax laws of Gua m except when a different fee is identified and assessed by the Internal Revenue Code. SOURCE: GC § 19501. Subsection (b) (12) amended by P.L. 1 3-104:2 (Nov. 24, 1975) and P.L. 18-030:27 (Feb. 19, 1986). Subsection (h) added by P.L. 29-002:V:I:18 (May 18, 2007). 2017 NOTE: References to 'Territory' and 'territorial' removed pursuant to 1 GCA § 420. NOTE: P.L.

1975) and P.L. 18-030:27 (Feb. 19, 1986). Subsection (h) added by P.L. 29-002:V:I:18 (May 18, 2007). 2017 NOTE: References to 'Territory' and 'territorial' removed pursuant to 1 GCA § 420. NOTE: P.L. 13-104:2 incorrectly cited § 19500.0212 as t he section to be amended, rather than § 19501.0212. § 26103. Tax Debt: Lien. Any tax levied, due and uncollected under this Chap ter shall be a debt due the government of Guam and shall be a lien upon any property of the debtor, then owned or subsequen tly acquired by him, for the amount of the unpaid balance plus a ll penalties and interest attached thereto and thereafter accruing. Such lien shall not be valid as against any purchaser, mortgagee, p ledgee or judgment creditor until assessment has been made an d the Tax Commissioner has filed notice of the lien in the ma nner and place as hereinafter provided. With regard to real proper ty, the lien shall COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 13 apply to both registered and unregistered real prop erty; and real property includes both land and improvements on lan d. (a) Filing. Such notice of lien shall be filed in t he Department of Land Management.

both registered and unregistered real prop erty; and real property includes both land and improvements on lan d. (a) Filing. Such notice of lien shall be filed in t he Department of Land Management. (b) Form. The notice of lien shall be in such form as shall be prescribed by the Tax Commissioner. (c) Release. Subject to regulations issued pursuant to this Chapter, the Tax Commissioner may issue a cert ificate or release of any lien imposed by this Section if - (1) The Tax Commissioner finds that the liability secured by the lien has been fully satisfied or has become legally unenforceable; or (2) There is furnished to the Tax Commissioner and accepted by him a bond that is conditioned upon the payment of the liability secured by the lien within the time prescribed by the Tax Commissioner, and that i s in accordance with such requirements relating to terms , conditions and form of the bond and sureties, as ma y be specified by such regulations. (d) Partial discharge of property; property double amount of liability. Subject to regulations issued pursuant to this Chapter, the Tax Commissioner may issue a cert ificate of discharge of any part of the property subject to any lien

property double amount of liability. Subject to regulations issued pursuant to this Chapter, the Tax Commissioner may issue a cert ificate of discharge of any part of the property subject to any lien imposed by this Section if the Tax Commissioner fin ds that the fair market value of that part of such property remaining subject to the lien is at least double the amount o f the unsatisfied liability secured by such lien and the amount of all other liens upon such property which have prior ity to such lien. (e) Partial discharge of property; part payment or where interest valueless. Subject to regulations issued p ursuant to this Chapter, the Tax Commissioner may issue a cert ificate of discharge of any part of the property subject to the lien if - (1) There is paid over to the Tax Commissioner in part satisfaction of the liability secured by the l ien an COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 14 amount determined by the Tax Commissioner, which shall not be less than the value, as determined by the Tax Commissioner, of the interest of the government of Guam in the part to be so discharged; or (2) The Tax Commissioner determines at any time that the

t be less than the value, as determined by the Tax Commissioner, of the interest of the government of Guam in the part to be so discharged; or (2) The Tax Commissioner determines at any time that the interest of the government of Guam in the part to be so discharged has no value. In determining the value of the interest of the government of Guam in the part to be so discharged pursuant to this Section, the Tax Commissioner shall give consideration to the fair market value of such part and to such liens thereon as have priority to the lien of the g overnment of Guam. SOURCE: GC § 19502. § 26104. Collection. The office of the Tax Commissioner shall have avail able for the enforcement of any delinquent tax assessment, t he following remedies: (a) Suit. The Tax Commissioner, the Assistant Tax Commissioner, the Tax Collector, or a Deputy Tax Co llector may require the Office of the Attorney General to t ake such legal action as it shall deem proper and for the be nefit of the government of Guam, provided that the following con ditions have been complied with: (1) Written notice of the assessment shall have been sent by the Tax Commissioner to the taxpayer setting forth the date

ment of Guam, provided that the following con ditions have been complied with: (1) Written notice of the assessment shall have been sent by the Tax Commissioner to the taxpayer setting forth the date originally due, the amount o f the tax principal, and the amount of the penalties and interest and the rate at which such penalties and i nterest have accrued. Such written notice shall be sent to the taxpayer at the address listed by him on his busine ss license, or if he has none, to his last known addre ss. (2) That at least thirty (30) days have elapsed sin ce the date of such written notice; and (3) That the taxpayer has not, within such thirty (30) day period, paid such tax plus all penalties a nd COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 15 interest in full or made a binding agreement for th e payment of the same. (b) Distress. The Tax Commissioner may issue a warrant for the collection of any tax levied under this Chapter, plus penalties and interest accrued in acc ordance with law, directed to the Marshal of the Superior C ourt; such warrant shall have the same force and effect as a w rit of execution issued by a court and it shall be levied and

accrued in acc ordance with law, directed to the Marshal of the Superior C ourt; such warrant shall have the same force and effect as a w rit of execution issued by a court and it shall be levied and sale made pursuant to it in the same manner as a writ of execution. The Marshal shall receive, upon completion of his s ervices pursuant to such warrant, and the Tax Commissioner is authorized to so pay to the said Marshal, the same fees, commissions and expenses in connection with such se rvices as are provided by law for similar services pursuan t to a writ of execution. (c) Injunction. The Tax Commissioner may request th e Office of the Attorney General to seek in a court o f competent jurisdiction an injunction to restrain an y person who is delinquent in the payment of any tax levied under this Chapter from continuing to carry on his business un til such delinquent tax liability is paid, provided that the conditions set forth in § 26104(a) are first complied with, an d provided further, that such action is in the interest of the Government. SOURCE: GC § 19503. § 26105. Informal Hearing.

vided that the conditions set forth in § 26104(a) are first complied with, an d provided further, that such action is in the interest of the Government. SOURCE: GC § 19503. § 26105. Informal Hearing. If the taxpayer or person required by this act to r emit taxes shall feel aggrieved by the assessment, he shall ha ve the right within thirty (30) days of notice of such assessmen t to request from the Tax Commissioner an informal hearing on th e assessment and at that time the taxpayer may submit such data as may be relevant. (a) The taxpayer must request such informal hearing by writing to the Tax Commissioner and the Tax Commiss ioner must notify the taxpayer of the time and place of s uch hearing in writing. The decision of the Tax Commissioner on such informal hearing shall be in writing and be given w ithin thirty (30) days from the date of the completion of the he aring. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 16 (b) The informal hearing provided by this Section m ay be waived by the taxpayer within thirty (30) days o f notice of the assessment. Such waiver shall be made by writte n notice to the Tax Commissioner, and shall state that such

ed by this Section m ay be waived by the taxpayer within thirty (30) days o f notice of the assessment. Such waiver shall be made by writte n notice to the Tax Commissioner, and shall state that such informal hearing is waived. When such informal hearing is wa ived in accordance with this Subsection the taxpayer may, w ithin thirty (30) days from the date of such notice of wa iver, bring an action for review of the assessment in accordanc e with § 26107. NOTE: Manila Trading and Supply Co. (Guam) v. Maddox (1964), 335 F.2d 150. SOURCE: GC § 19504. § 26106. Adjustments. If the Tax Commissioner decides after informal hear ing that the tax was not assessed in accordance with the law s, rules and regulations pertaining thereto, he shall make such adjustments as are necessary to correct the assessment and then gi ve written authority to the Treasurer of Guam to make any nece ssary refund where the tax has been overpaid, or he shall assess the tax as determined, or he shall abate such assessment, as m ay be necessary. SOURCE: GC § 19505. § 26107. Review. (a) If the Tax Commissioner’s decision is adverse t o the taxpayer in whole or in part, the taxpayer shall ha ve the right within

ssessment, as m ay be necessary. SOURCE: GC § 19505. § 26107. Review. (a) If the Tax Commissioner’s decision is adverse t o the taxpayer in whole or in part, the taxpayer shall ha ve the right within thirty (30) days from the date of such decis ion to institute an action for review, irrespective of the amount, i n the Superior Court of Guam. Such action shall be commenced by fi ling a petition setting forth assignments of all errors al leged to have been committed by the Tax Commissioner in his determinat ion of the assessment, the facts relied upon to sustain such a ssignments of errors, and a prayer for appropriate relief. The Ta x Commissioner or his successor in office shall be the respondent in such proceeding. Such action shall be tried by the Court without a jury, and the petitioner shall have the burden of proof e xcept with regard to any finding of fraud. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 17 (b) When the decision of the Court becomes final, o r any appeal therefrom, the Tax Commissioner shall, upon presentation of a certified copy of the decree, make such adjust ments as are necessary to correct, amend or abate the assessment in

final, o r any appeal therefrom, the Tax Commissioner shall, upon presentation of a certified copy of the decree, make such adjust ments as are necessary to correct, amend or abate the assessment in conformity therewith, including the taking of action in accord ance with § 26102(b)(12) [Refunds & Interest] where appropriate . (c) The Court shall have jurisdiction to redetermin e the correct amount of the deficiency, even if the amoun t so determined is greater than the amount of the assess ment, and to determine whether any additional amount should be a ssessed. (d) Where the assessment is paid, in whole or in pa rt, after the filing of the petition, the Court shall not the reby be deprived of jurisdiction. (e) The Court shall have authority to implement by rule proceedings authorized by this section. SOURCE: GC § 19506 as added by P.L. 05-132:2 (Aug. 29, 19 60). Subsection (a) amended by P.L. 06-060:2 (Feb. 14, 1 962). NOTE: Pursuant to P.L. 12-085 (Court Reorganization Act of 1974), references to 'Island Court' were altered to 'Super ior Court.' COURT DECISIONS: See citation to § 26107.1, below. § 26107.1 Stay of Collection.

ant to P.L. 12-085 (Court Reorganization Act of 1974), references to 'Island Court' were altered to 'Super ior Court.' COURT DECISIONS: See citation to § 26107.1, below. § 26107.1 Stay of Collection. Pending decisions under an informal hearing pursuan t to § 26104, or pending a review pursuant to § 26107, the taxpayer may stay collection of an assessment, by furnishing a bond or other security in such amount as the Tax Commissioner may deem necessary, not exceeding double the amount of the t ax, with penalties and interest, as to which the stay is des ired. SOURCE: GC § 19507 as added by P.L. 05-132:3. COMMENT: The District Court of Guam Case, Blaz v. Perez (Real Party in Interest, Guam Oil & Refining Co. Inc.) Civ. Case 6-72 (Jan. 24, 1972) is not published and was shown to the Compiler of L aws in December 1995. As part of the ruling, the District Court hel d: That § 19507 [this section] of the Government Code of Guam has never been repealed and is still in effect; tha t the alleged repeal of §19507 of the Government Code of Guam as set forth in the current 1970 edition is a compiler’s error; that §19507 of the Government Code of Guam as set forth in the 1970 COL6/6/202211 GCA

d repeal of §19507 of the Government Code of Guam as set forth in the current 1970 edition is a compiler’s error; that §19507 of the Government Code of Guam as set forth in the 1970 COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 18 edition is not codified and not binding on anyone a s it is not the law; and that the compiler thereof cannot legis late and had no authority to publish §19507 of the Government Co de of Guam as such section appears in the current 1970 ed ition of such code. AG OPINION: See DRT 90-1218 (8/31/90) which arrives at the sam e conclusion as did Blaz v. Perez , but through independent reasoning. It appears that the Attorney General was, at that time , unaware of the controlling case. § 26108. Suit for Refund. A taxpayer may file an action in the Superior Court of Guam, irrespective of the amount involved, for the refund of any tax imposed by this Chapter, alleged to have been erron eously or illegally assessed or collected, or of any penalty claimed to have been illegally or erroneously collected, or of any sum collected alleged to have been excessive, naming the Tax Comm issioner or his successor in office as defendant.

r of any penalty claimed to have been illegally or erroneously collected, or of any sum collected alleged to have been excessive, naming the Tax Comm issioner or his successor in office as defendant. SOURCE: GC § 19508. 2013 NOTE: Subsection designation was removed to adhere to t he Compiler’s general codification scheme pursuant to the authority granted by 1 GCA § 1606. § 26109. Restrictions of Remedies. Each and every remedy, or other provision, containe d in this Chapter is expressly restricted to causes of action or other grievances which arise out of, and because of, the levy, assessment, collection or payment of a tax under th is Chapter only, and is not intended to be retroactive in its effect to apply to taxes levied, assessed, collected or paid under oth er or prior tax laws of the government of Guam. SOURCE: GC § 19512. § 26110. Returns. All taxpayers against whom a tax is levied by the p rovisions of this Chapter shall file returns in the manner, a nd at the time herein provided, and shall make payments of the tax in accordance therewith. Such returns shall be made to the Tax Co mmissioner.

ns of this Chapter shall file returns in the manner, a nd at the time herein provided, and shall make payments of the tax in accordance therewith. Such returns shall be made to the Tax Co mmissioner. (a) Monthly Returns for Alcoholic Beverage Tax, Liquid Fuel Tax, Automotive Surcharges and Tobacco Tax. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 19 (1) Each taxpayer against whom a tax is levied by the provisions of Articles 3, 4, 5, and 6 of this C hapter shall make and file monthly returns of taxes with the Tax Commissioner on or before the twentieth (20th) day following the close of the calendar month in which the taxes shall accrue, and in the form and in accordan ce with the rules and regulations by the Tax Commissio ner. (2) Except as may be specifically hereinafter provided, payment covering the full amount of tax liability as evidenced by the monthly return shall accompany such monthly return. (b) Monthly Returns for Business Privilege Tax. E ach taxpayer against whom a tax is levied under the pro visions of Article 2 of this Chapter, whether such taxpayer ow es taxes or not, shall make and file monthly returns of taxe s with the Tax Commissioner.

yer against whom a tax is levied under the pro visions of Article 2 of this Chapter, whether such taxpayer ow es taxes or not, shall make and file monthly returns of taxe s with the Tax Commissioner. Business Privilege Taxpayers shal l file monthly Business Privilege Tax returns summarizing the tax due. The monthly return shall be filed, and any ta x then due shall be paid no later than the twentieth (20th) da y of the following month at authorized banks, financial inst itutions or at designated offices of the government of Guam. (c) Annual information return. Any person engaged i n any business, or activity of a business nature, whi ch has been declared tax exempt by the Tax Commissioner, as pro vided in this chapter, shall be required to file annually , not later than ninety (90) days following the close of such p erson’s tax year, an information return setting forth therein t he nature of such business, the tax exemption given by the Tax Commissioner, the gross income of such business and any other information required in the rules and regulat ions promulgated by the Tax Commissioner. (d) Erroneous Returns.

exemption given by the Tax Commissioner, the gross income of such business and any other information required in the rules and regulat ions promulgated by the Tax Commissioner. (d) Erroneous Returns. If any return is erroneous i n any respect, the Tax Commissioner shall assess the prop er amount and so notify the taxpayer in writing. If su ch corrected assessment is less than the tax remitted by the taxpayer, the tax Commissioner shall direct the Tre asurer of Guam to make such refund. If the corrected assessme nt is more than that computed by the taxpayer in his retu rn, the COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 20 taxpayer shall have thirty (30) days from receipt o f the Tax Commissioner’s notice, or until the expiration of t he time granted by the law levying such tax, whichever is g reater, in which to pay such additional assessment before it b ecomes delinquent. (e) Tax Year. The tax year shall be the calendar ye ar, except that a taxpayer may use an annual accounting period when written permission is obtained from the Tax Commissioner. (f) Consolidated Returns of Interrelated Businesses of Like Character.

