5
3/9/2020 1 Temporary Economic Assistance and Mitigation (TEAM) Guam Plan 1 Leon Guerrero- Tenorio Administration TEAM Guam Plan The Leon Guerrero-Tenorio Administration recognizes the impact of the COVID-19 on the individuals, families, and businesses of Guam. Through the Government of Guam’s Fiscal Discipline and Increased Revenue Collection Efforts, the government is in a position to leverage its cash flow for the temporary benefit of the individuals, families, and businesses of Guam through the TEAM Guam Plan totaling almost $40 million in economic relief over a three-month period. The Leon Guerrero-Tenorio Administration stresses the temporary nature of this TEAM Guam Plan and will continue to monitor and re-assess its implications on the economy and the Government of Guam’s fiscal position as data becomes available. 2 1 2

TEAM Guam Plan - TownNews€¦ · 3/9/2020 2 Overview: TEAM Guam Plan • Five-Point Plan to Assist Individuals, Families, and Businesses of Guam 1. Postpone Payment of 40% of BPT

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: TEAM Guam Plan - TownNews€¦ · 3/9/2020 2 Overview: TEAM Guam Plan • Five-Point Plan to Assist Individuals, Families, and Businesses of Guam 1. Postpone Payment of 40% of BPT

3/9/2020

1

Temporary Economic Assistance and Mitigation (TEAM)Guam Plan

1

Leon Guerrero-Tenorio Administration

TEAM Guam PlanThe Leon Guerrero-Tenorio Administration recognizesthe impact of the COVID-19 on the individuals, families,and businesses of Guam. Through the Government ofGuam’s Fiscal Discipline and Increased RevenueCollection Efforts, the government is in a position toleverage its cash flow for the temporary benefit of theindividuals, families, and businesses of Guam through theTEAM Guam Plan totaling almost $40 million in economicrelief over a three-month period.

The Leon Guerrero-Tenorio Administration stresses thetemporary nature of this TEAM Guam Plan and willcontinue to monitor and re-assess its implications on theeconomy and the Government of Guam’s fiscal position asdata becomes available.

2

1

2

Page 2: TEAM Guam Plan - TownNews€¦ · 3/9/2020 2 Overview: TEAM Guam Plan • Five-Point Plan to Assist Individuals, Families, and Businesses of Guam 1. Postpone Payment of 40% of BPT

3/9/2020

2

Overview: TEAM Guam Plan

• Five-Point Plan to Assist Individuals, Families, and Businesses of Guam1. Postpone Payment of 40% of BPT Due 2. Cover 100% of Credit Card Fees for Customers3. Offer Small Business Loans through GEDA4. Rebate % of Fees to Lower Air Carrier Costs5. Request Utilities to Consider Payment Plan

Options for Residential Customers

• Government Austerity Measures3

POSTPONECustomer Payment of 40% of BPT Due

1. Businesses can Voluntarily Postpone Payment of 40% of Business Privilege Tax (BPT) due on April 20th (now due on July 20th); May 20th (now due on August 20th); and June 20th (now due on September 20th) with Interest and Penalties WAIVED.

- Example: Business A* owes $50,000 of BPT on April 20th, June 20th, and July 20th totaling $150,000. Business A must file a GRT Form during each month and pay $30,000 (60% of BPT due) to DRT each month, totaling $90,000. The remaining $20,000 due on April 20th is due on July 20th; $20,000 due on May 20th is due on August 20th; and $20,000 due on June 20th is due on September 20th with no interest or penalties charged to Business A.

3-Month Economic

Relief

$33M

4

*Business A is assumed not to be eligible under the Dave Santos Act. The 40% postponement is applicable to the tax due, less exemptions, if any.

3

4

Page 3: TEAM Guam Plan - TownNews€¦ · 3/9/2020 2 Overview: TEAM Guam Plan • Five-Point Plan to Assist Individuals, Families, and Businesses of Guam 1. Postpone Payment of 40% of BPT

3/9/2020

3

COVER100% of Credit Card Fees

2. Government will temporarily Cover and Pay 100% of the Credit Card Fees charged to Customers for use of Credit and Bank Cards to pay for government taxes (3.7% fee) and non-tax payments (avg. 2.4% fee - tiered fee schedule) from April 1st

through June 30th. Payments with CCs for the 40% Postponed BPT payments due in July, August, and September 2020 will also be covered and paid by the government.

- Example: Person A renews their Vehicle Registration in April 2020 for a total balance of $150. The CC Fee for this transaction would have been $4.45, but this fee will be temporarily covered by the government.

3-Month Economic

Relief

$3–5M

5

OFFERSmall Business Loans

3. Offer Small Business Loans up to $50,000 through one of GEDA’s Loan Programs with Initial Payments Deferred for Ninety (90) Days to help small businesses such as tour operators, with their cash flow needs.

- Example: Business B is a tour operator and is impacted by the decrease in visitor arrivals and needs to pay existing fixed costs. Business B can apply at one of GEDA’s partner financial institutions for a loan under the State Small Business Credit Initiative (SSBCI) with a 90-day deferred initial payment upon approval.

3-Month Economic Relief Dependent on

Number of Loans

6

5

6

Page 4: TEAM Guam Plan - TownNews€¦ · 3/9/2020 2 Overview: TEAM Guam Plan • Five-Point Plan to Assist Individuals, Families, and Businesses of Guam 1. Postpone Payment of 40% of BPT

3/9/2020

4

REBATEPercentage of Airline Fees

4. Rebate a Percentage of Airline Landing and Apron Fees to assist air carriers with fixed costs during this difficult economic time. The Leon Guerrero-Tenorio Administration is working with the GIAA and its Board of Directors to approve a percentage Rebate on Landing and Apron Fees.

3-Month Economic Relief

Up To

$900K*

7

*Amount is from GIAA revenues

REQUESTUtilities Payment Plans

5. Request Utilities to consider offering payment plans for utility bills for residential customers on Guam that candemonstrate financial hardship due toCOVID-19.

- Example: Residential Customer A has a power bill totaling $250. The Utilities may be able to offer a payment plan over a 90-day time period if Residential Customer A can demonstrate financial such financial hardship.

3-Month Economic

Relief

TBD

8

7

8

Page 5: TEAM Guam Plan - TownNews€¦ · 3/9/2020 2 Overview: TEAM Guam Plan • Five-Point Plan to Assist Individuals, Families, and Businesses of Guam 1. Postpone Payment of 40% of BPT

3/9/2020

5

Government Austerity Measures

The TEAM Guam Plan also includes the close monitoringof the government’s finances to ensure that the level ofpublic health, safety, education, and other necessaryservices are provided to the people of Guam.

Through Fiscal Discipline, the Leon Guerrero-TenorioAdministration will continue to monitor and re-assess itsongoing austerity initiatives to assist in addressing theimpact of COVID-19 on visitor arrivals, revenuecollections, and the government’s overall fiscal health. Arecent review of budgetary status show a potential of up to$10 million that can be directed towards this goal.

9

Temporary Economic Assistance and Mitigation (TEAM)Guam Plan

10

QUESTIONS?

9

10