Territory gets $20.4 million from US Treasury for tax rebate checks
The local economy will see a tremendous boost, thanks to the $20.4 million received this week from the United States Treasury for the distribution of tax stimulus rebates. The amount was issued based on an estimate by the Treasury Secretary as being equal to the aggregate benefits provided to residents of American Samoa based on local taxes.
Governor Togiola Tulafono made the announcement this week, after the United States Treasury accepted ASG’s proposed plan for the disbursement of tax rebates from President Bush’s economic growth package, or tax stimulus rebate.
It was two weeks ago that the Governor submitted the territory’s plan to the US Treasury. The plan is based on information obtained from 2007 income tax returns filed this year.
(Federal law provides that in order for the territory to be able to receive money from the US Treasury, it must produce a plan, approved by the Secretary of Treasury, under which American Samoa will promptly distribute the rebates to its residents.)
The Governor says the money is being held in a separate account, and he expressed his delight with the new funds that will be injected into the local economy. He says tax rebate checks will be issued within two weeks after a final tax system check, which will include eligibility and qualifications criteria check and recalculations by the Treasury Department and the Tax Office.
The Governor urges local taxpayers to listen out for the announcement of when the rebate checks will be distributed, and not to visit the Disbursing Office in Utulei for checks, yet. The rebate checks will be issued in alphabetical order and staggered throughout the week to avoid congestion and overcrowding of the Tax Office, as the ASG is expected to release close to 3,000 rebate checks during the first week of distribution.
“This is great news for the people of American Samoa as it will give us a big boost in our economy,” Togiola said. ”I wish to kindly ask the public for their patience in allowing the Treasury and the Tax Office staff to perform their duties in testing and checking the level of payments for each local tax payer and the information that it currently has in its system.”
The checks are not ready yet and because the tax stimulus rebate comes from federal funds, the Governor says “we must be sure that we have the accurate numbers and not issue above the amount.” The tax stimulus rebates will provide “eligible” tax payers with payments of $300 to a maximum of $600 per tax payer, and $300 per qualifying child. According to the Tax Office, not everyone qualifies.
The Governor is grateful to the Department of Treasury and its staff for working diligently to secure the economic growth package for the Territory. “I wish to commend our Treasurer Gaea Perefoti Failautusi and Tax Manager Melvin Joseph for their excellent work with the U.S. Treasury to ensure that our people in American Samoa who are eligible for the tax rebate will receive it,” said Togiola. “I also wish to give special thanks to Mel Joseph for developing a successful plan with the U.S. Treasurer that assures all of our eligible tax payers are covered in this single payment.”
He added, “With the high cost of gasoline and food, this is wonderful news for our people and our economy.”
People must file a tax return for their 2007 income to be eligible for a rebate check, and the rebate checks will be issued in the order of when the tax payer filed their tax return prior to the tax filing deadline of April 15th.
Payments based on 2007 individual income tax returns filed on or before April 15 will be processed until July 31, 2008, and those who file their returns after April 15 but before November 30 will be paid by the local Treasury Department by December 31, 2008.
According to the approved plan, funds received from the federal government for the rebates are not to be used for administrative expenses, and ASG is required to provide quarterly reports to the federal government showing the amount of money in the trust account and the total paid out for that specific quarter.
All unused funds must be returned to the US Treasury Department.
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