ye ar, except that a taxpayer may use an annual accounting period when written permission is obtained from the Tax Commissioner. (f) Consolidated Returns of Interrelated Businesses of Like Character. When any taxpayer required to file a return under this Section is engaged in two (2) or more bu sinesses, or business activities, which are interrelated and of like character, such taxpayer may file a consolidated re turn covering all business activities which are thus int errelated and of like character. (g) Returns of Interrelated Businesses of Different Character. When any taxpayer required to file a ret urn under this Section is engaged in two (2) or more business es, or business activities, which may or may not be interr elated but are of such different character that a different ta x is levied against each, such taxpayer must file separate retu rns covering each such business activity. SOURCE: § 19513 GC. Subsection (g) added by P.L. 17-056:2 and repealed and by P.L. 18-007:9. Repealed and reenact ed by P.L. 24-012:3. Subsection (b) amended by P.L. 27-076:4. Amended b y P.L. 29-002:VI:28 (May 18, 2007), so that reference to Gross Receipts Tax was amended to Business Privilege

ealed and reenact ed by P.L. 24-012:3. Subsection (b) amended by P.L. 27-076:4. Amended b y P.L. 29-002:VI:28 (May 18, 2007), so that reference to Gross Receipts Tax was amended to Business Privilege Tax. Subsection (a) amended by P .L. 34-087:2 (Mar. 16, 2018) and P.L. 34-113:7 (July 17, 2018). 2018 NOTE: Subitem designations added pursuant to authority of 1 GCA § 1606. § 26110.1. Electronic Filing of Monthly Returns Req uired. (a) Monthly business privilege tax returns filed pu rsuant to § 26110(b) of this Article shall be electronically filed with the Department of Revenue and Taxation. Exemptions to t his Section due to extreme hardship shall be made at the discre tion of the Director of the Department of Revenue and Taxation. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 21 (b) The Department of Revenue and Taxation shall pu blish for three (3) consecutive weeks in a newspaper of g eneral circulation within Guam, notices informing the publ ic of the date of implementation of mandatory electronic filing of monthly business privilege tax returns. Additionally, the D epartment shall provide other notices to adequately inform taxpayer s of mandatory

date of implementation of mandatory electronic filing of monthly business privilege tax returns. Additionally, the D epartment shall provide other notices to adequately inform taxpayer s of mandatory electronic filing of monthly returns, thr ough dissemination of notices to each business privilege taxpayer, at the time of filing their monthly return, and by posting notices in no fewer than nineteen (19) public places. For the pur poses of this Section, notice shall be provided no later than fou rteen (14) calendar days prior to the implementation of this S ection and contain the following: (1) the date of implementation of the mandatory electronic filing of monthly business privilege tax returns; (2) the web address for electronic filing of monthl y returns; and (3) the acceptable methods of payment and any corresponding convenience fees for payments made electronically. (c) The Department of Revenue and Taxation shall pr ovide computer kiosks at its main office location to allo w for business privilege taxpayers to electronically file monthly returns. (d) Effective Date. The provisions in this Section shall become effective on February 1, 2021. SOURCE: Added by P.L. 24-012:4.

for business privilege taxpayers to electronically file monthly returns. (d) Effective Date. The provisions in this Section shall become effective on February 1, 2021. SOURCE: Added by P.L. 24-012:4. Amended by P.L. 25-089. R epealed by P.L. 27-076:5 (Mar. 10, 2004). Added as uncodif ied law by P.L. 27- 076:10 (Mar. 10, 2004) and codified by the Compiler . Amended by P.L. 29-002:VI:28 (May 18, 2007), so that reference to G ross Receipts Tax was amended to Business Privilege Tax. Amended by P.L. 35-099:XII:25 (Sep. 15, 2020). § 26111. Penalties. The following penalties are hereby levied and shall be assessed and collected by the Tax Commissioner: (a) Late payment. In case of failure to pay the amo unt shown as tax on any return required under this Chap ter on or COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 22 before the date prescribed for payment of such tax, unless it is shown that such failure is due to reasonable cau se and not due to willful neglect, there shall be imposed in a ddition to other penalties provided herein, a specific penalty to be added to the tax in the amount of five percent (5%) of th e amount of such tax if the failure is not more

re shall be imposed in a ddition to other penalties provided herein, a specific penalty to be added to the tax in the amount of five percent (5%) of th e amount of such tax if the failure is not more than thirty (30) days, with the additional five percent (5%) for each addi tional thirty (30) days, or fraction thereof, not to excee d twenty-five percent (25%) in the aggregate. Provided, that the minimum penalty shall be the lesser of the amount of tax du e or Twenty-five Dollars ($25.00). (b) False and fraudulent returns. If any part of an y deficiency is due to fraud with intent to evade the tax, or any portion thereof, fifty percent (50%) of the total a mount of such deficiency, in addition to the penalties provi ded in subsection (a) above, shall be assessed and added t o the deficiency assessment. (c) Failure to Supply Identifying Number. Every per son required to file returns or pay taxes, as prescribe d under §§ 26110 and 26110.1 of this Chapter, shall include hi s taxpayer identification on such return, statement or other d ocument. If any person fails to comply with such requirement, s uch person shall, unless it is shown that such failure is due to reasonable cause and

entification on such return, statement or other d ocument. If any person fails to comply with such requirement, s uch person shall, unless it is shown that such failure is due to reasonable cause and not to willful neglect, pay a penalty of Fifty Dollars ($50.00) for each failure. (d) Late Deposit. [Repealed.] SOURCE: GC § 19514, repealed and reenacted by P.L. 18-015: X:40 and by P.L. 18-030:28. Subsection (c) added by P.L. 24- 012:5. Subsection (d) added by P.L. 24-034:12; repealed by P.L. 27-076:6. § 26112. Interest. If any tax or penalty imposed by this Chapter is no t paid on or before the date prescribed for such payment, in addition to such tax and penalties, interest on the unpaid balance o f the tax and penalties at an annual rate established under this Section, shall be collected for the period from its due date until th e date it is paid. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 23 (a) Determination of Rate of Interest. The annual r ate established under this Section shall be such adjust ed rate as established by the Tax Commissioner. (b) Establishment of Adjusted Rate.

LAW 23 (a) Determination of Rate of Interest. The annual r ate established under this Section shall be such adjust ed rate as established by the Tax Commissioner. (b) Establishment of Adjusted Rate. If the adjusted prime rate charged by banks, rounded to the nearest full percent, during the six-month period ending Septemb er 30 of any calendar year, or during the six-month period e nding on March 31 of any calendar year, differs from the int erest rate in effect under this Section on either such date, r espectively, then the Tax Commissioner shall establish, within f ifteen (15) days after the close of the applicable six-mon th period, an adjusted rate of interest equal to such adjusted prime rate. (c) Effective date of Adjustment. Any adjusted rate of interest established under Subsection (b) of this S ection shall be effective on January 1 of the succeeding year in the case of an adjustment attributable to the six-month peri od ending on September 30 and on July 1 of the same year in t he case of an adjustment attributable to the six-month peri od ending on March 31. (d) Definition of Prime Rate.

le to the six-month peri od ending on September 30 and on July 1 of the same year in t he case of an adjustment attributable to the six-month peri od ending on March 31. (d) Definition of Prime Rate. For purposes of this Section, the term adjusted prime rate charged by ba nks means the average predominant prime rate quoted by commer cial banks to large business, as determined by the Board of Governors of the Federal Reserve System. SOURCE: GC § 19515, as amended by P.L. 13-082 and R/R by P .L. 18- 015:X:39. § 26113. Criminal Offenses. It shall be unlawful for any person: (a) To refuse or fail to make any return provided t o be made in this Chapter; (b) To make any false or fraudulent return or false statement in any return, with intent to defraud the government of Guam or to evade the payment of any t ax, or any portion thereof, imposed by this Chapter; COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 24 (c) To aid or abet another in any attempt to evade the payment of any tax, or any portion thereof, imposed by this Chapter. SOURCE: GC § 19516. § 26114. Punishment. Any person violating any of the provisions of this Chapter shall be guilty of a misdemeanor.

ment of any tax, or any portion thereof, imposed by this Chapter. SOURCE: GC § 19516. § 26114. Punishment. Any person violating any of the provisions of this Chapter shall be guilty of a misdemeanor. On conviction the reof by a court of competent jurisdiction, any license issued for t he operation of such business shall be suspended upon such convicti on for at least the period of any imprisonment imposed therefor plu s six (6) months, and if no imprisonment is ordered, for a pe riod of at least six (6) months. SOURCE: GC § 19517, as amended by P.L. 13-187. § 26115. Unfair Competition. It shall be unlawful for any taxpayer under this Ch apter to advertise, or hold out to the public in any manner, directly or indirectly, that any tax levied hereunder is not co nsidered as an element of the purchase price. Any person found gui lty by a court of competent jurisdiction of violating this Section shall be guilty of a violation punishable by fine of not more than Fifty Dollars ($50.00) for each separate offense. SOURCE: GC § 19519, as amended by P.L. 13-187. COURT DECISIONS: The Supreme Court of Guam found in Guam v. Marfega Trading Co., Inc.

of not more than Fifty Dollars ($50.00) for each separate offense. SOURCE: GC § 19519, as amended by P.L. 13-187. COURT DECISIONS: The Supreme Court of Guam found in Guam v. Marfega Trading Co., Inc. , Guam Supreme Court, 1998 Guam 4 ¶ 27: '[I]t is clear in this situation that the Defendant-Appel lee misrepresented the inclusion of the GRT as part of the purchase price and, further, misrepresented it as a tax above the purchase price which was imposed by the government. The overall message of the Attorne y General Opinion is that if additional language indicates that the GRT is not being passed on to the consumer as part of the purchase price it is a violation of Section 26115. This is what occurred in this situation.' § 26116. Penalties Separate. The criminal offenses provided herein shall be sepa rate from, and in addition to, all other penalties or interest provided for in this Act. SOURCE: GC § 19520. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 25 § 26117. Tax Exemption. If any person desires to claim exemption from any t ax levied under this Chapter by virtue of a specific exemptio n allowed herein, he may be required to furnish the Tax Commi

§ 26117. Tax Exemption. If any person desires to claim exemption from any t ax levied under this Chapter by virtue of a specific exemptio n allowed herein, he may be required to furnish the Tax Commi ssioner a statement under oath setting forth: (a) The character of the business; (b) The provision under which such exemption is claimed; (c) Such additional information as the Tax Commissioner may require or as may be prescribed un der the rules and regulations formulated and put into effec t under authority of this Chapter; (d) Upon presentation of the foregoing information, or as much of it as may be required, the Tax Commissio ner shall determine whether the activity is taxable or exempt from tax; (e) The decision of the Tax Commissioner regarding the taxability of any person or business shall be bindi ng, except: (1) When reversed on appeal to the Tax Appeal Board under the same procedure provided for appeal of tax assessments in this Chapter, or; (2) When reversed by a court of competent jurisdiction. SOURCE: GC § 19521. § 26118. Examination of Books and Witnesses. (a) For the purposes of ascertaining the correctnes s of any return, making a return where none has been made, d

mpetent jurisdiction. SOURCE: GC § 19521. § 26118. Examination of Books and Witnesses. (a) For the purposes of ascertaining the correctnes s of any return, making a return where none has been made, d etermining the liability of any person for any tax under Artic les 3 and 4 of this Chapter, or the liability of any transferee or fidu ciary of any person in respect of any tax under Articles 3 and 4 of this Chapter, or collecting any such liability, the Tax Commissio ner, or his representative, is authorized: (1) To examine any books, papers, records, tax retu rns, or other data, merchandise or other property, which may be relevant or material to such inquiry; COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 26 (2) To summon the person liable for the tax, or req uired to perform the act, or any officer or employee of s uch person, or any person having possession, custody, or care o f books of account containing entries relating to the busin ess of the person liable for the tax or required to perform th e act, or any other person the Tax Commissioner or his representa tive may deem proper, to appear before the Tax Commissioner or his representative at a time and

for the tax or required to perform th e act, or any other person the Tax Commissioner or his representa tive may deem proper, to appear before the Tax Commissioner or his representative at a time and place named in the sum mons and to produce such books, papers, records, tax returns , or other data, and to give such testimony, under oath, as ma y be relevant or material to such inquiry; and (3) To take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry. (b) Service of summons. A summons issued under § 26118(a)(2) shall be served by the Tax Commissioner or his representative by an attested copy delivered to the person to whom it is directed, or left at his dwelling or place of business, with any responsible person, and the certificate of service signed by the person serving the summons shall be evidence of the facts it states on the hearing of an application for the enforcemen t of the summons. When the summons requires the production o f books, papers, records, tax returns, or data, it shall be sufficient if such books, papers, records, or other data are described with reasonable certainty. (c) (1) Jurisdiction of Superior Court.

o f books, papers, records, tax returns, or data, it shall be sufficient if such books, papers, records, or other data are described with reasonable certainty. (c) (1) Jurisdiction of Superior Court. If any per son is summoned under § 26118(a)(2) to appear, to testify, or to produce books, papers, records, tax returns, or other data, the Superior Court of Guam shall have jurisdi ction by appropriate process to compel such attendance, testimony, or production of books, papers, records, tax returns, or other data. (2) Enforcement. Whenever any person summoned under § 26118(a)(2) neglects or refuses to obey suc h summons, or to produce books, papers, records, tax returns, or other data, or to give testimony as req uired, the Tax Commissioner may apply to a judge of the Superior Court of Guam for an attachment against hi m as for a contempt. It shall be the duty of the judg e to hear COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 27 the application, and if satisfactory proof is made, to issue an attachment, directed to some proper office r, for the arrest of such person, and upon his being broug ht before him to proceed to a hearing of the case; and upon such

ctory proof is made, to issue an attachment, directed to some proper office r, for the arrest of such person, and upon his being broug ht before him to proceed to a hearing of the case; and upon such hearing the judge shall have the power to make such order as he shall deem proper to enforce obedi ence to the requirements of the summons and to punish su ch person for his default or obedience. (3) Criminal Penalty. Any person who, being summon ed to appear to testify or to appear and produce books , papers, records, tax returns, or other data as requ ired under § 26118(a)(2), neglects to appear or to produ ce such books, papers, records, tax returns, or other data, shall be guilty of a misdemeanor and upon convictio n thereof shall be punished as provided in § 26114. SOURCE: GC § 19522. § 26119. Exchange of Tax Information. Notwithstanding any other provision of law, the Tax Commissioner may make available to the properly aut horized tax officials of any state, of the Federal government, or of any other territory or possession of the United States, infor mation contained in tax reports or returns or any audit thereof or t he report of any investigation made with respect thereto,

ent, or of any other territory or possession of the United States, infor mation contained in tax reports or returns or any audit thereof or t he report of any investigation made with respect thereto, filed or m ade pursuant to the applicable tax laws, provided such state, the F ederal Government or other territory or possession grants a like privilege to Guam. (a) Notwithstanding any other provisions of law, th e Governor of Guam, may enter into reciprocal pacts a nd agreements and exercise the authority and perform t he duties necessary to comply therewith, with any state, the Federal government, or other territory or possession of the United States if deemed necessary or desirable to effectua te the exchange of information in connection with any matt er relative to taxes in which the contracting parties may be interested. (b) Information may be made available or furnished pursuant to this Section only if it is to be used s olely for the COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 28 administration of the tax laws of the state, Federa l Government, or other territory or possession of the United States and only if such above-mentioned tax jurisdi ction

USINESS PRIVILEGE TAX LAW 28 administration of the tax laws of the state, Federa l Government, or other territory or possession of the United States and only if such above-mentioned tax jurisdi ction by law prohibits the unauthorized divulging of such in formation and imposes penalties for the violation of such pro hibition. (c) Any person who divulges, except as authorized i n this Section, or when testifying in any judicial or administrative proceeding at which Guam or any of i ts officials, bodies or commissions, as such, are a pa rt, any information acquired by him or another under the pr ovisions of this Section shall be guilty of a misdemeanor. SOURCE: GC §19526. Subsection (c) amended by P.L. 13-187: 34. § 26120. Inspection of Tax Returns and Information: Prohibition. Tax returns and other information required to be fi led or furnished by the taxpayer, or any other person, sha ll not be open for public inspection or divulged except when testi fying in any judicial or administrative proceeding in which the government of Guam, or any of its officials in an official capaci ty, are a party, and in which the government of Guam has an interest in the result; except, that any

strative proceeding in which the government of Guam, or any of its officials in an official capaci ty, are a party, and in which the government of Guam has an interest in the result; except, that any committee of I Liheslatura (the Legislature), duly created, authorized by resolution of the Legislatur e, may require that it be furnished any data contained in any tax return for use by such committee in executive session only. Nothing i n this Section shall limit the ability of the Public Auditor in th e administration of his or her duties to access tax returns and othe r information required to be filed or furnished by the taxpayer, unless such information is specifically privileged by the Inter nal Revenue Code of the United States. Any information provided to the Public Auditor or any person employed by the Public Audito r under this Section shall be considered 'privileged' pursuant t o § 1909.1 of Chapter 19, Title 1, GCA. Disclosure of a privilege d communication or privileged information in violatio n of this Section shall be a felony of the third degree. SOURCE: GC § 19532. Amended by P.L. 33-052 (June 13, 2015) . ---------- COL6/6/202211 GCA FINANCE & TAXATION CH.

leged information in violatio n of this Section shall be a felony of the third degree. SOURCE: GC § 19532. Amended by P.L. 33-052 (June 13, 2015) . ---------- COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 29 ARTICLE 2 BUSINESS PRIVILEGE TAXES NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), eff ective July 17, 2007, all references to Gross Receipts Tax (GRT) have been amended to Business Privilege Tax (BPT). § 26201. Levy. § 26202. Rates. § 26202.1. Exemption to Increase in BPT. § 26203. Exemptions. § 26203.2. Limited Exemption for Certain Small Busi nesses. § 26203.3. Temporary Limited Exemption for Certain Small Businesses. [Repealed] § 26204. General Provisions. § 26205. Statute of Limitations for Collections. § 26206. Penalty for Non-Filing of Business Privile ge Tax Return. § 26207. Liability of Officers, Directors and Emplo yees for Corporate Business Privilege Taxes. § 26208. Creation of the Guam Memorial Hospital Aut hority Pharmaceuticals Fund. § 26208.1. Appropriation to the Guam Memorial Hospi tal Authority Pharmaceuticals Fund. § 26208.2. Application of Guam Memorial Hospital Au thority Pharmaceuticals Fund. § 26208.3.

