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Treasurer drops $25 charge per vehicle
Tuesday,
June 30, 2009
Owners of rental car, bus and taxi businesses can breathe a sigh of relief. It appears the Treasurer Magalei Logovii has suspended the charging of a $25 business license fee for each vehicle that they operate.
Owners of commercial transportation were caught by surprise when they were required to pay $25 for each rental car, bus or taxi that they owned. They were told by the Revenue Division that the change had been ordered by Treasurer Magalei. In the past, the business operators only had for one business license.
Matautia Amos Galeai who owns one of the oldest car rental business in the territory questioned how the Treasurer could unilaterally make the change without any amendment to the law and calling a public hearing.
The Department of Commerce which handles business licenses was also not consulted about the change.
It seems however that questions regarding the Treasurer’s move prompted a change of heart from Magalei. In a June 29 letter from the head of the Revenue Division, Toa Fia, DOC was told that Treasurer Magalei Logovii on June 2, informed them to suspend collecting of business license fees for each taxi, bus and car rental until further notice.
DOC is now reverting back to charging only one business license fee of $25, regardless of the number of vehicles, a company owns. It’s not known at this stage whether owners who were charged for individual vehicles will receive a refund from Treasury.
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