Mostly status quo even with new sales tax law in Guam
Two fire stations and a police precinct will remain closed as austerity measures, despite a new law that temporarily increases taxes to generate more government revenue, according to the governor's office.
Gov. Eddie B. Calvo Friday afternoon signed into law a bill to help address a $67 million revenue shortfall this fiscal year, caused by federal tax cuts. It increases the business privilege tax by 25 percent for six months, and implements a new 2 percent sales tax, beginning Oct. 1. Calvo signed into law Sen. Joe San Agustin's Bill 248-34, a day after senators narrowly passed it.
Calvo said it is premature to rescind the austerity measures, such as the public safety closures and plans to go into a 32-hour work week.
Only the Guam Department of Education has announced it will now hold off on implementing a 32-hour work week, as well as other deeper cuts such as delaying the school year and limiting substitute teachers.
Read more: https://www.guampdn.com/story/news/2018/03/16/guam-governor-signs-sales-tax-bill-into-law/431020002/