rmaceuticals Fund. § 26208.1. Appropriation to the Guam Memorial Hospi tal Authority Pharmaceuticals Fund. § 26208.2. Application of Guam Memorial Hospital Au thority Pharmaceuticals Fund. § 26208.3. Guam Memorial Hospital Authority Medicai d Matching Fund. § 26209. Appropriation of School Operations Fund. § 26210. Creation of Performance Incentive Fund. § 26211. Appropriation of Performance Incentive Fun d. § 26212. Capital Improvement Fund. § 26213. Appropriation of Capital Improvement Fund. § 26214. Immediate Construction of New Schools. § 26215. Business Privilege Tax Credit for Services Purchased from Competing Telecommunications Companies. § 26216. Health Care Service Provider. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 30 § 26201. Levy. There is hereby levied and shall be assessed and co llected monthly privilege taxes against the persons on acco unt of their businesses operating within and without Guam measur ed by the application of rates against values, gross proceeds of sales or gross income, as the case may be. SOURCE: GC § 19540. Amended by P.L. 27-041:2. Subsections (b), (c) and (d) repealed by P.L. 29-002:VII:1(b) (May 18, 2 007).

ainst values, gross proceeds of sales or gross income, as the case may be. SOURCE: GC § 19540. Amended by P.L. 27-041:2. Subsections (b), (c) and (d) repealed by P.L. 29-002:VII:1(b) (May 18, 2 007). Subsection (a) remains as the paragraph above. Amended by P.L. 30 -230:2 (Dec. 30, 2010), effective, 60 days from date of enactment, p ursuant to P.L. 30- 230:5. NOTE: Apportionment of Gross Receipts Tax, see Asiatic Trans-Pacific, Inc. v. Maddox (1967), 371 F.2d. 132. § 26202. Rates. The following rates shall apply in computing, assessing and collecting the business privilege tax: (a) Tax on the Business of Selling Tangible Persona l Property. Upon every person engaging or continuing within Guam in the business of selling any tangible proper ty whatsoever (not including however, bonds or other e vidence of indebtedness or stocks), there shall be a tax equivalent to five percent (5%) of gross proceeds of sales; excep t that on the gross proceeds of the operation of poker machin es, there shall be a tax equivalent to eight percent (8%) on the g ross proceeds of each machine, as determined by subtract ing the winnings, pay-outs and malfunction refunds from tot al receipts of each

there shall be a tax equivalent to eight percent (8%) on the g ross proceeds of each machine, as determined by subtract ing the winnings, pay-outs and malfunction refunds from tot al receipts of each machine. (1) Provided, that gross proceeds of export sales of tangible property in foreign commerce shall not constitute a part of the measure of the tax imposed . Although not constituting a part of the measure of the tax imposed, all such sales shall be reported in the manner provided for the reporting of the tax impose d by § 26202(a). (2) Provided, that any person engaging or continuing in business as a retailer and a wholesal er shall pay the tax required solely on the gross proceeds COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 31 of sales of the retail business, and his books must be kept so as to show separately the gross proceeds of sale of each business. (3) Provided, that a manufacturer or producer engaging in the business of selling his manufacture d products at retail in Guam shall be required to make returns of the gross proceeds of such retail sales and pay the tax imposed by this Chapter for the privilege o f engaging in the business of selling

oducts at retail in Guam shall be required to make returns of the gross proceeds of such retail sales and pay the tax imposed by this Chapter for the privilege o f engaging in the business of selling such products a t retail in Guam; and (4) Provided, that a manufacturer or producer, other than a manufacturer of alcoholic beverages, engaging in the business of selling his products to manufacturers, wholesalers, or licensed retailers, or persons actually selling the products to the United States Government, shall not be required to pay the tax imposed in this Act for the privilege of selling su ch products at wholesale. Nor shall any such manufacturer or producer, other than a manufacturer of alcoholic beverages, be required to pay the tax imposed in th is Act for the privilege of selling products for delivery to the purchaser outside of Guam. The point of delivery fo r a purchaser outside of Guam may be on Guam, if the product’s ultimate destination or consumption is ou tside of Guam. (b) (1) [Repealed.] (2) [Repealed.] (3) Tax upon boxing. The tax levied and assessed under Subsections (b)(1) and (b)(2) (repealed) of t his Section shall not apply to boxing for which a tax

of Guam. (b) (1) [Repealed.] (2) [Repealed.] (3) Tax upon boxing. The tax levied and assessed under Subsections (b)(1) and (b)(2) (repealed) of t his Section shall not apply to boxing for which a tax equivalent to twelve percent (12%) of the gross inc ome of such boxing business is hereby levied and assess ed. (c) Tax on service business. Upon every person engaging or continuing within Guam, in any service business or calling not otherwise specifically taxed under t his Section, [there shall be] a tax equivalent to five percent (5%) of the gross income of such business. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 32 (d) Professions. Upon every person engaging or continuing within Guam in the practice of a profess ion, excluding those expounding the religious doctrines of any church, [there shall be] a tax equivalent to five percent (5%) of the gross income of such practice. (e) Tax on Contractors. There shall be levied, assessed and collected a tax rate of five percent (5%) measu red against the gross income of any contractor; provided, that there shall be deducted from the gross income of the taxpayer s o much thereof as has been included in the gross

five percent (5%) measu red against the gross income of any contractor; provided, that there shall be deducted from the gross income of the taxpayer s o much thereof as has been included in the gross income ea rned from another taxpayer who is a contractor as defined in § 26101(b) and who has already paid the tax levied under this Subsection for goods and services that include the deductible gross income of the taxpayer who is a contractor; provide d, that any person claiming a deduction under this Subsecti on shall be required to show in the person’s return either t he name and the contractor’s license number issued by the Guam Contractors License Board, or the Guam business lic ense number, or the registration number for a profession al engineer, architect or land surveyor, or the Certif icate of Authorization (COA) number for a business authorize d to provide engineering, architecture or land surveying services by the Guam Board of Registration for Professional Engineers, Architects, and Land Surveyors of the pe rson paying the tax on the amount deducted by the person . (f) Tax on banks, banking institutions, small lende rs and building and loan associations.

gineers, Architects, and Land Surveyors of the pe rson paying the tax on the amount deducted by the person . (f) Tax on banks, banking institutions, small lende rs and building and loan associations. Upon every pers on engaging or continuing within Guam in the business of operating any bank, banking institutions, building and loan association, small lending business, or lending ins titutions, there shall be a tax equivalent to five percent (5%) of the ne t income received from business. (1) Net Income. For the purpose of this Section, net income shall mean the gross income of such taxpayer received from all sources less the followi ng deductions therefrom: (A) Salaries or bonuses paid and other compensation from personal services. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 33 (B) Interest or discount paid. (C) Rents paid. (D) Ordinary operating expenses such as supplies, utility services, insurance premiums othe r than for life insurance, provided that any deductib le insurance expense shall be allowable only to the extent that such a premium is applicable to the tax period against which it is claimed.

othe r than for life insurance, provided that any deductib le insurance expense shall be allowable only to the extent that such a premium is applicable to the tax period against which it is claimed. (E) Loans or obligations charged off the books of the bank as losses unless charged against reserves then in existence. (F) Losses other than loan losses, such as those occasioned by fire or other casualty, theft, embezzlement, and the like, but only to the extent not covered by insurance proceeds collected. (G) Transfers from earnings to reserve for bad debts or other contingencies provided for. (H) Miscellaneous direct expenses such as legal, advertising, auditing, and the like. (I) Loss on property sold and depreciation on property owned. (2) A person liable for the payment of taxes levied under this Section shall be required to file an annual return and shall not be required to file monthly returns. The tax year shall be calendar year except that the taxpayer may use his annual accounting period when prior permission is obtained from the Tax Commissioner. The annual return under this Subsecti on shall be filed not later than ninety (90) days following the close of the taxpayer’s

nting period when prior permission is obtained from the Tax Commissioner. The annual return under this Subsecti on shall be filed not later than ninety (90) days following the close of the taxpayer’s tax year. (g) Dealing in foreign currency. Upon every person engaging or continuing within Guam in the business of purchasing and selling foreign money, there shall be a tax equivalent to five percent (5%) of the gross profit of such business represented by the difference between the cost and COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 34 selling price of the foreign currency measured in U nited States dollars. (h) Tax on other business. Upon every person engaging or continuing within Guam in any business, trade, activity, occupation or calling not specifically in cluded in any other provision of this Article, there shall likewise be a tax equivalent to five percent (5%) of the gross in come of such business. This Section shall apply to the gross income of persons taxable under other provisions of this C hapter but which gross income is not derived from the exercise or privilege taxable thereunder. (i) Insurers.

ction shall apply to the gross income of persons taxable under other provisions of this C hapter but which gross income is not derived from the exercise or privilege taxable thereunder. (i) Insurers. Upon every person engaged or continuing within Guam in the business of an insure r, there shall be a tax at the rate of five percent (5%) of gross income received as premium for the writing of insurance, l ess returned premiums and less all commissions attribut able to the sale and purchase of an insurance policy or pol icies of the insurer paid by said insurer to agents of the same, and five percent (5%) of any other gross income earned or de rived on Guam. (j) Tour Agencies. (1) Upon every person engaging or continuing within Guam in the business of a tour agency or tra vel agency, where tourism-related services are furnishe d to consumers by independent vendors through arrangements made by a travel agency, or tour packa ger, and the gross income is divided between the provide r of the services on the one hand and the travel agency or tour packager on the other hand, a tax equivalent t o five percent (5%) shall be imposed on each person with respect to such person’s respective

the services on the one hand and the travel agency or tour packager on the other hand, a tax equivalent t o five percent (5%) shall be imposed on each person with respect to such person’s respective portion of the proceeds, and no more. (2) Where transient accommodations are furnished through arrangements made by a travel agency or tou r packager, the gross income is divided between the provider of the transient accommodations on the one hand and the travel agency, or tour packager, on th e COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 35 other hand, a tax equivalent to five percent (5%) shall be imposed on each person with respect to such pers on’s respective portion of the proceeds, and no more. (A) As used in this Subsection, tourism- related services shall mean dinner cruises, transportation included in a tour package, sightseeing tours, dinner shows, extravaganzas, cultural and educational facilities, and other services rendered directly to the customer or tourist. (B) As used in this Subsection ‘transient accommodations’ shall mean hotel, lodging facility, or similar facility located on Guam and subject to the provisions of 11 GCA § 30101.

customer or tourist. (B) As used in this Subsection ‘transient accommodations’ shall mean hotel, lodging facility, or similar facility located on Guam and subject to the provisions of 11 GCA § 30101. SOURCE: GC § 19541. Subsection (a) amended by P.L. 18-033: 34; (a)(1) amended by P.L. 17-050; (a)(2) by P.L. 18-002:7; Su bsection (a)(4) amended by P.L. 17-034:6 (Nov. 25, 1983) and P.L. 1 7-067:8 (Sept. 7, 1984); Subsection (e) amended by P.L. 11-156; repea led/reenacted by P.L. 26-149:1 (eff. 9/27/2002); amended by P.L. 28-106:2 (April 14, 2006) (eff. Sept. 24, 2002). First paragraph of subsection (f) amended by P.L. 27- 005:V:6:c. Subsection (j) added by P.L. 25-117. Sub section (i) amended by P.L. 24-253:2. Amended by P.L. 29-002:VI:28 (Ma y 18, 2007), so that reference to Gross Receipts Tax was amended to Busi ness Privilege Tax. Subsection (e) amended by P.L. 30-230:3 (Dec. 30, 2 010), effective, 60 days from date of enactment, pursuant to P.L. 30-23 0:5; and by P.L. 33- 194:3 (Dec. 15, 2016). Amended by P.L. 34-087:13 (M ar. 16, 2018). 2019 NOTE: P.L. 34-116:2 (Aug. 24, 2018) provided for the foll owing uncodified tax rate: Notwithstanding any other provision of law, rule, o r

15, 2016). Amended by P.L. 34-087:13 (M ar. 16, 2018). 2019 NOTE: P.L. 34-116:2 (Aug. 24, 2018) provided for the foll owing uncodified tax rate: Notwithstanding any other provision of law, rule, o r regulation, beginning on October 1, 2018, the business privileg e tax rate shall be five percent (5%). 2018 NOTE: Subitem designations added in subsection (j) pursu ant to 1 GCA § 1606. 2017 NOTE: Reference to 'territory' removed pursuant to 1 GCA § 420. In subsection (d), the bracketed language 'There sh all be' was added to subsection (d) by the editor of the 1970 edition of the Government Code. NOTE: [2003] P.L. 27-005:V:6 (a) and (b) stated with re spect to this entire section: Section 6. Increase in Gross Receipts Tax Rates. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 36 (a) Notwithstanding any other provision of law, the four percent (4%) gross receipts tax rate contained in 1 1 GCA § 26202 (a),(c),(d),(e),(f),(g),(h), (i), and (j) sha ll be amended to six percent (6%), effective April 1, 2003. This Se ction shall cease to be effective after September 30, 2005, at which time the rate shall revert to four percent (4%).

, and (j) sha ll be amended to six percent (6%), effective April 1, 2003. This Se ction shall cease to be effective after September 30, 2005, at which time the rate shall revert to four percent (4%). (b) Not less than six (6) months prior to September 30, 2005, I Maga’lahen Guåhan [the Governor] shall subm it a plan to I Liheslaturan Guåhan [the Legislature] on the d eletion of the Gross Receipts or Business Privilege Tax, and t he implementation of a sales tax or other tax. NOTE: P.L. 09-124, effective August 26, 1967, contained the following pertinent language: 'Notwithstanding the provisions of P.L. 9-060, Nint h Guam Legislature, the increase in the rates of the Gross Receipt Tax, as set forth in said law, shall not apply to the proceeds of any transaction entered into prior to the effective date of said public law incl uding any transaction resulting from a public bid opened prior to the eff ective date of said public law, the rates of tax which were in effect prior to said public law to be applied to the proceeds of any such transaction, pr ovided that this Act shall be of no force and effect eighteen (18) months afte r the effective date of its approval and upon its

d public law to be applied to the proceeds of any such transaction, pr ovided that this Act shall be of no force and effect eighteen (18) months afte r the effective date of its approval and upon its expiration Public Law 9-0 60 shall govern the taxation of the proceeds of any transaction regardl ess of when said transaction was entered into. The Commissioner of R evenue and Taxation is authorized to issue such regulations as are nece ssary to effectuate the purpose of this Act, which the Legislature hereby d eclares to be that of equitably treating taxpayers who entered into trans actions prior to the increase in gross receipt tax.' P.L. 17-050 contained the following language: 'The amendment made to Subsection .0101 of Section 19541 [§ 26202( a)(1)] of Section 2 of this Act shall be effective as of January 25, 19 84.' § 26202.1. Exemption to Increase in BPT. (a) The increase in the Business Privilege Tax (BPT ) set forth in Subsections 26202(a), (c), (d), (e), (f), (g), ( h), (i), and (j) of this Chapter effective April 1, 2003, shall not apply to income generated from the following contracts: Contracts entered into or awarded prior to February 28, 2003, which were based upon

and (j) of this Chapter effective April 1, 2003, shall not apply to income generated from the following contracts: Contracts entered into or awarded prior to February 28, 2003, which were based upon bid awards made prior t o February 28, 2003, that cannot be amended or renego tiated to accommodate the increase in BPT; and Contracts entered into or awarded after February 28 , COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 37 2003, which were based upon bids or proposals submi tted prior to February 28, 2003, that cannot be amended or renegotiated to accommodate the increase in BPT. (b) For purposes of this Section, each taxpayer cla iming an exemption under this Section shall provide to the D epartment of Revenue & Taxation a copy of its bid contract or aw ard under which any claimed exempt income was generated and s hall segregate in their tax filings, relative to the Bus iness Privilege Tax, said exempt income from any other income gener ated by the taxpayer. SOURCE: Added by P.L. 27-023:3. Amended by P.L. 29-002:V I:28 (May 18, 2007), so that reference to Gross Receipts Tax was amended to Business Privilege Tax. § 26203. Exemptions.

ated by the taxpayer. SOURCE: Added by P.L. 27-023:3. Amended by P.L. 29-002:V I:28 (May 18, 2007), so that reference to Gross Receipts Tax was amended to Business Privilege Tax. § 26203. Exemptions. The provisions of this Article, and the taxes levie d thereunder, shall not apply to the following person s: (a) The government of Guam, except as authorized in § 60114.1(a) of Article 1 of Chapter 60, Title 21, Gu am Code Annotated; the government of the United States; the government of any foreign sovereignty; and any agen cy or instrumentality of any of the foregoing governments in regard to any activity or function engaged in. (1) Notwithstanding this Subsection (a), taxes sha ll not be levied against any autonomous agency, public corporation, and other public instrumentalities of the government of Guam with existing leases where a tax levy may affect the revenue neutrality of that autonomous agency, public corporation, and other public instrumentalities of the government of Guam to the potential detriment of existing bond ratings. (b) Fraternal benefit societies, orders or associat ions, operating under the lodge system, or for the exclus ive benefit of the members of the

am to the potential detriment of existing bond ratings. (b) Fraternal benefit societies, orders or associat ions, operating under the lodge system, or for the exclus ive benefit of the members of the fraternity itself which provi de for the payment of death, sick, accident or other benefits to the members of such fraternity and their dependents. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 38 (c) Corporations, associations or societies organiz ed and operated exclusively for religious, charitable, sci entific or educational purposes, or the preservation of the cu lture historically indigenous to Guam. (d) Business leagues, chambers of commerce, boards of trade, civic leagues, public schools, and organizat ions operated exclusively for the benefit of the communi ty and for the promotion of social welfare, provided that no p rofit accrues to the benefit of the private stockholder o r individual. (e) Hospitals, infirmaries and sanitariums. (f) Totally blind, with respect to the first Three Thousand Dollars ($3,000.00) of gross income for ea ch tax year. (g) Agricultural producers and fisheries.

