Interior Secretary Zinke Announces Release of $77 Million to Guam in Section 30 Tax Advance Payments for FY 2019
Written by Phillip Leon Guerrero on September 21, 2018
WASHINGTON – U.S. Interior Secretary Ryan Zinke today announced the release of $77,046,768 in federal income tax advance payments under Section 30 of the Organic Act of Guam for fiscal year 2019 to the U.S. territory of Guam.
“I just had a wonderful and productive visit to Guam, which furthered my position that Guam is a hub for security and stability in the region and plays a key role in the Trump Administration’s Indo-Pacific strategy,” said Secretary Zinke.
Under Guam’s Organic Act, federal income taxes derived from active members of the United States Armed Forces and pensions paid to retired civilian and military employees of the United States who reside on Guam are annually “covered-over” to the Guam Treasury to support the operations, activities, and programs of the local government (48 U.S. Code 1421 Section h).
“The Secretary and I are pleased to advance these funds to Guam,” said Doug Domenech, Assistant Secretary, Insular and International Affairs. “Given the Secretary’s recent trip to Guam, we are both aware of the challenges that Guam faces and recognize how critical and necessary these funds are to their government operations and services especially now in the face of the recovery from Typhoon Mangkhut.”
Recent changes under the National Defense Authorization Act of 2017 (U.S. Public Law 114-328, Section 1703) established a Guam World War II Claims Fund, and provided a mechanism for the deposit of amounts collected under Section 30 over a threshold set by the Department of the Treasury for fiscal year 2014. The deposit of amounts over the 2014 threshold are to be made into the Guam World War II Claims Fund at the Department of the Treasury. The Department of the Interior’s Office of Insular Affairs, utilizing certifications of actual amounts received from the Department of the Treasury’s Internal Revenue Service (IRS), has deducted a total of $6,442,665 from the Guam Section 30 2019 advance funds for this purpose.
Under U.S. law, Section 30 advance payments are to be processed to Guam every September. OIA makes payment adjustments based on actual certifications received from the IRS for the previous year.