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P.O. Box 2950 HagPatha, Guam 96932 TEL: (671) 472-8931 FAX: (671) 477-4826 E W L : [email protected]
I Felix Perez Carnacho Gmwnor
Kaleo Scott Moylan L i m m t G o v m
The Honorable Mark Forbes Speaker Mina' Bente Ocho Na Liheslaturan GuHhan 155 Hessler Street Hagitfia, Guam 969 10
Dear Mr. Speaker:
Transmitted herewith is Bill No. 13 (LS), "AN ACT TO ADD A NEW CHAPTER 43 TO TITLE 11 OF THE GUAM CODE ANNOTATED, TO CREATE TAX REBATES FOR EDUCATOR EXPENSES; THIS ACT SHALL BE KNOWN AS "THE EDUCATOR APPRECIATION ACT OF 2005"," which I signed into law on March 17. 2005 as Public Law 28-20.
Sinseru yan MagHhet,
qLu&-..- I Maga'liihen Guiihan Governor of Guam
Attachment: copy attached of signed bill
cc: The Honorable Eddie Baza Calvo Senator and Legislative Secretary
Office of the Speaker MARK FORBES
Date: 3-3IeL T i m S f z ~ ~ Rec'd &:_ Print Na;meiG
MINA? BENTE OCHO NA LIHESLATURAN GUAHAN TWENTY-EIGHTH GUAM LEGISLATURE
155 Hessler Place, HagAtiia, Guam 96910
March 9,2005
The Honorable Felix P. Camacho I Maga'lahen Gudkan Ufsinan I Maga'laki Hagdttia, Guam 96910
Dear Maga'lahi Camacho:
Transmitted herewith are Bill Nos. 27(EC), 33(EC), 49(EC); and Substitute Bill Nos. 13(LS) and 18(LS) which were passed by I Mina'Bente Ocho Na Likeslaturan Guihan on March 8,2005.
Sincerely,
EDWARD J.B. CALVO Senator and Secretary of the Legislature
Enclosures (5)
6 4 d ? t l a f ~ r t t X z 4 t ~ r t . t - E J.B. Calvo ,_c lcl; 1 i'\i<Y c )k+ 1 1 12: LEGISLATURE
A< k N O W l d t U C ~ L , M k N ' T RECEIPT
FiaL- w / licv'd by: I I Print Name & Initial I
Director 472-3409 Far: 172-35 l i i Chief Fiscal Officer 472-348" Personnel 472-3520 Protocol 172-3499 Archives 472-3465 * Clerk DfLegiS13~1,re 47 ?.?'1*1
I MINA'BENTE OCHO NA LIHESLATURAN GUAHAN 2005 (FIRST) Regular Session
CERTIFICATION OF PASSAGE OF AN ACT TO IMAGA'LAHEN GU&-XAN
Th~s is to certify that Substitute Bill No. 13 (LS), "AN ACT TO ADD A NEW CHAPTER 43 TO TITLE 11 OF THE GUAM CODE ANNOTATED, TO CREATE TAX REBATES FOR EDUCATOR EXPENSES; THIS ACT SHALL BE KNOWN AS 'THE EDUCATOR APPRECIATION ACT OF 2005' ," was on the 8" day of March, 2005, duly
,/ Speaker
Edward J.B. Calvo Senator and Secretary of the Legislature
This Act was received by 1 Maga'lahen Guihan this day of March, 2005,
at 7: 29 o'clock A.M. 1 -
APPROVED:
/'FELIX P. CAMACHO I Maga'lahen Gudhan
Date: 3//r/ps"
Public Law No. ?L ~ g f l a '
I MINA'BENTE OCHO NA LIHESLATURAN GUAHAN 2005 (FIRST) Regular Session
Bill No. 13 (LS) As substituted by the Committee on Finance, Taxation & Commerce and amended on the Floor.
Introduced by: R. Klitzkie L. F. Kasperbauer J. M.S. Brown Mark Forbes J. A. Lujan Ray Tenorio Edward J.B. Calvo A. R. Unpingco Wke Cruz F. B. Aguon, Jr. B. J.F. Cruz L. A. Leon Guerrero A. B. Palacios R. J. Respicio J. T. Won Pat
AN ACT TO ADD A NEW CHAPTER 43 TO TITLE 11 OF THE GUAM CODE ANNOTATED, TO CREATE TAX REBATES FOR EDUCATOR EXPENSES; THIS ACT SHALL BE KNOWN AS "THE EDUCATOR APPRECIATION ACT OF 2005".
1 BE IT ENACTED BY THE PEOPLE OF GUAM:
2 Section 1. Short Title. This Act may be cited as "The Educator
3 Appreciation Act of2005".
4 Section 2. Tax Rebates. A new Chapter 43, Title 11 of the Guam Code
5 Annotated is hereby added to read: 1
"CHAPTER 43.
The Educator Appreciation Act
TAX REBATES FOR EDUCATOR EXPENSES
54301. Statement of Legislative Purpose.
54302. Definitions.
54303. Tax Rebate for Educator Expenses.
54304. Procedure to Claim Rebated Taxes.
54305. Rebate Fund.
54306. Implementation by Tax Commissioner.
54307. Sunset Provision.
54308. Construction.
$4301. Statement of Legislative Purpose. Teachers traditionally
spend their own money on various supplies (e.g. bulletin board
materials, books, pencils, crayons and markers). Although these
expenses are deductible as unreirnbursed business expenses on a
teacher's income tax return, election of the standard deduction meant
that most teachers bore the entire cost of these generous expenditures.
The United States Congress recognized the plight of teachers and
effective tax year 2002 allowed a deduction of Two Hundred-Fifty
Dollars ($250.00) from the adjusted gross income (see line 23, Internal
Revenue Service ('IRS') Form 1040 for 2004) thereby allowing all
teachers and other educators to deduct qualified expenses even if the
educator did not itemize deductions.