) Hospitals, infirmaries and sanitariums. (f) Totally blind, with respect to the first Three Thousand Dollars ($3,000.00) of gross income for ea ch tax year. (g) Agricultural producers and fisheries. (h) Manufacturers, producers or importers, who shal l have paid the taxes levied by Articles 3 or 6 of th is Chapter on the manufacture, production or importation of al coholic beverages, and tobacco; provided that any such taxp ayer claiming exemption under this Section may claim it only to the extent of the gross proceeds of sales accruing to him from the sale to a wholesaler or retailer of the product taxes under such other sections; provided further, that a perso n claiming exemption under this Section shall keep accounts of such sales separately and support them by sales receipts for each separate transaction which is taxable under Article s 3 or 6 of this Chapter. (i) Any person doing business as home industry and holding a business license issued pursuant to § 721 57 of 11 GCA. (j) The exemption of § 26203(b), (c), (d) and (e), shall apply only to the gross income of any person includ ed in any such subsection received: (1) from the regular activities of such person, or (2)

(j) The exemption of § 26203(b), (c), (d) and (e), shall apply only to the gross income of any person includ ed in any such subsection received: (1) from the regular activities of such person, or (2) from a lottery authorized under 9 GCA, Chapter 64, or COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 39 (3) from a carnival, fiesta, dance, athletic performance, or other similar entertainment, sponso red by such person, the profits of which are to be used exclusively for, or in furtherance of, the regular activities of such person, and shall not accrue in whole or in part to the benefit of any private stockholde r or individual. Such exemptions shall be allowed only u pon application to the Tax Commissioner in accordance w ith § 26117. The within Subsection (j) shall not be construed to exempt from the taxes levied by this A rticle any person having a concession or contract from an exempt person for the furnishing or sale of any tan gible property, or the furnishing of any service, from wh ich gross income accrues to such person. (k) The provisions of this Article and the taxes le vied hereunder, shall not apply to the following gross i ncome or gross proceeds

g of any service, from wh ich gross income accrues to such person. (k) The provisions of this Article and the taxes le vied hereunder, shall not apply to the following gross i ncome or gross proceeds of sale: (1) Amounts received under life insurance policies and contracts paid by reason of the death of the in sured. (2) Amounts received (other than amounts paid by reasons of death of the insured) under life insuran ce, endowment or annuity, or upon surrender of the contract. (3) Amounts received by any persons under any accident insurance or health insurance policy or contract, or under worker’s compensation acts or employer’s liability acts, as compensation for pers onal injuries, death or sickness, including also the amo unt of any damages or other compensation received, whether as a result of action or by private agreement betwe en the parties on account of such personal injuries, death or sickness. (4) The value of all property of every kind and sor t acquired by any person by gift, bequest or devise, and the value of all property acquired by any person by descent or inheritance. COL6/6/202211 GCA FINANCE & TAXATION CH.

rty of every kind and sor t acquired by any person by gift, bequest or devise, and the value of all property acquired by any person by descent or inheritance. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 40 (5) Amounts received by any person as compensatory damages for any tort injury to him, or to his character or reputation, or received by any per son as compensatory damages for any tort injury to or destruction of property, whether as the result of a ction or by private agreement between the parties; provid ed, however, that amounts received by any person as punitive damages for tort injury or breach of contr act injury shall be included in gross income. (6) Amounts received as salaries or wages for services, rendered by an employee to an employer. (7) Amounts received as alimony and other similar payments and settlements. (8) Amounts received by a distributor from the sale of liquid fuel when the tax levied by Article 4 of this Chapter has been paid thereon by the distributor. A distributor for purposes of this Section excludes a ll retailing activities of any business entity.

d fuel when the tax levied by Article 4 of this Chapter has been paid thereon by the distributor. A distributor for purposes of this Section excludes a ll retailing activities of any business entity. This exemption shall not apply to the sale by a retailer or a retailing subdivision of a distributor of any liqui d fuel on which a tax is levied under Article 4 of this Ch apter. (9) The first Forty Thousand Dollars ($40,000) earned or received per taxable year by any person a s rental income from real property whose gross annual rental income from real property is less than Fifty Thousand Dollars ($50,000) during the most recent t ax year. The exemption shall apply annually, commencin g at the first day of the month of the new tax year, based on the gross annual rental income of a person durin g the most recent year, and shall end on the last day of the last month of the same tax year. (10) All of the gross proceeds received by contractors for the construction of residential bui ldings developed, owned, and operated by non-profit corporations or associations, which construction is pursuant to a program approved by the Secretary of COL6/6/202211 GCA FINANCE & TAXATION CH.

bui ldings developed, owned, and operated by non-profit corporations or associations, which construction is pursuant to a program approved by the Secretary of COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 41 Housing and Urban Development pursuant to § 221 (d)(3) of the Housing Act, as amended. (11) The amounts collected by persons required to collect taxes imposed under Chapter 30. (12) All the gross proceeds received by those persons selling goods, arts or crafts in the Guam a nd Micronesian Cultural Village established by 12 GCA § 9302 for a period of ten (10) years commencing on t he date that any business privilege tax would otherwis e be required to be paid to the government of Guam. (13) Amounts received from the sales of liquid fuel to the United States of America, to the government of Guam or for commercial aviation purposes. (14) Amounts received from the sale of residual fuel for marine purposes. As used in this Subsectio n, residual fuel means that liquid which is the heavie st grade petroleum product used in marine oil-burning boilers. It consists of the residue of certain crud e oils after the lighter fractions such as benzine, kerose ne, gas-

iquid which is the heavie st grade petroleum product used in marine oil-burning boilers. It consists of the residue of certain crud e oils after the lighter fractions such as benzine, kerose ne, gas- oils and lubricating oils have been removed by distillation. (15) Amounts received from the sales of personal property to the government of Guam. (16) Amounts received as contributions or received from fund raising activities by political candidate s, committees, parties, corporations, associations, organizations or funds and which are expended for political campaign purposes and reported to the Ele ction Commission pursuant to the laws of Guam. (17) (A) Amounts received from the sale or resale of products processed or manufactured at the Guam Rehabilitation Workshop Center by registered clients of the Center, or certified as disabled wor ker products, and products processed and manufactured independently by registered clients COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 42 of the Center where fifty percent (50%) of the valu e of the product is added by the client.

ependently by registered clients COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 42 of the Center where fifty percent (50%) of the valu e of the product is added by the client. (B) The Director of the Department of Vocational Rehabilitation shall certify that such products were processed or manufactured at the Guam Rehabilitation Workshop Center by registered clients of the Center, or certified as disabled worker products, or else processed and manufactured independently by registered clients of the Center where fifty percent (50%) of the valu e of the product is added by the client. (18) Export Trading companies as defined by § 26101(d) of this Title and goods and services expor ted by them. (19) All of the foreign trade income of a FSC, as defined in 12 GCA § 60101 (b). (20) All of the investment income of a FSC as defined in 12 GCA § 60101(f) and carrying charges a s defined in 12 GCA § 60101(g). (21) Amounts received from the sale of liquid fuel to vessels engaged in commercial fishing. (22) Amounts received from engaging or continuing in business as a wholesaler, except that if such persons are, in addition, engaging or continui ng in business as a

ls engaged in commercial fishing. (22) Amounts received from engaging or continuing in business as a wholesaler, except that if such persons are, in addition, engaging or continui ng in business as a retailer, the provisions of this Subc hapter and the taxes levied thereunder shall apply to that part of the businesses of such persons that involve reta il. (A) Amounts received from engaging or continuing in business as a wholesaler shall includ e the sales of tangible personal property to contractors. (23) The amount of winnings, payouts or malfunction refunds reported pursuant to § 26110(g) of this Title. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 43 (24) Amounts paid by the contractor out of the contract gross proceeds to individual clients or to the rehabilitation center or workshop pursuant to the provisions of 17 GCA § 41106. (25) Amounts received by a participant in the Guam-Micronesia Island Fair from sales of goods or services at the Fair. (26) Amounts received from the sale of betelnut (pugua), pepper tree leaf (pupulu), and lime (afok) for use with pugua.

in the Guam-Micronesia Island Fair from sales of goods or services at the Fair. (26) Amounts received from the sale of betelnut (pugua), pepper tree leaf (pupulu), and lime (afok) for use with pugua. (27) All of the gross income of a Foreign Sales Corporation (FSC) from sources without Guam, as determined under 12 GCA § 60102(c). (28) The first Forty Thousand Dollars ($40,000) earned or received per taxable year by any person a s income from retailing whose gross annual retail inc ome is less than Fifty Thousand Dollars ($50,000) durin g the most recent tax year. The exemption shall apply annually, commencing at the first day of the month of the new tax year, subject to the gross annual retai l income of a person during the most recent year, and shall end on the last day of the last month of the same tax year. (A) Fifty percent (50%) of the amounts received from the retail sale of local produce, as defined in this Subdivision. (B) Local produce as used in this Subdivision shall mean the following: locally produced crops, including, but not limited to, plants and plant products collectively grown or cared for and used for food and other useful purposes; locally raised livestock,

the following: locally produced crops, including, but not limited to, plants and plant products collectively grown or cared for and used for food and other useful purposes; locally raised livestock, including but not limited to, cattle, carabao, swine, sheep, goats, equine and poultry raised for food or other purposes; and locally caught fish to include any aquatic animal life, including, but not limited to, oysters, clams, mollusks, mussels, crustaceans and other shellfish COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 44 (29) The first Forty Thousand Dollars ($40,000) earned or received per taxable year by any person a s income service, which includes, but is not limited to, legal; medical; dental; accounting; consulting and engineering fees; commissions on real estate sales or property management; fees charged by barbershops, beauty parlors, shoe shining parlors, dry cleaning and laundry establishments; and automobile, appliance, electronics and computer repair shops, whose gross annual service income is less than Fifty Thousand Dollars ($50,000.00) during the most recent tax yea r.

establishments; and automobile, appliance, electronics and computer repair shops, whose gross annual service income is less than Fifty Thousand Dollars ($50,000.00) during the most recent tax yea r. This exemption shall apply annually, commencing at the first day of the month of the new tax year, subject to the gross annual service income of the person during th e most recent tax year, and shall end on the last day of the month of the same tax year. (30) The first Forty Thousand Dollars ($40,000) earned or received per taxable year by person as re ntal income whose gross annual rental income is less tha n Fifty Thousand Dollars ($50,000.00) during the most recent tax year. This exemption shall apply annuall y, commencing at the first day of the month of the new tax year, based on the gross annual rental income of a person during the most recent year, and shall end o n the last day of the last month of the same tax year. (31) The first Forty Thousand Dollars ($40,000.00) earned or received per taxable year by a person, partnership or corporation as commission income who se gross annual commission income is less than Fifty Thousand Dollars ($50,000.00) during the most recen t tax

ceived per taxable year by a person, partnership or corporation as commission income who se gross annual commission income is less than Fifty Thousand Dollars ($50,000.00) during the most recen t tax year. This exemption shall apply annually, commencing at the first day of the month of the new tax year, subject to the gross annual income of the per son during the most recent tax year, and shall end on t he last day of the month of the same tax year. (32) The first Forty Thousand Dollars ($40,000) earned or received per taxable year by a licensed insurance company as insurance premium income COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 45 whose gross annual insurance premium income is less than Fifty Thousand Dollars ($50,000.00) during the most recent tax year. This exemption shall apply annually, commencing at the first day of the month of the new tax year, subject to the gross annual incom e of the person during the most recent tax year, and sha ll end on the last day of the month of the same tax year. (33) Any amounts received by businesses participating in the Performance of BOS Activities, defined in 12 GCA § 58128.7, as a BOS Contractor, o r

nd on the last day of the month of the same tax year. (33) Any amounts received by businesses participating in the Performance of BOS Activities, defined in 12 GCA § 58128.7, as a BOS Contractor, o r Subcontractors of the BOS Contractor, provided that such business is a ‘Guam-based Contractor or Guam- based Subcontractor’ for purposes of 12 GCA § 58128.7. (34) [Repealed.] (35) Amounts received from the sale of telecommunication services including telephony, internet, data transmission line, wired/wireless/ca ble television and satellite service, two-way radios, p aging and wired and wireless data communications and rela ted services to customers outside of Guam. (36) All the gross proceeds received by child care facilities and group care homes which are duly lice nsed pursuant to Article 4 – Child Welfare Services Act, of Chapter 2, Division 1 of Title 10, Guam Code Annotated, commencing on the date that any business privilege tax would otherwise be required to be pai d to the government of Guam. This Item shall continue to be effective beyond its initial expiration date of November 17, 2016.

te that any business privilege tax would otherwise be required to be pai d to the government of Guam. This Item shall continue to be effective beyond its initial expiration date of November 17, 2016. (37) Official Vehicle Inspection Safety (OVIS) fees collected by safety inspection stations on beh alf of the government of Guam under 16 GCA § 3602(b)(1). (38) Amounts received from the sale of medical equipment, machines, and appliances, including beds , examination or treatment chairs, or telemedicine technology for use in hospitals or clinics. Clinics , for COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 46 purposes of this Subsection, include those operated by healthcare professionals, licensed under the provis ions of 10 GCA Chapter 12, who accept Medicare, Medicaid , and Medically Indigent Program (MIP) patient covera ge when applicable. (39) Amounts received from homeowner association membership dues and common area fees. (l) The amounts collected on behalf of the governme nt as tipping fees imposed under Chapter 51 of Title 1 0 of the Guam Code Annotated. (m) A Subcontractor as defined pursuant to § 26101(b)(1). SOURCE: GC § 19543.

collected on behalf of the governme nt as tipping fees imposed under Chapter 51 of Title 1 0 of the Guam Code Annotated. (m) A Subcontractor as defined pursuant to § 26101(b)(1). SOURCE: GC § 19543. Subsection (c) amended by P.L. 16-088; subsection (i) added by P.L. 15-071; subsection (j) (2) amended by P.L. 13- 187; subsection (k)(8) repealed and reenacted by P. L. 13-131; subsection (k)(10) renumbered by P.L. 11-156. Subsection (k)(1 1) added by P.L. 10- 166; (k)(12) added by P.L. 13-171; (k)(13) added by P.L. 16-026; (k)(14) added by P.L. 16-101; (k)(15) added by P.L. 16-124; (k)(16) added by P.L. 17-049; (k)(17) added by P.L. 17-050; (k)(18) added by P.L. 17-067; (k)(19) by P.L. 17-063:6; (k)(20) by P.L. 17-075:23 ; (k)(21) by P.L. 18- 002:4; (k)(23) added by P.L. 18-007:10; (k)(24) add ed by P.L. 18-032:2; (k)(25) added by P.L. 19-007:4; (k)(26) added by P. L. 21-003:2; (k)(27) added by P.L. 22-055:1(e) (12/2/93). Subsection (k) (9) amended by P.L. 24-012:6. Subsection (k)(28) added by P.L. 24-012:7 ); (k)(29) added by P.L. 24-012:8; (k)(30) added by P.L. 24-012:9. Subs ection (k)(28)(i) and (ii) added by P.L. 24-156:2. Subsection (k)(29) ame nded by P.L. 24-226:4 (Aug.

8) added by P.L. 24-012:7 ); (k)(29) added by P.L. 24-012:8; (k)(30) added by P.L. 24-012:9. Subs ection (k)(28)(i) and (ii) added by P.L. 24-156:2. Subsection (k)(29) ame nded by P.L. 24-226:4 (Aug. 3, 1998). Subsections (k)(31) and (32) added by P.L. 24-226:2 and :3 (Aug. 3, 1998). Subsection (k)(22) amended by P. L. 26-149:2 eff. 9/27/2002. Subsection (l) added by P.L. 25-093:11. Subsections (k) (33) and (34) added by P.L. 24-295:17 and :18 (Oct. 21, 1998). Subsection (k)(34) amended by P.L. 27-103:4; repealed by P.L. 32-109:1 (Feb. 10, 2014). Subsection (k)(36) added by P.L. 28-144:3 ( Aug. 4, 2006). Subsections (k)(9) and (k)(28-32) amended by P.L. 2 9-002:V:I:106 (May 18, 2007). Subsection (k)(37) added by P.L. 31-127: 2 (Nov. 14, 2011), amended by P.L. 33-217:2 (Dec. 15, 2016). Subsecti on (a) amended by P.L. 32-022:3 (May 3, 2013). Subsection (a)(1) adde d by P.L. 32-022:3 (May 3, 2013). Subsection (m) added by P.L. 33-194: 4 (Dec. 15, 2016). Subsection (k) added by P.L. 34-138:3 (Dec. 12, 201 8). Subitem (k)(38) added by P.L. 36-045:2 (Aug. 16, 2021). Subitem (k) (39) added by P.L. 36-097:2 (May 13, 2022). 2015 NOTE: Pursuant to P.L.

