Chapter 51

11 GCA FINANCE & TAXATION CH. 51 INCOME TAX REFUND EFFICIENT PAYMENT TRUST FUND ACT OF 2002 1 CHAPTER 51 INCOME TAX REFUND EFFICIENT PAYMENT TRUST FUND ACT OF 2002 SOURCE: Entire chapter enacted by P.L. 26-074:2 (Mar. 7, 2 002). § 51101. Creation of the Income Tax Return Efficien cy Trust Fund. § 51102. Deposit of Funds. § 51103. Expenditures from the Trust Fund. § 51104. Contracts. § 51105. Prohibitions Against Encumbrances. § 51106. Reports. § 51107. No Transfer Authority. § 51108. Effective Date. § 51101. Creation of the Income Tax Refund Efficien t Payment Trust Fund . (a) There is hereby created, separate and apart fro m all other funds of the government of Guam, a trust fund known as th e Income Tax Refund Efficient Payment Trust Fund (‘Trust Fund’). The Trust Fund shall not be commingled with the General Fund or an y other funds of the government of Guam, and it shall be maintained in a separate bank account, administered by the Tax Commissioner. The Trust Fund’s interest and investment earnings shall be subject t o legislative appropriation and shall be expended exclusively for the purposes set forth under § 51103 of this Act.

Commissioner. The Trust Fund’s interest and investment earnings shall be subject t o legislative appropriation and shall be expended exclusively for the purposes set forth under § 51103 of this Act. (b) The deposits made to the Trust Fund pursuant to § 51102 shall be invested or reinvested into interest bearing ins truments, United States treasury notes, investment grade and insured corpor ate notes, and other like instruments which are readily convertible to c ash needed to pay income tax refunds. § 51102. Deposit of Funds . The Director of the Department of Administration ( DOA) shall directly deposit, upon receipt of any payment of i ncome tax, including, but not limited to, individual, corporate and withh olding taxes, interest and penalties, to the Trust Fund a portion of the t ax payment received to be calculated by multiplying the amount of the tax payment received by COL1031201411 GCA FINANCE & TAXATION CH. 51 INCOME TAX REFUND EFFICIENT PAYMENT TRUST FUND ACT OF 2002 2 the quotient derived by the provision for tax refun ds (the dividend) divided by the total income taxes, including, but n ot limited to, individual, corporate and withholding taxes, intere st and

2 2 the quotient derived by the provision for tax refun ds (the dividend) divided by the total income taxes, including, but n ot limited to, individual, corporate and withholding taxes, intere st and penalties, (the divisor) amounts adopted in the pertinent governmen t of Guam fiscal year budget, so that, at the end of the fiscal year, the total a mount set aside in said budget for income tax refunds, the ea rned income tax credit and advanced child tax credits shall have been depo sited in said Fund. The funds deposited in the Trust Fund by the Direct or of Administration shall immediately be transferred to the Income Tax Reserve Fund upon the written request of the Tax Commissioner for pay ments made pursuant to § 50105 of Chapter 50, Division 2 of Ti tle 11 of the Guam Code Annotated. The interest earned by money in th e Trust Fund shall be held in the Fund. SOURCE: Amended by P.L. 28-068:IV:97 (Sept. 30, 2005), P. L. 29-017:2 (Sept. 24, 2007). § 51103. Expenditures from the Trust Fund. In order for I Liheslaturan Guåhan to make the proper legislative appropriation pursuant to § 51101(a) of this Chapte r, the Tax Commissioner shall submit to I Liheslaturan Guåhan [Guam

e Trust Fund. In order for I Liheslaturan Guåhan to make the proper legislative appropriation pursuant to § 51101(a) of this Chapte r, the Tax Commissioner shall submit to I Liheslaturan Guåhan [Guam Legislature] on the 15th day of January each year a detailed budget request of itemized cost of allowable expenditure, for an appropriation from the earnings of the Trust Fund. All interest and investment earnings from the Trust Fund pursuant to § 51101(b) of this Chapter shall be exclusively expended for the following purposes: (a) Notwithstanding other provisions of law, the De partment of Revenue and Taxation is hereby authorized to eit her enter into contracts with temporary income tax returns process ors (‘processors’), or to hire seasonal employees, as d eemed necessary by the Tax Commissioner anytime during the period o f filing dates established by the Internal Revenue Service for a p eriod of not more than three (3) months to process income tax returns . (1) The Department of Revenue and Taxation shall prioritize the processing of income tax returns acc ording to their filing date.

