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07/10/2025 - Rep. Marissa Flores said the CNMI only collected a mere $87,000 in fees and taxes from $153-million worth of military activities in the Northern Marianas. Flores shared that data, which she said was disclosed at a recent meeting with the military, at the end of the House Standing Committee on Ways and Means budget hearing for the Department of Finance last July 9.
“Why are we not collecting? What is the problem?” Flores asked DOF and the Division of Revenue and Taxation.
She added, “All this military build-up is happening…Are you collecting tax on developer’s tax at all with the military?”
Division of Revenue & Taxation director Daniel Alvarez responded, “I do not believe the military projects fall under developer tax. I would probably have to confirm that with legal.”
Flores said the CNMI also needs to monitor how many military developers are being brought in because the island does not have the workforce.
“We're losing money in that area. So many projects came and left, and we're only charging on the construction tax. Again, which is another problem, because now we know that they're bringing in their construction material,” she explained.
The lawmaker recommended that DOF have an increased presence on Tinian.
Finance Secretary Tracy Norita later clarified that it has been a long-standing issue. “This is a conversation that has been going on between the municipality of Tinian and my office and [Department of Public Works] on who's going to assess the tax. We've received information from DPW, I believe they've asked for [the Attorney General’s] opinion on whether they can assess the tax. To this day, I don't believe they're assessing it because there is no legal authority to assess the developer's tax on the military projects.”
Norita added, “And so at this point, I believe it's legislation that's required to specify what exactly is exempted from the developer tax, whether it's a military project with an independent contractor or only military projects that are conducted by the military themselves. So again, it goes back to the legislation and the authority for DPW to assess the developer's tax.”
DPW Secretary Ray Yumul told Marianas Press that they submitted an internal Legal Services Request form to the CNMI AG a few months ago but have not received a response.
Report by Thomas Manglona II.
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