6). Subsection (k) added by P.L. 34-138:3 (Dec. 12, 201 8). Subitem (k)(38) added by P.L. 36-045:2 (Aug. 16, 2021). Subitem (k) (39) added by P.L. 36-097:2 (May 13, 2022). 2015 NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), ref erences to Gross Receipts Tax were altered to Business Priv ilege Tax. Pursuant to P.L. 16-001, 'Workman’s' altered to Worker’s Compen sation. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 47 Pursuant to the authority granted by 1 GCA § 1606, the reference to the Government Code section in subsections (i) and (k)( 12) were altered to reflect the codification of these sections in the G CA; and the numbers and/or letters were altered in subsections (k)(22) and (28), and subsection (k)(32-37) were renumbered to subsection (k)(33-36) to adhere to the Compiler’s alpha-numeric scheme. Prior publications of the GCA also included the fol lowing notes from the Compiler. P.L. 11-156 declared the legislative intent that th e provisions of the Act 'shall not apply to gross receipts from contrac ts executed on or before the effective date of this Act, and contract ors or subcontractors having executed such contracts shall be entitled to the

Act 'shall not apply to gross receipts from contrac ts executed on or before the effective date of this Act, and contract ors or subcontractors having executed such contracts shall be entitled to the exemptions allowed under [§ 26203(k)(10)] and [§ 26 202(e)] of 11 GCA prior to the effective date of this Act.' With respect to this Section, P.L. 27-005:V:7 (Feb. 28, 2003) states: Section 7. Reduction of Gross Receipt Tax Exemptions. Notwithstanding any other provision of law, the Fifty Thousand Dollars ($50,000.00) exemptions contained in items (9), (28), (29), (30) , (31), and (32) of 11 GCA § 26203(k) are reduced to Thirty-Five Thousand Dollars ($35,000.00) effective April 1, 2003. In addition, the Five Hundred Thous and Dollars ($500,000.00) recent tax year caps containe d in the same items are decreased to Three Hundred Thousand Dollars ($300,000.00) effective April 1, 2 003. This Section shall cease to be effective after September 30, 2005, at which time the original Fift y Thousand ($50,000.00) and Five Hundred Thousand ($500,000.00) amounts are restored. Public Law 29-002:V:I:106 (May 18, 2007) reduced th e $50,000 exemption to $40,000 and the $500,000 gross income limit to

nd ($50,000.00) and Five Hundred Thousand ($500,000.00) amounts are restored. Public Law 29-002:V:I:106 (May 18, 2007) reduced th e $50,000 exemption to $40,000 and the $500,000 gross income limit to $50,000 in subsections (k)(9) and (k)(28-3 2), effective May 1, 2007. § 26203.1. Exemption Limitation. The aggregate amount of exemption allowed under Ite ms (9), (28), (29) and (30) of Subsection 26203(k) of this Chapter for the taxable year shall not exceed Fifty Thousand Dollar s ($50,000.00). SOURCE: Added by P.L. 24-59:IV:6. § 26203.2. Limited Exemption for Certain Small Businesses. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 48 Notwithstanding any other provision of law, the tax es levied under this Article in excess of those generated fro m three percent (3%) of the gross proceeds of business privilege ta x referenced in § 26202 shall not apply to the first Five Hundred T housand Dollars ($500,000) earned or received per taxable y ear by any person from real property rentals, rental others, p rofession, retailing, service income, commission income, licen sed insurance premium, and/or farming, whose gross annual income is in excess of Fifty Thousand

real property rentals, rental others, p rofession, retailing, service income, commission income, licen sed insurance premium, and/or farming, whose gross annual income is in excess of Fifty Thousand Dollars ($50,000) but not more th an Five Hundred Thousand Dollars ($500,000) during the most recent tax year; provided, however, that such person(s) shall be fully subject to three percent (3%) of the gross proceeds of busi ness privilege tax referenced in § 26202, subject to the existing requirements and exemptions referenced elsewhere in this Article. Th e exemption set forth in this Section shall apply annually, com mencing on the first day of the month of the new tax year, based o n the gross annual income of a person during the most recent ye ar, and shall end on the last day of the last month of the same t ax year. SOURCE: Added by P.L. 35-013:1 (May 7, 2019). Amended by P.L. 36- 027:1 (June 11, 2021), effective retroactively to J anuary 1, 2020. Amended by P.L. 36-081:1 (Mar. 10, 2022), effective retroac tively to January 1, 2022. 2022 NOTE: P.L. 36-081:3 (Mar. 10, 2022) stated: 'This Act sh all be effective on July 1, 2022.

anuary 1, 2020. Amended by P.L. 36-081:1 (Mar. 10, 2022), effective retroac tively to January 1, 2022. 2022 NOTE: P.L. 36-081:3 (Mar. 10, 2022) stated: 'This Act sh all be effective on July 1, 2022. This Act shall apply re troactive to January 1, 2022.' 2021 NOTE: Pursuant to P.L. 36-027:1 (June 11, 2021), the amen dment was effective upon enactment and applied retroactiv ely to January 1, 2020. § 26203.3. Temporary Limited Exemption for Certain Small Businesses. [Repealed.] SOURCE: Added by P.L. 35-090:2 (June 26, 2020), effective retroactively to Jan. 1, 2020. Repealed by P.L. 36- 027:2 (June 11, 2021), effective retroactively to January 1, 2020. 2020 NOTE: Pursuant to P.L. 35-090:3 (June 26, 2020), this p rovision shall expire two years from the date of enactment. § 26204. General Provisions. The provisions of this Section are restricted in ap plication to this Article but are in addition to the general pro visions of Article COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 49 1 and the rules and regulations promulgated under l aw by the Tax Commissioner. (a) Computing value.

l pro visions of Article COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 49 1 and the rules and regulations promulgated under l aw by the Tax Commissioner. (a) Computing value. Where delivery of any produce is made by a person to affiliated persons, or under ot her circumstances where the relation between the partie s is such that the consideration paid, if any, is not indicat ive of the true value of the products delivered, the tax imposed by this Act shall be measured by the value of said products rat her than by the gross income or the gross proceeds of sale a ccruing therefrom. (b) Tax in Addition to Other Taxes. Taxes levied by this Article shall be in addition to any other taxes or licenses imposed by the laws of Guam or the United States, e xcept as specifically provided otherwise, and shall be a con dition precedent to engaging in any business, trade or cal ling taxable hereunder. SOURCE: GC § 19544. § 26205. Statute of Limitations for Collections. The statute of limitations for collections of unpai d taxes due on business privilege tax returns shall be ten year s after the tax is assessed.

9544. § 26205. Statute of Limitations for Collections. The statute of limitations for collections of unpai d taxes due on business privilege tax returns shall be ten year s after the tax is assessed. For amendment, correction, adjustment, ch allenge, determination of correctness of the amount of taxes paid, or audit of income reported and the correctness of the amoun t of tax liability shown on the business privilege tax retur ns, the statute of limitations shall be three years after filing and p ayment of taxes due. There shall be no statute of limitations on un filed business privilege tax returns or on the collection of taxes on revenues not shown or reported on Business Privilege Tax Returns . SOURCE: Added by P.L. 19-010:20; amended by P.L. 19-013:9. Amended by P.L. 32-050:3 (July 5, 2013). 2015 NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), ref erences to Gross Receipts Tax were altered to Business Priv ilege Tax. Amended by P.L. 29-002:VI:28 (May 18, 2007), so that refere nce to Gross Receipts Tax was amended to Business Privilege Tax. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 50 § 26206.

by P.L. 29-002:VI:28 (May 18, 2007), so that refere nce to Gross Receipts Tax was amended to Business Privilege Tax. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 50 § 26206. Penalty for Non-filing of Business Privile ge Tax Return . An annual business privilege tax return shall be fi led on or before April 15 of each year for the previous calen dar year by every Guam corporation or foreign corporation autho rized to do business on Guam which has not filed a monthly or o ther tax return for or during the said previous calendar yea r, even for corporations without any income for said year. If a corporation fails to file such a return when required, the Dire ctor of Revenue and Taxation shall, after a hearing pursuant to the Administrative Adjudication Law, suspend the certificate and licen se, if any, of the corporation until all required tax returns are filed, and payment arrangements are made for any unpaid tax liability and penalties. In addition, there shall be imposed a penalty again st said corporation by the Director of Revenue and Taxation of One Hundred Dollars ($100.00) plus One Hundred Dollars ($100.00), per month or part thereof that the filing

l be imposed a penalty again st said corporation by the Director of Revenue and Taxation of One Hundred Dollars ($100.00) plus One Hundred Dollars ($100.00), per month or part thereof that the filing of the bu siness privilege tax return is delinquent. If a Taxpayer omits from Business Privilege an amou nt includible therein which is in excess of twenty-fiv e percent (25%) of the amount of business privilege stated in the r eturn, the tax may be assessed, or a proceeding in court for the c ollection of such tax be begun without assessment, at any time within six (6) years after the return was filed. SOURCE: Added by P.L. 19-010:21; amended by P.L. 19-013:9. Repealed/reenacted by P.L. 24-059:IV:7. 2015 NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), ref erences to Gross Receipts Tax altered to Business Privilege Tax. § 26207. Liability of Officers, Directors and Emplo yees for Corporate Business Privilege Taxes. In the case of a corporation, the officers, directo rs, and employees thereof, the liability of such directors, officers and employees of the corporation for unpaid business pr ivilege taxes payable by the corporation shall be the same as the liability for directors,

s thereof, the liability of such directors, officers and employees of the corporation for unpaid business pr ivilege taxes payable by the corporation shall be the same as the liability for directors, officers, and employees of a corporation for unpaid U. S. wage withholding tax, as indicated in the Intern al Revenue Code of the United States. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 51 SOURCE: Added by P.L. 19-010:24; amended by P.L. 19-013:11 . 2015 NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), ref erences to Gross Receipts Tax altered to Business Privilege Tax. § 26208. Creation of the Guam Memorial Hospital Aut hority Pharmaceuticals Fund. There is hereby created, separate and apart from ot her funds of the government of Guam, a fund known as the 'Gua m Memorial Hospital Authority Pharmaceuticals Fund.' This Fund shall not be commingled with the General Fund and shall be kept in a separate bank account of which GMHA will be au thorized to withdraw from the funds. Six and nineteen hundredth s percent (6.19%) of all Business Privilege Taxes collected i n Guam shall be deposited in the Guam Memorial Hospital Authorit y Pharmaceuticals Fund and

aw from the funds. Six and nineteen hundredth s percent (6.19%) of all Business Privilege Taxes collected i n Guam shall be deposited in the Guam Memorial Hospital Authorit y Pharmaceuticals Fund and shall be appropriated by I Liheslaturan Guåhan to fund all pharmaceutical, drug, medical supplies, medical equipment, blood and blood products, and me dicine requirements for the Guam Memorial Hospital. The D epartment of Administration shall deposit, on the last day of each month, a sum equal to six and nineteen hundredths percent (6 .19%) of all Business Privilege Taxes collected for that month i n the Guam Memorial Hospital Authority Pharmaceuticals Fund. T he Department of Administration shall be required to first and foremost fund the Guam Memorial Hospital Authority Pharmaceuticals Fund prior to distribution to any o ther source in accordance with the provisions of this requirement. The Guam Memorial Hospital Authority Pharmaceutical Fund wil l not be subject to I Maga’låhen Guåhan’s transfer authority or any method of withholding of appropriations that may be imposed by the Bureau of Budget and Management Research (BBMR) . SOURCE: Added by P.L. 24-017:1. Amended by P.L.

Guåhan’s transfer authority or any method of withholding of appropriations that may be imposed by the Bureau of Budget and Management Research (BBMR) . SOURCE: Added by P.L. 24-017:1. Amended by P.L. 24-034:9; P.L. 25- 003; P.L. 25-071:9; P.L. 27-019:5. Repealed and ree nacted by P.L. 28- 068:II:III:22 (Sept. 30, 2005). Amended by P.L. 28- 150:II:IV:1 (Sept. 30, 2006); P.L. 29-002:VI:28 (May 18, 2007); P.L. 30-19 6:III:I:2 (Sept. 1, 2010); and P.L. 33-066:XII:30 (Sept. 5, 2015. 2015 NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), ref erences to Gross Receipts Tax were altered to Business Priv ilege Tax. Prior publications of the GCA included the followin g note from the Compiler: COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 52 The repeal of P.L. 27-19 by P.L. 29-002:VI:31 (May 18, 2007) did not affect this section, because it had already bee n repealed and reenacted by P.L. 28-068. CROSS-REFERENCE: See P.L. 32-072 (Nov. 27, 2013) (stating the legislative findings and intent ' that any tax and other revenue collected by the government of Guam, that is directly attributab le to the operation of a new hospital and any other new medical facilities, must

findings and intent ' that any tax and other revenue collected by the government of Guam, that is directly attributab le to the operation of a new hospital and any other new medical facilities, must be reserved and appropriated to GMHA.') § 26208.1. Appropriation to the Guam Memorial Hospital Authority Pharmaceuticals Fund. The contents of the Guam Memorial Hospital Authorit y Pharmaceuticals Fund are appropriated to the Guam M emorial Hospital Authority. This appropriation is continuo us, contingent on the annual submission of a detailed budget no la ter than January 30 to I Liheslaturan Guåhan . The Director of Administration shall transfer, on the first day of each month, all funds contained in the Guam Memorial Hospital Autho rity Subsidy Fund to the Guam Memorial Hospital Authorit y. Nothing herein shall prohibit I Liheslaturan Guåhan from appropriating any other supplemental amounts to the Guam Memorial Hospital Authority. SOURCE: Added by P.L. 28-068:II:III:22 (Sept. 30, 2005). § 26208.2. Application of Guam Memorial Hospital Au thority Pharmaceuticals Fund. For the purpose of recognizing appropriated Pharmac eutical funds as operating revenue by the Guam Memorial Hos

005). § 26208.2. Application of Guam Memorial Hospital Au thority Pharmaceuticals Fund. For the purpose of recognizing appropriated Pharmac eutical funds as operating revenue by the Guam Memorial Hos pital Authority, retroactively and prospectively, the Hos pital shall apply seventy five percent (75%) of the funds recei ved towards the payment of bills for services incurred by quali fied Medicaid recipients involved in the program at the Hospital and to billings for services provided to patients classified as 'ch arity care' pursuant to criteria adopted by resolution to the B oard of Trustees. Said 75% shall be deposited into the GMHA Medicaid Matching Fund. SOURCE: Added by P.L. 29-132:1 (Jan. 8, 2009). Amended by P.L. 30- 196:III:I:3 (Sept. 1, 2010) and P.L. 32-068:XII:17 (Sept. 11, 2013). § 26208.3 GMHA Medicaid Matching Fund. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 53 There is hereby created, separate and apart from ot her funds of the government of Guam, a fund known as the GMHA Medicaid Matching Fund (hereinafter the Fund). The Fund shall be kept in a separate bank account, administered by the Department of Public Health and Social Services.

f Guam, a fund known as the GMHA Medicaid Matching Fund (hereinafter the Fund). The Fund shall be kept in a separate bank account, administered by the Department of Public Health and Social Services. Th e Fund shall not be subject to any transfer authority of I Maga’låhen Guåhan or any interfund transfers. The sole authorized exp enditure of the Fund is for the payments of bills for services as a uthorized by § 26208.2. All payments from the Fund for services in curred by qualified Medicaid recipients provided at the Hospi tal shall include the federal matching funds of the Medicaid program. The BBMR shall allot twenty-five percent (25%) of t he annual appropriation from the GMHA Pharmaceuticals Fund each quarter of the fiscal year to the Guam Memorial Hos pital Authority. Thirty (30) days after the end of each f iscal quarter, all unexpended or unencumbered allotments remaining in the Fund shall no longer be available as Medicaid matching f unds and shall be immediately remitted to the GMHA. SOURCE: Added by P.L. 32-068:XII:18 (Sept. 11, 2013). § 26209. Appropriation of School Operations Fund. [Repealed.] SOURCE: Added by P.L. 24-017:2. Amended by P.L. 24-034:10. Repealed by P.L.