iod of not more than three (3) months to process income tax returns . (1) The Department of Revenue and Taxation shall prioritize the processing of income tax returns acc ording to their filing date. (2) The Department of Revenue and Taxation shall submit to I Liheslaturan Guåhan [Guam Legislature] a COL1031201411 GCA FINANCE & TAXATION CH. 51 INCOME TAX REFUND EFFICIENT PAYMENT TRUST FUND ACT OF 2002 3 monthly report on the status of the income tax proc essing, which shall include the following: (A) number of income tax returns processed; (B) number of income tax refunds issued and the tot al dollar amount; (C) number of income tax returns waiting to be processed; (D) expected date of completion for the processing of income tax returns pending; and (E) any other pertinent information. (b) Proper training of employees hired pursuant to Subsection (a) of this Section. (c) Computers and other equipments necessary to qui ckly process the income tax returns. NOTE: Pursuant the authority granted by 1 GCA § 1606, num bers and/or letters were altered to adhere to the Compiler’s alpha-nume ric scheme. § 51104. Contracts .

ckly process the income tax returns. NOTE: Pursuant the authority granted by 1 GCA § 1606, num bers and/or letters were altered to adhere to the Compiler’s alpha-nume ric scheme. § 51104. Contracts . If the Department of Revenue and Taxation chooses t o enter into contracts with temporary income tax returns process ors, the Department of Revenue and Taxation shall promulgate rules and regulations governing the contract. The processors under contr acts shall be deemed independent contractors and not employees of the go vernment of Guam, nor shall they be entitled to any benefits otherwis e available to government of Guam employees, including, but not li mited to, sick leave, annual leave, retirement, worker’s compensat ion, group life insurance, group medical insurance, or periodic or other step increases in wages. § 51105. Prohibitions Against Encumbrances . Any and all expenditures from the Trust Fund shall be for the payment outlined in § 51103, and for no other purpo se. The Trust Fund shall not be subject to or permit I Maga’lahen Guåhan to pledge the Trust Fund for payments or repayments of any govern ment of Guam general fund obligations or obligations of any auto nomous

st Fund shall not be subject to or permit I Maga’lahen Guåhan to pledge the Trust Fund for payments or repayments of any govern ment of Guam general fund obligations or obligations of any auto nomous agency, public corporation or government instrumentality. COL1031201411 GCA FINANCE & TAXATION CH. 51 INCOME TAX REFUND EFFICIENT PAYMENT TRUST FUND ACT OF 2002 4 § 51106. Reports . (a) Monthly Reporting. The Tax Commissioner and th e Director of Administration shall report to I Maga’lahen Guåhan and I Liheslaturan Guåhan regarding the total deposits in each month and the current balance of the Trust Fund within fifteen (15) calen dar days of the end of each month. (b) Monthly Audit by the OPA. The Office of Public Accountability shall perform a monthly audit on the Income Tax Refund Efficient Payment Trust Fund and the compliance of the Director of the Department of Administration with § 51102 of Chapte r 51 of Title 11, Guam Code Annotated. Said audit shall include, but is not limited to, auditing the amounts of income tax, including, but not limited to, individual, corporate and withholding, inclusive of interest and penalties, received by the Department of Revenue and Taxation and

, auditing the amounts of income tax, including, but not limited to, individual, corporate and withholding, inclusive of interest and penalties, received by the Department of Revenue and Taxation and the deposits made on a daily basis by the Director of the Depart ment of Administration and the Treasurer of Guam or any oth er government of Guam agency or instrumentality to the Income Tax Re fund Efficient Payment Trust Fund. Any bond proceeds or other deposits not related to daily revenue collection by the government of Guam shall be delin eated separately and footnoted in said report in compliance with Interna l Revenue Code Privacy Act provisions. The OPA shall prepare and p rovide a written report of compliance with § 51102 of Chapter 51, Ti tle 11, Guam Code Annotated, within fifteen (15) calendar days of the end of each month for the preceding month to I Maga’lahen Guåhan , to the Speaker of I Liheslaturan Guåhan , and to the Attorney General of Guam. (c) Beginning with the month ended August 2012, the Director of Administration shall submit the Income Tax Refund E fficient Payment Trust Fund printed or online monthly bank statement s to the Speaker of I Liheslaturan Guåhan

h ended August 2012, the Director of Administration shall submit the Income Tax Refund E fficient Payment Trust Fund printed or online monthly bank statement s to the Speaker of I Liheslaturan Guåhan and the Office of Finance and Budget no later than five (5) days after the end of each month. SOURCE : Amended by P.L. 29-017:3 (Sept. 24, 2007), P.L. 3 1-074:V:5 (June 6, 2011). Subsection (c) added by P.L. 31-233:XII:19 (Sept. 7, 2012), amended by P.L. 32-068:XII:26 (Sept. 11, 2013). § 51107. No Transfer Authority . The money placed in the Trust Fund is not subject t o any transfer authority of I Maga’lahen Guåhan . COL1031201411 GCA FINANCE & TAXATION CH. 51 INCOME TAX REFUND EFFICIENT PAYMENT TRUST FUND ACT OF 2002 5 § 51108. Effective Date . The provisions of the Income Tax Refund Efficient P ayment Trust Fund Act of 2002 shall be effective on October 1, 2 002. ---------- COL10312014