House bill seeks to exempt certain military from excise tax on imported vehicles

Pago Pago, AMERICAN SAMOA — House Bill 38.26 was introduced for its first reading on Wednesday last week in the House of Representatives. The bill seeks to create a new provision within Title 11, Chapter 10 of the Excise Tax on Imports, where it would allow for retired U.S. military veterans and veterans with 100% service-connected disabilities to import vehicles into American Samoa without paying the import tax on their vehicles, amending section 11.1002 of the American Samoa Code Annotated. 

The introduction states that “American Samoa’s retired military veterans, and 100% service-connected veterans, of the United States Armed Services have paid a heavy price and have served the people of American Samoa and the United States of America with faithful service”. 

While the public at large has benefited greatly from this service, the veterans are not adequately compensated for their services, the bill reads. 

 “Imposing the tax for vehicles imported by veterans can pose a hardship for retired and 100% service-connected veterans, and by exempting veterans from paying the tax for one vehicle, it would not substantially affect the Territories revenues. Retired military and 100% service connected veterans contribute greatly to the economic development and income generation of American Samoa”, the introduction concluded. 

Title 11, Chapter 10, section 11.1002 covers “amount of tax on certain items” and HB 38.26 seeks to amend the current language of provisions covering taxes on vehicles, by adding a section (D) which reads:

“(D) Notwithstanding provisions (A), (B), and (C), retired military veterans and 100% service connected veterans are exempted from paying the tax levied on motor vehicles, motor bicycles, automobiles, trucks and/or vans, new or used. This exemption applies to imported motor vehicles, motor bicycles, automobiles, trucks, or vans that have been sold, given, or donated to a retired military or 100% service connected veteran of the armed services. 

This bill shall become effective 60 days after the end of the session, at which it has been passed. 

BACKGROUND

The latest data is outlined in the “Communication and Transportation” section of the American Samoa 2021 Statistical Yearbook, released this month (August) by the DOC’s Statistical Division and the Yearbook notes the continued increase in the number of vehicles in the Territory, with the number of registered vehicles in 2021 surpassing the 10,000 mark; an annual increase of 8%.

Some in the community who have shared their views with Samoa News say that the spike in the number of cars on the road, including car rentals and taxis occurred around the time that local residents started getting COVID-19 related money, such as the popular stimulus checks and other benefits — for example, the “Additional Child Tax Credit” for those who qualify.

“Too many cars on the road for a small island,” is the common comment oft received by Samoa News.

DOC also reports that there has been an almost 20% increase in the number of driver’s licenses and permits issued in 2021 from 2020.