e GMHA. SOURCE: Added by P.L. 32-068:XII:18 (Sept. 11, 2013). § 26209. Appropriation of School Operations Fund. [Repealed.] SOURCE: Added by P.L. 24-017:2. Amended by P.L. 24-034:10. Repealed by P.L. 25-003:IV:11. § 26210. Creation of Performance Incentive Fund. [Repealed.] SOURCE: Added by P.L. 24-142:5. Amended by P.L. 24-299:21. Repealed by P.L. 26-026:4. § 26211. Appropriation of Performance Incentive Fun d. [Repealed.] SOURCE: Added by P.L. 24-142:6. Amended by P.L. 24-299:22. Repealed by P.L. 26-026:5. § 26212. Capital Improvement Fund. [Repealed.] SOURCE: Added by P.L. 24-299:48. Repealed by P.L. 26-026:6 . COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 54 § 26213. Appropriation of Capital Improvement Fund. [Repealed.] SOURCE: Added by P.L. 24-299:49. Repealed by P.L. 26:026-7 . § 26214. Immediate Construction of New Schools. [Repealed.] SOURCE: Added by P.L. 24-299:50. Repealed by P.L. 26-026:8 . § 26215. Business Privilege Tax Credit for Services Purchased from Competing Telecommunications Companies. Any telecommunications company that purchases servi ces from a telecommunications competitor, parent, subsi diary, or sister company of a

rvices Purchased from Competing Telecommunications Companies. Any telecommunications company that purchases servi ces from a telecommunications competitor, parent, subsi diary, or sister company of a telecommunications competitor m ay claim an exemption against its business privilege tax liabil ity as a result of the purchase of such services, The amount of the cr edit shall be equal to the Business Privilege taxes paid by the s elling telecommunications company on the purchase price of the services when the services purchased are resold or used to provide other services sold to consumers. SOURCE: Added by P.L. 28-144:2 (Aug. 4, 2006). 2015 NOTE: Pursuant to P.L. 29-002:VI:28 (May 18, 2007), ref erences to Gross Receipts Tax were altered to Business Priv ilege Tax. § 26216. Health Care Service Provider. (a) Offset Against Business Privilege Taxes for Pas t Due Medically Indigent Program Billings. (1) If the Medically Indigent Program (MIP) fails to pay a claim for services and products for more than nin ety (90) days after receiving an invoice, the health care pr ovider, unless he has a qualifying certificate, that provid ed said services or products shall be entitled to an offset

for more than nin ety (90) days after receiving an invoice, the health care pr ovider, unless he has a qualifying certificate, that provid ed said services or products shall be entitled to an offset equal to the value of unpaid for MIP services it provides agains t the Business Privilege Taxes it owes for any given mont h. The value of said services and products shall be the MI P rates for the provider’s claims that are approved by the MIP. (2) Any unused offset authorized by this Section a gainst Business Privilege Taxes owed for any given month m ay be COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 55 carried over into subsequent months until said offs et is exhausted. (3) The government shall not pay health care provi ders for services if an offset against total Business Pr ivilege Taxes has been exercised. (4) Any health care service provider that claims a n offset against Business Privilege Taxes pursuant hereto mu st 'participate' and continuously provide services to MIP recipients to qualify for said offsets for any give n month. The term 'participate' in this subsection means that te n percent (10%) of the patients or clients serviced by the pr

vide services to MIP recipients to qualify for said offsets for any give n month. The term 'participate' in this subsection means that te n percent (10%) of the patients or clients serviced by the pr ovider in a given month must be recipients of the Medically Ind igent Program. (5) 'Health Care Service Provider', in this subsec tion means a properly licensed business that provides me dical equipment or supplies; pharmaceutical health care s ervices and products; medical health care services; dental health care services; behavioral health care services; and alli ed health care services, including a clinic, hospital, specia lized health care facility, licensed practitioner, hospital or h ealth care providers to recipients of the Medically Indigent P rogram. (6) Assignment of offsets. A healthcare service pro vider may assign any offsets authorized by subitem (a)(1) , supra. (b) Reimbursements. The Director of Administration shall reduce the amount of a provider’s MIP payables by t he amount of Business Privilege Taxes offset it exercises. Tax offsets exercised by a provider shall constitute final payment of MIP obligations.

l reduce the amount of a provider’s MIP payables by t he amount of Business Privilege Taxes offset it exercises. Tax offsets exercised by a provider shall constitute final payment of MIP obligations. The appropriations for MIP for a fiscal year shall be automatically reduced by the amount of any tax offsets taken in t hat year. (c) Coordination. To avoid double payment to providers, the Director of Revenue and Taxation shall immediately notify the Director of Administration and the appropriate depa rtment or agency when a health care service provider claims a n offset pursuant to this section. (d) Administrative Rules and Regulations. The Direc tor of Revenue and Taxation shall, pursuant to the Adminis trative COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 56 Adjudication Law, enact rules and regulations to im plement this Section within ninety (90) days after enactment her eof. SOURCE: Added by P.L. 29-019:VI:23 (Sept. 29, 2007). Subs ection (a)(6) added by P.L. 31-077:XII:27 (Sept. 20, 2011) . ---------- ARTICLE 3 ALCOHOLIC BEVERAGE TAX § 26301. Definitions. § 26302. Excise Tax on Alcoholic Beverages. § 26303.

pt. 29, 2007). Subs ection (a)(6) added by P.L. 31-077:XII:27 (Sept. 20, 2011) . ---------- ARTICLE 3 ALCOHOLIC BEVERAGE TAX § 26301. Definitions. § 26302. Excise Tax on Alcoholic Beverages. § 26303. Presumption of Sale of Alcoholic Beverages in Guam: Contrary Proof. § 26304. Alcoholic Beverages to Which Excise Tax no t Applicable. § 26305. General Provisions. § 26306. Construction. § 26307. Sale of Alcoholic Beverages to Instrumenta lities of Armed Forces: Credit for Excise Tax Paid. § 26301. Definitions. For the purpose of this Article, the following defi nition of words and phrases used herein shall govern the inte rpretation: (a) Alcoholic beverage. Alcoholic beverage means be er, distilled spirits or wine and every liquid or solid which contains one-half (1/2) of one percent (1%) or more of alcohol by volume and which is fit for beverage pur poses either alone or when combined with other substances . (b) Distilled beverage. Distilled beverage means ag gie, alcohol, brandy, or whiskey and ever product of dis tillation of any fermented liquid which is fit for beverage p urposes. (c) Malted fermented beverage.

ed beverage. Distilled beverage means ag gie, alcohol, brandy, or whiskey and ever product of dis tillation of any fermented liquid which is fit for beverage p urposes. (c) Malted fermented beverage. Malted fermented beverage shall mean any beverage for human consumpt ion manufactured from malt, wholly or in part, or from any substitute thereof, by any of the processes of ferm entation. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 57 (d) Manufacturer. Manufacturer means any person who produces alcoholic beverages in any manner. (e) Rectifier. Rectifier means every person who col ors, flavors, or otherwise processes alcoholic beverages by distillation, blending, percolating or other proces ses. (f) Sale. Sale includes any transaction whereby, fo r any consideration, title to alcoholic beverages is tran sferred from one person to another and includes the delivery of alcoholic beverages pursuant to an order placed for the purch ase of such beverages, and soliciting or receiving an orde r for such beverages, but does not include the return of alcoh olic beverages by a licensee to the licensee from whom s uch beverages were purchased. (g) Vinous beverage.

iciting or receiving an orde r for such beverages, but does not include the return of alcoh olic beverages by a licensee to the licensee from whom s uch beverages were purchased. (g) Vinous beverage. Vinous beverage shall mean beverage for human consumption consisting of the pr oduct of the normal alcoholic fermentation of the juice o f any fruit or any natural produce having the nature of, or res embling wine. (h) Wholesaler. Wholesaler means any consignee of alcoholic beverages brought into Guam from without Guam, when the alcoholic beverages are for delivery or us e within Guam; any person to whom delivery is first made in Guam of alcoholic beverages brought into Guam from witho ut Guam for delivery or use within Guam; any person se lling alcoholic beverages to nonlicensees within an area over which the United States Government exercises jurisd iction, when delivery of the alcoholic beverages is made to the nonlicensees by a common carrier transporting the a lcoholic beverages from a point outside Guam; any person bri nging alcoholic beverages into Guam from without Guam whi ch are not consigned to any person and which are for d elivery or use within Guam. SOURCE: GC § 19563.

m a point outside Guam; any person bri nging alcoholic beverages into Guam from without Guam whi ch are not consigned to any person and which are for d elivery or use within Guam. SOURCE: GC § 19563. 2017 NOTE: References to 'Territory' altered to 'Guam' pursuan t to 1 GCA § 420. § 26302. Excise Tax on Alcoholic Beverages. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 58 An excise tax is imposed upon all alcoholic beverag es (except alcoholic beverages manufactured in Guam) s old in Guam by manufacturer, manufacturer’s agents, rectifiers or wholesalers or sellers of alcoholic beverages selling alcoholic beverages with respect to which no tax has been paid within areas of which the Federal government exercises jurisdiction at the fo llowing rates: (a) Malted Fermented Beverage. A tax in the amount of Seven Cents ($0.07) per each twelve (12) fluid o unces or fraction thereof on all malted fermented beverages to be applied to the measure of the container in which it is offered for sale. (b) Distilled Beverages. A tax in the amount of Eighteen Dollars ($18.00) per gallon on all distill ed beverages to be applied to the measure of the conta iner in which it is

it is offered for sale. (b) Distilled Beverages. A tax in the amount of Eighteen Dollars ($18.00) per gallon on all distill ed beverages to be applied to the measure of the conta iner in which it is offered for sale; provided further that any fraction of One Cent ($0.01) shall be taken as a whole cent. (c) Vinous Beverages. A tax at the rate of Four Dol lars and Ninety-Five Cents ($4.95) per wine gallon on al l vinous beverages to be applied to the measure of the conta iner in which it is offered for sale; provided, however, th at the tax levied by this Section shall be prorated in units o f measure less than one (1) gallon; and provided further, tha t any fraction of One Cent ($0.01) shall be taken as a wh ole cent. (d) [Repealed.] (e) Proceeds of Excise Tax on Alcoholic Beverages. All proceeds from taxes collected under this Sectio n shall be deposited in the 'Healthy Futures Fund' created pur suant to 11 GCA § 26603(d). SOURCE: GC § 19560, amended by P.L. 10-115 and by P.L. 17- 004. Amended by P.L. 27-005:V:1. Subsection (d) amended by P.L. 27- 029:VI:16. Subsection (d) repealed by P.L. 28-068:I V:27 (Sept. 30, 2005). Subsection (e) repealed and reenacted by P.L.

y P.L. 17- 004. Amended by P.L. 27-005:V:1. Subsection (d) amended by P.L. 27- 029:VI:16. Subsection (d) repealed by P.L. 28-068:I V:27 (Sept. 30, 2005). Subsection (e) repealed and reenacted by P.L. 28-06 8:IV:26 (Sept. 30, 2005). § 26303. Presumption of Sale of Alcoholic Beverages in Guam: Contrary Proof. It shall be presumed that all alcoholic beverages a cquired by any taxpayer have been sold in Guam by him and that alcoholic COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 59 beverages transported or imported into Guam are tra nsported or imported for delivery and use in Guam unless one of the following is established, in reports on such forms as may be prescribed by the Tax Commissioner: (a) That the alcoholic beverages are still in posse ssion of the licensee. (b) That the alcoholic beverages have been sold or delivered to another licensed alcoholic beverages manufacturer, rectifier, importer, or wholesaler. (c) That the alcoholic beverages have been exported without Guam or sold for export by the licensee mak ing the report and actually exported from Guam within ninet y (90) days from the date of the sale or delivered on boar d a ship or vessel for

orted without Guam or sold for export by the licensee mak ing the report and actually exported from Guam within ninet y (90) days from the date of the sale or delivered on boar d a ship or vessel for store use or ship’s consumption, or sold to special licensees authorized under § 3226 of 11 GCA to sell alcoholic beverages to departing passengers at the airport or Commercial Port. (d) That prior to the termination of possession the alcoholic beverages have been lost through unintent ional destruction. (e) That prior to the termination of possession the re has been an unaccounted for loss, but the unaccounted l oss shall not exceed a tolerance to be fixed by the Tax Commi ssioner. (f) That the alcoholic beverages are otherwise exem pt from taxation under this Article. SOURCE: GC § 19561, amended by P.L. 12-214; Subsection (c) amended by P.L. 14-059. NOTE: Pursuant to the authority granted by 1 GCA § 1606 , the reference to the Government Code section subsection (e) was a ltered to reflect the codification of this section in the GCA. § 26304. Alcoholic Beverages to Which Excise Tax no t Applicable.

06 , the reference to the Government Code section subsection (e) was a ltered to reflect the codification of this section in the GCA. § 26304. Alcoholic Beverages to Which Excise Tax no t Applicable. The tax is not imposed upon any alcoholic beverage s specifically mentioned in Subsections (a) to (f), i nclusive, of § 26303, nor to any alcoholic beverage manufactured i n Guam. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 60 SOURCE: GC § 19562, as amended by P.L. 10-115. § 26305. General Provisions. The preceding general provisions are restricted in application to this Article, and are in addition to the general provisions of Article 1 and by rules and regulations promulgated under authority of law by the Tax Commissioner. SOURCE: GC § 19564. § 26306. Construction. The provisions of this Article, insofar as they are substantially the same as existing provisions of la w relating to the same subject matter, shall be construed as restatem ents and continuations and not as new enactments. SOURCE: GC § 19565. § 26307. Sale of Alcoholic Beverages to Instrumenta lities of Armed Forces: Credit for Excise Tax Paid.

be construed as restatem ents and continuations and not as new enactments. SOURCE: GC § 19565. § 26307. Sale of Alcoholic Beverages to Instrumenta lities of Armed Forces: Credit for Excise Tax Paid. No tax is imposed upon the sale of alcoholic bevera ges to the following listed instrumentalities of the Armed For ces of the United States organized under Army, Air Force or Na vy regulations: (a) Army, Air Force, Coast Guard and Navy exchanges ; and (b) Officers, 'non-commissioned officers' and enlis ted men’s club or messes. If any person has paid the tax on alcoholic beverag es thereafter delivered to or used by an instrumentali ty of the Armed Forces so located, the taxpayer may claim and shall be allowed credit with respect to the tax so paid in any retur n filed or assessment paid under this Subchapter. SOURCE: GC § 19567, as amended by P.L. 14-079. ---------- COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 61 ARTICLE 4 LIQUID FUEL TAX § 26401. General Provisions. § 26402. Levy. § 26403. Rates. § 26404. Exemption from Levy Under § 26402 and Spec ial Rule Regarding Drawbacks. § 26405. Regulations, Reports of Transfers, etc. § 26406. Penalty. § 26407.

rovisions. § 26402. Levy. § 26403. Rates. § 26404. Exemption from Levy Under § 26402 and Spec ial Rule Regarding Drawbacks. § 26405. Regulations, Reports of Transfers, etc. § 26406. Penalty. § 26407. Liquid Fuel Monitoring Unit. § 26408. Special Rule Regarding Drawbacks. § 26401. General Provisions. The following general provisions are restricted in application to this Article, and are in addition to the general provisions of Article 1 and the rules and regulations promulgated under authority of law by the Tax Commissioner. (a) Definitions. When used in this Article the foll owing definitions of words and phrases used herein shall govern the interpretations: (1) Distributors shall mean and include any person who refines, manufactures, produces, blends or compounds liquid fuel in Guam, or who imports liqui d fuel into Guam, or who receives in Guam liquid fuel with respect to which the liquid fuel tax is not al ready imposed hereunder, or who receives liquid fuel in G uam in bulk form from a Distributor, as defined in this Subsection and who acquires physical possession of such liquid fuel or rights in such liquid fuel dire ctly from a pipeline, directly from a cargo ship, or via an

om a Distributor, as defined in this Subsection and who acquires physical possession of such liquid fuel or rights in such liquid fuel dire ctly from a pipeline, directly from a cargo ship, or via an i n-tank change or ownership of such liquid fuel occurring i n a petroleum facility, and includes the United States, and any agency or instrumentality thereof, as well as a ny other person, to the extent such inclusion is autho rized by the laws of the United States, and particularly by 4 U.S.C. § 104, as amended. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 62 (2) Consumer shall mean and include any person who purchases liquid fuel for his own use or storag e, but shall not mean a person who purchases for resale, provided such person is properly licensed to engage in the business of selling liquid fuel. Consumer shall also mean and include any distributor who consumes the liquid fuel itself as the end-user. (3) Liquid fuel or fuel shall mean and include all liquids ordinarily, practically and commercially us able in internal combustion, turbo-jet and jet engines f or the generation of power and shall include all distillat es of, and condensates from

all liquids ordinarily, practically and commercially us able in internal combustion, turbo-jet and jet engines f or the generation of power and shall include all distillat es of, and condensates from petroleum, natural gas, coal, coal tar and vegetable ferments, such distillates and condensates being ordinarily designated as gasoline , butane, naphtha, benzol, benzine, kerosene and alco hol so usable, but not restricted to such designation. However, kerosene purchased for actual use other th an internal combustion, turbo-jet, or jet engines and crude oil are specifically excluded from the meaning of l iquid fuel under this Article. Bio-fuels such as bio-dies el, ethanol, and vegetable/microbe ferments; and non- petroleum-based fuels, including hydrogen fuels, ar e specifically excluded from the meaning of liquid fu el under this Article if manufactured on Guam. (4) Diesel fuel shall mean and include all petroleum-based liquids ordinarily, practically and commercially usable in those ignition-compression engines commonly known as diesel engines. (5) (A) Transfer shall mean and include any sale, conveyance, assignment, disposition or change of possession of liquid fuel made or

ose ignition-compression engines commonly known as diesel engines. (5) (A) Transfer shall mean and include any sale, conveyance, assignment, disposition or change of possession of liquid fuel made or effected in Guam by a distributor to Consumer, and shall also mean and include all liquid fuel dedicated or made available by a distributor for retail sales to consumers in Guam by the said distributor or wholesale sales to independent retailers, or use by the distributor as a consumer. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 63 (B) Export Transfer shall mean any export of liquid fuel from a point within Guam to a point outside of Guam. (6) Dedicated or made available (A) shall mean and include the point in time when liquid fuel is delivered by a distributor to a ny facility or device used or to be used by the said distributor to dispense liquid fuel to consumers in the case of a distributor who operates its own reta il activities; or (B) the point in time when liquid fuel is delivered to an independent retailer in the case wherein a distributor transfers liquid fuel to an independent retailer.

