Members of the business community packed the Guam Congress Building on June 9 for the public hearing of Bill 11-38, a measure to lower the Guam business privilege tax rate from 5% to 4%.
Opening discussions was a panel consisting of the Department of Administration, Department of Revenue and Taxation, and the Bureau of Budget and Management Research which raised concerns on the bill.
Lestor Carlson, director of BBMR, said that the reduction of 1% of BPT would result in a loss of $81.9 million in collections based on projected BPT collections in the Fiscal Year 2026 Executive Budget Request.
Carlson also reported that 3,010 new business licenses were issued and 32,119 business licenses were renewed. He said that “this is reflective of the appetite to do business on Guam regardless of the 5% BPT.”
A public hearing for Bill 11-38 was held on June 9. Photo by Skyler Obispo
Gov. Lourdes A. Leon Guerrero said in an op-ed to local media, including the Journal, that nearly 90% of Guam’s businesses pay 3% or less in BPT, and that the loss of the 1% in BPT would mean less for education, healthcare, public safety, and road repairs.
“Let’s be clear: these aren’t just numbers — they represent services that touch every part of our lives. With the revenues we’ve protected, our administration has expanded critical services,” she wrote.
However many in the private sector argue that the 1% savings in taxes could benefit the employees of companies, therefore putting money back into Guam’s economy.
Additionally, Mary P. Rhodes, president of the Guam Hotel and Restaurant Association said the tax relief would help small or struggling businesses, especially those in the tourism industry, where Guam’s visitor numbers are still under 50% of pre-Covid levels.
In a statement issued by the office of Sen. Eulogio Shawn Gumataotao following the hearing, Baldyga Group chairman and CEO, Mark S. Baldyga, said that payroll, utilities, and maintenance are increasing while there is a revenue shortfall tied to low visitor numbers.
Regional leaders, government officials, and industry executives gathered at the Guam International Airport Authority on Wednesday, July 22 for the inaugural session of the Guam-CNMI Visa Waiver Working Group, driving a unified regional effort to expand the Guam-CNMI Visa Waiver Program to include the Philippines.
The commercial adult-use cannabis industry on Guam has officially launched following the issuance of the island's first recreational cannabis cultivation license to local grower Stephen Roberto, operator for Deep Green Guam of Guam Real Deal, LLC.
The Guam Economic Development Authority awarded $316,857.94 in grant funding to 17 local community organizations and public agencies during a check presentation ceremony at Adelup on Wednesday, July 15.