rates its own reta il activities; or (B) the point in time when liquid fuel is delivered to an independent retailer in the case wherein a distributor transfers liquid fuel to an independent retailer. (7) Stock gain or loss is any gain or loss in quant ity or volume of liquid fuel resulting from natural phenomena that may give rise to a gain or loss or a ny other gain or loss deemed by the Tax Commissioner t o have resulted from an effect not caused directly or indirectly by such distributor. SOURCE: GC § 19574.Amended by P.L. 24-205:2. Subsection ( a)(3) amended by P.L. 29-150:3 (Jan. 30, 2009). Subsecti on (a)(4) amended by P.L. 29-150:4 (Jan. 30, 2009). 2013 NOTE: Pursuant the authority granted by 1 GCA § 1606, n umbers and/or letters in subsections (a)(5-6) were altered to adhere to the Compiler’s alpha-numeric scheme. § 26402. Levy. There is hereby levied, and shall be assessed and c ollected, upon every distributor, in addition to any other ta xes provided by law, an excise tax to be measured by the applicatio n of the rates set forth in the next succeeding § 26403 against an y transfer in Guam of liquid fuel made by a distributor, except t hat the liquid fuel tax shall not

to be measured by the applicatio n of the rates set forth in the next succeeding § 26403 against an y transfer in Guam of liquid fuel made by a distributor, except t hat the liquid fuel tax shall not be applied more than once with r espect to the same liquid fuel. Provided, however, that the provi sions of this Article shall not apply to liquefied petroleum gas, unless the same is used as fuel for transportation purposes. SOURCE: GC § 19570. Amended by P.L. 24-205:3. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 64 § 26403. Rates. Notwithstanding the requirements of § 16311 of Arti cle 3, Chapter 16, Title 3, Guam Code Annotated, and any o ther provision of law, the following rates shall apply i n computing, assessing, and collecting the liquid fuel tax, effe ctive January 1, 2018: (a) a tax at the rate of Fourteen Cents ($0.14) pe r gallon on diesel fuel; and (b) a tax at the rate of Fifteen Cents ($0.15) per gallon on all other liquid fuel as defined herein except liquid fuel used for commercial aviation purposes which is taxe d at a rate of Eight Cents ($0.08) per gallon. SOURCE: GC § 19571, amended by P.L. 15-074 (Oct. 24, 1979) , P.L. 17- 004 (Apr.

n except liquid fuel used for commercial aviation purposes which is taxe d at a rate of Eight Cents ($0.08) per gallon. SOURCE: GC § 19571, amended by P.L. 15-074 (Oct. 24, 1979) , P.L. 17- 004 (Apr. 7, 1983), and P.L. 34-044:1 (Oct. 12, 201 7). § 26404. Exemption from Levy Under § 26402 and Spec ial Rule Regarding Drawbacks. The following transfers of liquid fuel in Guam made by a distributor shall be exempt from the liquid fuel ta x levied under § 26402: (a) Liquid fuel transferred to vessels engaged in commercial fishing. (b) Liquid fuel transferred to the United States, o r any agency or instrumentality thereof for its use or co nsumption. (c) Liquid fuel transferred for aviation purposes a nd used solely in aircraft under charter to the United States Department of Defense. (d) Transfer of liquid fuel by a distributor to ano ther distributor. (e) Transfer of liquid fuel to the government of Gu am or any of its instrumentalities. (f) Transfer of liquid fuel to a point outside of G uam. (g) Stock losses of less than one half of one perce nt (.5%) (.005) during the fiscal year of the taxpayer .

or any of its instrumentalities. (f) Transfer of liquid fuel to a point outside of G uam. (g) Stock losses of less than one half of one perce nt (.5%) (.005) during the fiscal year of the taxpayer . In computing taxable or non-taxable stock losses, any gross COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 65 stock gains shall be off-set against any gross stoc k losses in determining net stock losses for the purposes of as sessing the tax. SOURCE: GC § 19575.01, amended by P.L. 18-002:5. Codified by the Compiler as 11 GCA § 26406. Subsection (c) added by P.L. 22-043:1 (11/26/93). Renumbered to § 26404 by P.L. 24-205:5. 2015 NOTE: This provision was originally codified from GC § 19 572, entitled 'Drawback.' Repealed by P.L. 24-205:4. § 26405. Regulations, Reports of Transfers, etc. All transfers of liquid fuel in Guam shall be repor ted by the distributor transferring the liquid fuel in such ma nner and at such time as the Tax Commissioner may adopt by regulatio n. The Tax Commissioner may also adopt such other regulations as to be consistent with the statute and as may be necessary to administer and implement this Article 4. SOURCE: Added by P.L. 24-206:7.

n. The Tax Commissioner may also adopt such other regulations as to be consistent with the statute and as may be necessary to administer and implement this Article 4. SOURCE: Added by P.L. 24-206:7. 2015 NOTE: This provision was originally codified from GC § 19 573, entitled 'Claim for Drawback.' Repealed by P.L. 24- 205:6. § 26406. Penalty. In addition to all other penalties provided by law, a penalty of One Thousand Dollars ($1,000.00) shall be assess ed and collected from a distributor who fails to report to the Tax Commissioner a transfer in Guam of liquid fuel unle ss it is shown by the distributor that such failure is due to reas onable cause and not due to willful neglect. The penalty shall apply to each such failure to report a transfer. SOURCE: Added by P.L. 24-205:7. 2015 NOTE: This provision was originally codified from § 19575 .01, entitled 'Exemption.' Amended and recodified to § 2 6404 by P.L. 24- 205:5. § 26407. Liquid Fuel Monitoring Unit. There is hereby created a Liquid Fuel Monitoring Un it within the Examination Branch of the Department of Revenue and Taxation. Such Unit shall be staffed by a Revenue A gent II, one Tax Auditor II, and three Tax Technicians II.

uid Fuel Monitoring Un it within the Examination Branch of the Department of Revenue and Taxation. Such Unit shall be staffed by a Revenue A gent II, one Tax Auditor II, and three Tax Technicians II. These positions shall be in addition to positions already contained withi n the budget of COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 66 the Department of Revenue and Taxation for the Tax Enforcement Division. SOURCE: Added by P.L. 24-205:7. 2015 NOTE: This provision was originally codified from § 19575 .02, entitled 'Exemption for charters.' Repealed by P.L. 24-205:6. § 26408. Special Rule Regarding Drawbacks. The provisions of Article 4, Liquid Fuel Tax, Chapt er 26, Division 2 of Title 11 of the Guam Code Annotated, regarding drawbacks of the liquid fuel tax as in effect prior to the effective date of this Act shall apply to transfers of liquid fuel made prior to such effective date. SOURCE: Added by P.L. 24-205:7. ---------- ARTICLE 5 AUTOMOTIVE SURCHARGES § 26501. Legislative Intent and Use of Revenues. § 26502. Automotive Surcharge. § 26503. Mass Transit Automotive Surcharge. § 26504. Automotive Surcharges. § 26501.

-- ARTICLE 5 AUTOMOTIVE SURCHARGES § 26501. Legislative Intent and Use of Revenues. § 26502. Automotive Surcharge. § 26503. Mass Transit Automotive Surcharge. § 26504. Automotive Surcharges. § 26501. Legislative Intent and Use of Revenues. The Legislature recognizes that the need for more r evenues for educational programs and facilities continue to be demanded by educational policy makers and administrators in order that the instructional requirements of Guam’s students can b e effectively addressed, and also that there is currently an appa rent trend towards a continual decline of gasoline prices at t he retail outlets, thereby creating a more conducive climate for the c hildren of Guam to be benefactors of this economic benefit. The Legislature, in performing its responsibility t o seek ways by which needed financial resources are obtained, j ustifiably pursues the revenue producing scheme in this Sectio n which provides less burden to the tax-paying citizenry th an other often discussed revenue producing means since the current strong COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 67 demand for additional revenues for educational purp oses requires an

scussed revenue producing means since the current strong COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 67 demand for additional revenues for educational purp oses requires an immediate response and infusion of new funds wil l enhance significantly the Government’s ability to finance u rgent educational needs. The intent of the Legislature in enacting Sections 10 and 11 of this Act is to establish an Automotive Surcharge and a Mass Transit Automotive Surcharge, both of which shall b e separate and apart from other surcharges or taxes on liquid fuel. All revenues derived from the Automotive Surcharge and the Mass Transit Automotive Surcharge shall be used for the purposes specified in Section 10 and 11 of this Act, respect ively, and for no other purpose. SOURCE: Added by P.L. 18-033:10(a) and amended by P.L. 18- 049:12. Codified by Compiler. NOTE: 'Sections 10 and 11 of this Act' refer to §§ 26502 and 26503 in this Chapter, also enacted by P.L. 18-033. 2013 NOTE: Subsection designation deleted to adhere to the C ompiler’s general codification scheme in accordance to the au thority granted by 1 GCA § 1606. § 26502. Automotive Surcharge. Levy.

8-033. 2013 NOTE: Subsection designation deleted to adhere to the C ompiler’s general codification scheme in accordance to the au thority granted by 1 GCA § 1606. § 26502. Automotive Surcharge. Levy. Except for liquid fuel used for aviation purposes, there is hereby levied an automotive surcharge of Four Cents ($0.04) per gallon on all liquid fuel taxed pursuant to Subsect ion (b) of § 26403 of this Title. This automotive surcharge shal l be in addition to the liquid fuel tax levied pursuant to Subsectio n (b) of § 26403 of this Title. SOURCE: Added by P.L. 18-033:10(b) (May 9, 1986) as GC § 1 9576. NOTE: Public Law 21-110:5(a) (June 1, 1992) erroneously refers to a repeal of subsections (c), (d) and (e) of § 19576 o f the Government Code. However, the Legislature’s intent was to repeal (c) , (d) and (e) of P.L. 18- 033:10, which earmarked automotive surcharges for c ertain appropriations. § 26503. Mass Transit Automotive Surcharge. (a) Levy. There is hereby levied a Mass Transit Aut omotive Surcharge of Four Cents ($0.04) per gallon on all l iquid fuel taxed pursuant to Subsection (a) of § 26403 of this Titl e. This Mass COL6/6/202211 GCA FINANCE & TAXATION CH.

Mass Transit Aut omotive Surcharge of Four Cents ($0.04) per gallon on all l iquid fuel taxed pursuant to Subsection (a) of § 26403 of this Titl e. This Mass COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 68 Transit Automotive Surcharge shall be in addition t o the liquid fuel tax levied pursuant to Subsection (a) of § 264 03 of this Title. (b) The proceeds of the Mass Transit Automotive Sur charge levied pursuant to Subsection (a) of this Section, as and to the extent released from the pledge of such proceeds pu rsuant to Subsection (d) of § 1504 of Title 5 of the Guam Cod e Annotated, are to be placed in a separate fund hereby created and known as the Public Transit Fund to be administered by the D epartment of Administration. For purposes of such pledge and rel ease, the proceeds of the Mass Transit Automotive Surcharge s hall be deemed to be the last revenues used pursuant to suc h pledge and the first revenues released from such pledge. (c) A portion of the revenues in the Public Transit Fund shall be used for the operation of the mass transit system by the Department of Administration.

the first revenues released from such pledge. (c) A portion of the revenues in the Public Transit Fund shall be used for the operation of the mass transit system by the Department of Administration. (d) The Department of Administration shall report o n a monthly basis to the Legislative Committee which ha s oversight over the Guam Mass Transit Authority on the balance and status of the Public Transit Fund. SOURCE: Added by P.L. 18-033:11 (May 9, 1986) as GC § 1957 7. Repealed/reenacted by P.L. 21-110:5 (June 1, 1992). Subsection (c) amended by P.L. 22-120:1 (Apr. 26, 1994). Subsectio n (d) added by P.L. 22-041:70 (Sept. 29, 1993). Subsection (c) amended by P.L. 26-076:29 (Mar. 12, 2002). § 26504. Automotive Surcharges. The Automotive Surcharges levied pursuant to §§ 265 02 and 26503 of this Title shall not apply to liquid fuel which is exempt from the liquid fuel tax under this Article 4. If a ny Automotive Surcharges is levied pursuant to §§ 26501 and 26503 of this Title regarding liquid fuel taxed pursuant to this Articl e 4, and a drawback of the liquid tax is allowed, there shall be allowed a drawback of such Automotive Surcharges along with t he drawback of the liquid fuel

liquid fuel taxed pursuant to this Articl e 4, and a drawback of the liquid tax is allowed, there shall be allowed a drawback of such Automotive Surcharges along with t he drawback of the liquid fuel tax. SOURCE: Added by P.L. 24-205:8 (May 8, 1998). ---------- COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 69 ARTICLE 6 TOBACCO TAX § 26601. General Provisions. § 26602. Levy. § 26603. Rates. § 26604. Export Drawback. § 26605. Military Sales Drawback. § 26606. Departing Passengers Drawback. § 26607. Spoilage Drawback. § 26608. Spoilage Relief. § 26609. Tobacco Products Regulated and Taxed. § 26601. General Provisions. The following general provisions are restricted in application to this Article, and are in addition to the general provisions of Article 1 and the rules and regulations promulgated under authority of law by the Tax Commissioner. (a) Time of attachment. The tax levied hereunder sh all attach at the time the product enters the economy o f Guam which shall be either: (1) Upon the completion of the process when manufactured or produced in Guam; or (2) At the time the article is discharged from its carrier when brought into Guam; or (3) At the time

shall be either: (1) Upon the completion of the process when manufactured or produced in Guam; or (2) At the time the article is discharged from its carrier when brought into Guam; or (3) At the time of purchase for resale, if the toba cco tax has not hereto attached. (b) Definitions. For the purpose of this Section th e following definitions of words and phrases shall go vern its interpretation: (1) Tobacco products shall mean and include the product or manufacture of any of the genus of plant s commonly prepared for smoking or chewing or use as snuff. (2) Cigarette shall mean and include any preparation of finely cut tobacco rolled and enclos ed so COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 70 that it is held together for smoking. (3) Cigar shall mean and include any shaped roll of tobacco leaves prepared for smoking. (c) Bonding. Any taxpayer holding an Annual Wholesaler License pursuant to Title 11 GCA § 6201 and against whom taxes are levied under this Article wi th respect to tobacco products may, by complying with the rule s and regulations promulgated by the Tax Commissioner, an d by placing such tobacco products in a warehouse under bond, delay

Article wi th respect to tobacco products may, by complying with the rule s and regulations promulgated by the Tax Commissioner, an d by placing such tobacco products in a warehouse under bond, delay the payment of said taxes until the due date of the monthly tax return for the month in which the tobac co products are withdrawn from the warehouse and no in terest shall commence to run thereon until such due date. (1) Relief from tax upon export. When the taxes lev ied under this Article have not been paid with respect to any tobacco products because said tobacco products were placed in a warehouse under bond, the taxpayer may export such tobacco products from Guam without payment of the taxes levied under this Article and, subject to the conditions set forth in §§ 26604(a), 26604(b) and 26605(d), be relieved of liability the refor upon submission of a claim for relief to the Tax Commissioner not later than the twentieth (20th) da y of the month following the month in which the tobacco products are withdrawn from the warehouse. SOURCE: GC § 19593, Subsection (a)(3) added by P.L. 10-182 . Subsection (c) amended by P.L. 28-170:2 (Jan. 29, 2 007).

lowing the month in which the tobacco products are withdrawn from the warehouse. SOURCE: GC § 19593, Subsection (a)(3) added by P.L. 10-182 . Subsection (c) amended by P.L. 28-170:2 (Jan. 29, 2 007). 2017 NOTE: References territory removed pursuant to 1 GCA § 42 0. § 26602. Levy. There is hereby levied, and shall be assessed and c ollected, upon every business engaged in the manufacture or p roduction in Guam, or importation into Guam, of any tobacco prod ucts, in addition to all other applicable taxes, an excise t ax to be measured by the application of the following rates against t he tobacco products so manufactured, produced or brought into Guam as herein provided. Such excise tax shall also be levi ed upon, assessed and collected from every business purchasi ng tobacco COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 71 products in Guam for resale if no tax had been paid upon said tobacco products as herein provided. SOURCE: GC § 19590, as added by P.L. 10-182. § 26603. Rates. The following rates shall apply in computing, assessing, and collecting the tobacco tax: (a) Cigarettes.

acco products as herein provided. SOURCE: GC § 19590, as added by P.L. 10-182. § 26603. Rates. The following rates shall apply in computing, assessing, and collecting the tobacco tax: (a) Cigarettes. A tax at the rate of Twenty Dollars ($20.00) per one hundred (100) cigarettes to be pro rated in accordance with the number of cigarettes contained in the individual package taxed. (b) Cigars. The tax rates for cigars shall be based on the following sizes: (1) Mini Cigars: Fifty-three Cents ($0.53) Per Cigar. Mini Cigars are defined as cigars with a rin g size of forty (40) or less, or a length of less than fou r and one-half inches (4.5'), regardless of ring size as specified by the manufacturer’s label. (2) Standard Cigars: Fifty-eight Cents ($0.58) Per Cigar. Standard Cigars are defined as cigars with a ring size of more than forty (40), but less than sixty-f our (64) as specified by the manufacturer’s label. (3) Large Cigars: Sixty-six Cents ($0.66) Per Cigar. Large Cigars are defined as cigars with a ri ng size of more than sixty-four (64), or a length of more t han eight inches (8'), regardless of the ring size as s pecified by the manufacturer’s label.

Large Cigars are defined as cigars with a ri ng size of more than sixty-four (64), or a length of more t han eight inches (8'), regardless of the ring size as s pecified by the manufacturer’s label. (4) Where no ring size or length is specified by the manufacturer’s label, the tax shall be Fifty-eight Cents ($0.58) per cigar. For purposes of this Secti on, ring size shall be defined as the usually accepted measure used by cigar manufacturers for determining the diameter of cigar at its widest point. A ring s ize of one (1) is equal to one sixty-fourth (1/64) of an i nch. (c) Other Tobacco Products. A tax at the rate of F ifty- three Dollars ($53.00) per pound for all other toba cco COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 72 products to be prorated in accordance with the size of the package to be taxed. (d) Creation of the Healthy Futures Fund. There is hereby created the Healthy Futures Fund (Fund) whic h shall be maintained separate and apart from other funds o f the government of Guam and shall be kept in a separate bank account and shall not be subject to any transfer au thority of I Maga’lahen Guåhan .

be maintained separate and apart from other funds o f the government of Guam and shall be kept in a separate bank account and shall not be subject to any transfer au thority of I Maga’lahen Guåhan . (1) The sum of One Million Dollars ($1,000,000) of the taxes collected pursuant to this Section sha ll be allocated and is appropriated, and shall continue t o be deemed appropriated annually to the Guam Memorial Hospital Authority for the sole and specific purpos e of funding for the line of credit pursuant to 10 GCA § 80109(s). (2) The annual allocation of One Million Dollars ($1,000,000), as appropriated pursuant to this Subsection (d), shall continue and shall remain in full force and effect until specifically revoked or amen ded pursuant to law. (3) As taxes are received and deposited into the Fund, at least one-twelfth (1/12) of One Million Do llars ($1,000,000) shall subsequently be transferred mont hly to the Guam Memorial Hospital Authority, the total amount not to exceed One Million Dollars ($1,000,00 0) per fiscal year. (4) The Guam Memorial Hospital Authority shall establish a bank account separate and apart from al l other bank accounts of GMHA and the government of Guam,

ion Dollars ($1,000,00 0) per fiscal year. (4) The Guam Memorial Hospital Authority shall establish a bank account separate and apart from al l other bank accounts of GMHA and the government of Guam, and shall deposit all funds allocated and appropriated pursuant to this Subsection into the account, and from which such funds shall only be dr awn upon for the sole and specific purpose of funding f or the line of credit pursuant to § 80104 (t), Chapter 80 Division 4, 10 Guam Code Annotated. (5) All other proceeds from taxes collected under this Section shall be deposited into the Fund and s hall COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 73 not be commingled with the General Fund. The balan ce of the Fund is subject to the following: (A) Seventy-two percent (72%) of the taxes collected shall be subject to I Liheslaturan Guåhan’s appropriation for the following purposes: (i) health, education, public safety and social programs providing awareness on tobacco and alcohol and substance abuse prevention, cessation, treatment and control; programs and activities for improving overall health and well-being; and, programs that enforce alcohol regulations; (ii)

and alcohol and substance abuse prevention, cessation, treatment and control; programs and activities for improving overall health and well-being; and, programs that enforce alcohol regulations; (ii) public safety and social programs that enforce alcohol and substance abuse regulations, reduce underage drinking, support traffic safety, reduce drug-related violence and abuse; (iii) community-based drug and substance abuse prevention programs; (iv) matters pertinent to the items, supra, as deemed appropriate by I Liheslaturan Guåhan , with preference given to programs directed towards youth, low-income or at-risk persons and families; drug, alcohol, tobacco and substance prevention, cessation, and treatment; preventative health care, and chronic disease management; and the construction and maintenance of facilities to provide a venue to promote a healthy lifestyle; (v) to the Department of Public Health and Social Services for health promotion and disease prevention programs that attempt to reduce resources spent on treating preventable illness and functional impairment, enhance the quality of life, and/or reduce disparities in the health status of populations; and COL6/6/202211 GCA

to reduce resources spent on treating preventable illness and functional impairment, enhance the quality of life, and/or reduce disparities in the health status of populations; and COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 74 (vi) to the Guam Behavioral Health and Wellness Center for tobacco prevention and cessation programs that attempt to reduce tobacco consumption; (vii) to support educational training, cultural enhancement and sports opportunities, and identify drug-free adult and youth leaders who will mentor other adolescents to live alcohol, tobacco, and drug- free lifestyles. (B) Fifteen percent (15%) of the taxes collected and any subsequent gains shall be transferred into the Guam Cancer Trust Fund for programs supporting cancer screening, treatment, support services, cancer education, and outreach programs ; (C) Twelve percent (12%) of the taxes collected to Guam Memorial Hospital Authority for operating expenses; and (D) One percent (1%) of the taxes collected shall be used to maintain the Guam Cancer Registry. (e) Creation of the Guam Cancer Trust Fund.

uam Memorial Hospital Authority for operating expenses; and (D) One percent (1%) of the taxes collected shall be used to maintain the Guam Cancer Registry. (e) Creation of the Guam Cancer Trust Fund. (1) There is hereby created the Guam Cancer Trust Fund, which shall be used to provide financial assistance to organizations that provide patient di rected services for the prevention of cancers, its treatme nt, diagnosis, and other services that may be required to access treatment, including, but not limited to, of f-island transportation and temporary housing. (2) The Guam Cancer Trust Fund shall be subject to the following: (A) Fifteen percent (15%) of the Healthy Futures Fund into the Guam Cancer Trust Fund, which shall be held in an account at a Guam financial institution separate and apart from all COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 75 other accounts and funds of the government of Guam and shall not be subject to the transfer authority of I Maga'låhen Guåhan . (B) The University of Guam, for each fiscal year, may allocate up to seventy-five percent (75%) of the Guam Cancer Trust Fund’s balance to non- profit and charitable organizations

Maga'låhen Guåhan . (B) The University of Guam, for each fiscal year, may allocate up to seventy-five percent (75%) of the Guam Cancer Trust Fund’s balance to non- profit and charitable organizations providing cancer screenings, treatment, support services, cancer education, and outreach programs; provided, however, no more than ten percent (10%) of the available funds shall be utilized for cancer education and outreach programs. (3) The University of Guam shall promulgate rules and regulations pursuant to 5 GCA Chapter 9 regardi ng the administration of the Guam Cancer Trust Fund, a s well as the application, distribution, review and investigation of such funds. (A) Such rules and regulations shall be posted on the University’s website. (B) The initial rules and regulations governing the Guam Cancer Trust Fund shall be submitted to I Liheslatura within ninety (90) days from the effective date of this Act. (4) The Guam Cancer Trust Fund may receive additional appropriations, contributions, endowment s, or gifts in cash or otherwise from any source, incl uding Guam, corporations or other businesses, individuals , and interested parties.

receive additional appropriations, contributions, endowment s, or gifts in cash or otherwise from any source, incl uding Guam, corporations or other businesses, individuals , and interested parties. (5) The aggregate principal sum deposited in the Guam Cancer Trust Fund shall be invested by the University of Guam, subject to its investment polic y as established by the Board of Regents. (6) No authorization for the withdrawal or transfer of cash or funds shall be made from the Guam Cancer Trust Fund account created pursuant to § 26603(e)(2)(A) for purposes other than those COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 76 enumerated in § 26603(e)(2)(B) and § 26603(e)(5), a nd not in accordance with the rules and regulations governing the Guam Cancer Trust Fund. Any person in violation of this Subsection shall be guilty of a misdemeanor. (7) If the Guam Cancer Trust Fund is terminated, the monies remaining in the Trust Fund shall revert to the Healthy Futures Fund. (8) The President of the University of Guam shall submit a report on a quarterly basis to the Speaker of I Liheslaturan Guåhan of the revenues collected, gained, and expended from the Guam Cancer

nd. (8) The President of the University of Guam shall submit a report on a quarterly basis to the Speaker of I Liheslaturan Guåhan of the revenues collected, gained, and expended from the Guam Cancer Trust Fund, the balance sheet or equivalent thereof, and monthly ba nk statements and bank reconciliations (if any) over t he three (3) months of each quarter; and, shall post such reports on the University’s website. SOURCE: GC § 19591, as amended by P.L. 17-004. Amended by P.L. 25-104:2. Repealed/reenacted by P.L. 27-005:V:2. S ubsection (d) amended by P.L. 27-029:VI:17, repealed and reenacte d by P.L. 28- 068:IV:25 (Sept. 30, 2005), amended by P.L. 30-080: 2 (Feb. 2, 2010), P.L. 30-166:2 (July 16, 2010). Subsection (d)(1)(G) add ed by P.L. 31-132:2 (Nov. 17, 2011). Subsections (a),(b) and (c) amend ed by P.L. 30-080:3 (Feb. 2, 2010). Subsection (c) amended by P.L. 32- 132:1 (Feb. 14, 2014). Subsection (d)(2) amended by P.L. 32-216:2 (Dec. 29 , 2014). Subsections (e)(2) and (e)(2)(a) amended by P.L. 32-216:3 (Dec. 29, 2014). Subsection (e) amended by P.L. 34-004:1 (May 10, 2017). Subsec tions (a), (b), and (c) amended by P.L. 34-116:4 (Aug. 24, 2018).

ections (e)(2) and (e)(2)(a) amended by P.L. 32-216:3 (Dec. 29, 2014). Subsection (e) amended by P.L. 34-004:1 (May 10, 2017). Subsec tions (a), (b), and (c) amended by P.L. 34-116:4 (Aug. 24, 2018). Subs ection (d)(1) amended by P.L. 35-055:2 (Nov. 27, 2019). 2018 NOTE: Subitem designations in subsections (d) and (e) altered/added pursuant to 1 GCA § 1606. 2017 NOTE: Reference in subsection (e)(3) to 'Territory' remov ed pursuant to 1 GCA § 420. 2013 NOTE: Pursuant to P.L. 32-024:2 (May 6, 2013) which ren amed the Department of Mental Health and Substance Abuse (DM HSA) to the Guam Behavioral Health and Wellness Center, all ref erences to DMHSA were altered to the Guam Behavioral Health and Well ness Center pursuant to P.L. 32-024:4. § 26604. Export Drawback. There shall be allowed to any applicant therefor an export drawback of the full amount of a tax paid under thi s Article, COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 77 exclusive of penalties and interest, upon fulfillme nt of the following conditions: (a) That the tobacco manufactured or produced in Gu am or brought into Guam, has been consigned, and duly delivered to a point outside the territory

st, upon fulfillme nt of the following conditions: (a) That the tobacco manufactured or produced in Gu am or brought into Guam, has been consigned, and duly delivered to a point outside the territory of Guam, or delivered on board a ship or vessel for ship store use or ship’s consumption; (b) That the tobacco so exported or so delivered fo r ship store use or ship’s consumption, was not subject to any sale within Guam other than a transfer involving substan tially all the stock in trade, good will and franchise or othe r rights concerning the tobacco upon which the tax was paid; (c) That the taxes levied hereunder have been fully paid to the government of Guam; and (d) That the applicant is a duly licensed manufactu rer, producer, wholesaler or retailer in Guam. SOURCE: GC § 19592. § 26605. Military Sales Drawback. There shall be allowed to any applicant therefor a drawback of the full amount of tax paid under this Article u pon a satisfactory showing, within the rules and regulations promulgat ed by the Tax Commissioner, that: (a) The tobacco manufactured or produced in Guam, o r brought in the territory of Guam, has been sold, co nsigned, and duly delivered to, an authorized

ons promulgat ed by the Tax Commissioner, that: (a) The tobacco manufactured or produced in Guam, o r brought in the territory of Guam, has been sold, co nsigned, and duly delivered to, an authorized purchaser for any United States military establishment in Guam; (b) The tobacco sold, consigned and delivered to su ch military establishment was not the subject of any p rior sales transaction in Guam other than a transfer of substa ntially the entire stock in trade, good will and franchise or o ther rights concerning the tobacco upon which the tax has been paid; (c) The taxes levied under this Article have been f ully paid to the government of Guam; and (d) The applicant applying for the drawback is a du ly licensed wholesaler or retailer, in Guam. COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 78 SOURCE: GC § 19592.1. § 26606. Departing Passengers Drawback. In addition to any other drawback provided for unde r this Article, a drawback shall also be allowed to any ap plicant for the full amount of the tax paid under this Article upon a satisfactory showing, within the rules and regulations promulgat ed by the Tax Commissioner, that the tobacco and tobacco

any ap plicant for the full amount of the tax paid under this Article upon a satisfactory showing, within the rules and regulations promulgat ed by the Tax Commissioner, that the tobacco and tobacco products upon which the tax has been paid have been sold to persons lic ensed as concessionaires at Guam International Air Terminal or the Commercial Port under § 3226 of 11 GCA and that tho se persons have resold such tobacco or tobacco products to per sons departing Guam. SOURCE: GC § 19592.2, added by P.L. 14-106, repealed and r eenacted by P.L. 14-107. NOTE: Pursuant to the authority granted by 1 GCA § 1606 , the reference to the Government Code section subsection (e) was a ltered to reflect the codification of this section in the GCA. § 26607. Spoilage Drawback. There shall be allowed a spoilage drawback of the f ull amount of the tax paid under this Article, exclusiv e of any penalties or interest, upon a satisfactory showing, under the rules and regulations promulgated by the Tax Commissioner , that: (a) The tobacco products manufactured or produced i n Guam, or imported into Guam, have become incapable of use as such for human consumption due to spoilage, and have been

e Tax Commissioner , that: (a) The tobacco products manufactured or produced i n Guam, or imported into Guam, have become incapable of use as such for human consumption due to spoilage, and have been destroyed under the supervision of the Tax Commissioner or his representative; (b) The tobacco products were not the subject of an y prior sales transaction in Guam other than a transf er involving substantially the entire stock in trade, good will and franchise or other rights concerning the tobacco pr oducts with respect to which the tax was paid. (c) The applicant is a duly licensed manufacturer, producer, or wholesaler or retailer in Guam and is either the taxpayer or a transferee from or through the taxpay er of substantially the entire stock in trade, good will and franchise COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 79 or other rights concerning the tobacco products wit h respect to which the tax was paid; (d) The applicant is not indemnified by insurance o r otherwise in respect of the tax. SOURCE: GC § 19595. § 26608. Spoilage Relief. Where tobacco products which have been placed in a bonded warehouse without payment of the taxes levied under this

e o r otherwise in respect of the tax. SOURCE: GC § 19595. § 26608. Spoilage Relief. Where tobacco products which have been placed in a bonded warehouse without payment of the taxes levied under this Article, upon a satisfactory showing, under the rules and re gulations promulgated by the Tax Commissioner, that such toba cco products have been incapable of use as such for hum an consumption due to spoilage and have been destroyed under the supervision of the Tax Commissioner or his represen tative, and that the taxpayer is not indemnified by insurance o r otherwise in respect of the tax, the taxpayer manufacturing, pro ducing or importing such tobacco products may be relieved of his tax liability with regard to such tobacco products upon submission of a claim for relief to the Tax Commissioner not late r than the twentieth (20th) day of the month following the mon th in which such tobacco products have been destroyed under the supervision of the Tax Commissioner or his representative. SOURCE: GC § 19596. § 26609. Tobacco Products Regulated and Taxed. (a) No business engaged in the manufacture, product ion, distribution, or importation of tobacco products, o r any employee or agent

SOURCE: GC § 19596. § 26609. Tobacco Products Regulated and Taxed. (a) No business engaged in the manufacture, product ion, distribution, or importation of tobacco products, o r any employee or agent of the same, shall sell such products to r etailers or consumers through any multi-pack discounts (e.g., ' Buy two, get one free'). (b) No business engaged in the manufacture, product ion, distribution, or importation of tobacco products, o r any employee or agent of the same, shall sell, or otherwise prov ide or distribute to retailers or consumers, any tobacco products wit hout charge or for less than the listed or non-discounted price, i n exchange for the purchase of any other tobacco product. (c) For the purposes of this Section, listed or non -discounted price shall mean the higher of the prices listed fo r a tobacco COL6/6/202211 GCA FINANCE & TAXATION CH. 26 BUSINESS PRIVILEGE TAX LAW 80 product on its package, or the price listed on any related shelving, posting, advertising, or display at the place where the tobacco product is sold or offered for sale plus all applic able taxes if such taxes are not included in the stated price, and bef ore the application of any discounts.

display at the place where the tobacco product is sold or offered for sale plus all applic able taxes if such taxes are not included in the stated price, and bef ore the application of any discounts. (d) Nothing in this Act shall be construed as a pr ohibition on individual sales of tobacco products at a discounte d rate; provided, however, that it is not attached to a sale of anoth er tobacco product at a reduced price, or even as a give-away. SOURCE: Added by P.L. 32-200:1 (Oct. 13, 2014). 2018 NOTE: Subsection designations added pursuant to 1 GCA 1 606. ---------- ARTICLE 7 GENERAL SALES TAX SOURCE: Entire Article added by P.L. 34-087:1 (Mar. 16, 2 018). Repealed by P.L. 34-113:1 (July 17, 2018). ---------- COL6/6/2022