While the Two Hundred-Fifty Dollars ($250.00) tax deduction may
be sufficient for teachers in some areas, it is woefully inadequate for
many teachers teaching in the Guam Public School System. Because of
several years of chronic under-funding, public school educators have,
for several years, responded to the needs of their students by spending
their own money on what are denominated qualifed expenses in this Act.
Furthermore, educators in Guam's private schools are faced with the
same conditions, thereby finding it necessary to spend their own private
funds to provide supplies and materials cited as qualifed expenses in this
Act. Given the state of Guam's economy it is almost a certainty that
educators will continue to attempt to meet the needs of their students by
spending their own money. This Act allows educators to claim a tax
rebate to recover u p to Five Hundred Dollars ($500.00) of personal
expenditures over and above the Two Hundred-Fifty Dollar ($250.00)
deduction allowed by the Internal Revenue Code ('IRC').
This Act adopts much of the operative language of §62 of the
Internal Revenue Code ('IRC') thereby making the various instructions,
pamphlets and other papers issued by the Internal Revenue Service
('IRS') available for the interpretation of this Act, e.g. expenses
deductible at line 23 of Internal Revenue Service ('IRS') Form 1040 are
subject to rebate under this Act to the extent they exceed the Two
Hundred-Fifty Dollar ($250.00) deduction.
GEDA Qualifying Certificates have been issued to businesses,
allowing them tax rebates for nearly forty (40) years and have fostered
much economic development. This Act extends the functional
equivalent of the Qualifying Certificate (the Educator's Qualzfijing
Certlficafe or 'EQC') and tax rebate, on a much smaller scale, to teachers.
Wlule this rebate is insufficient to make up for the economic hardship
suffered by teachers, it is one way for this community to show its
appreciation to its educators.
54302. Definitions. The definitions set forth herein shall govern
the construction and interpretation of this Chapter;
(a) 'Eligible educator' means a kindergarten through grade 12 in
the Guam Public School System and in Guam's private
schools:
1) Teacher;
2) Instructor;
3) Counselor;
4) Principal; or
5) Aide.
(b) 'Qualifed expenses' means unreimbursed expenses exceeding
Two Hundred-Flfty Dollars ($250.00), less any unreimbursed
employee expenses upon which a deduction from adjusted
gross income is based that an elipble educator paid or
incurred for books, supplies, computer equipment
(including related software and services), other equipment,
and supplementary materials that the educator used in his
or her classroom. For courses in health or physical
education, expenses for supplies are qualified expenses only
if they are related to athletics.
(c) 'Educator's Qualihing Certificate (EQC)' means the declaration
of an eligible educator, made pursuant to 6 GCA $4308, of the
qualified expenses he or she incurred during a tax year.
54303. Tax Rebate for Educator Expenses. A rebate in an
amount equal to the qualified expenses incurred, but not to exceed Five
Hundred Dollars ($500.00) of personal income tax paid by resident
individual taxpayers, who are eligible educators, to the government of
Guam is hereby established and declared.
54304. Procedure to Claim Rebated Taxes. When a tax return is
accompanied by an EQC(s), the amount of tax due prior to the rebate
shall be deposited with the government of Guam at the time of filing the
income tax return. Alternatively, if no payment is due at the time the
tax return is filed, the Tax Commissioner of Guam shall credit the
amount of the EQC to the Rebate Fund from taxes paid by the taxpayer.
Absent a finding by the Tax Commissioner that the rebate is not
payable, the rebate shall be withdrawn from the deposit and returned to
the taxpayer(s) within one hundred and eighty (180) days of the deposit
without interest.
54305. Rebate Fund. Deposits made pursuant to 54304 shall be
covered over and deposited into the fund created by 12 GCA s58138.
94306. Implementation by Tax Commissioner. The Tax
Commissioner of Guam shall, no later than ninety (90) days after the
effective date hereof, develop necessary procedures to implement this
Chapter, and to that end shall:
(a) issue such rules and regulations as he or she may deem
necessary to implement this Chapter;
(b) promulgate such forms and publications as are necessary to
assist eligible taxpayers to take advantage of this Chapter;
and
(c) develop a procedure to allow the set off of an unpaid tax
rebate from a prior year against a current year's tax liability.
54307. Sunset Provision. This Act shall be ineffective in the tax
year following the receipt by the Director of Revenue and Taxation of a
certificate of the Superintendent of Education that it is no longer
necessary for eligible educators to spend their own money on qualifiPd
expenses, as those terms are defined in 94302, in order to provide an
adequate public education.
94308. Construction. Subsections 4302(a) and (b) of this Chapter
are substantially similar to §62(a)(2)(D) of the Internal Revenue Code (26
USC §62(a)(2)(D)] and should be construed consistently therewith except
where manifestly inapplicable."
Section 3. Effective Dates. This Act is effective upon adoption
provided that the tax rebate created by 94303 shall be effective for tax liability
arising in 2005.
/ M/NA' BENT€ OCHO NA L/HESLATURAN GUAHAN 2005 (FIRST) Regular Session
VOTING SHEET Date: </&5
Resolution No. Question:
TOTAL
CERTIFIED TRUE AND CORRECT: * 3 Passes = No vote
EA = Excused Absence Clerk of the Legislature
4 ' 1 . , .
. . MINA'BENTE O C H O N A L I I I E S I 3 A ' T U R ~ 1 N G U X H A N . r 5 ~ i ~ ~ ' ~ ' ~ - ~ ~ ~ ; ~ ~ ~ ~ ~ c;'cin~ LLG rsl.,%+rr; ~ t : ;
S e n a t o r Edward J . B . Ca'tvo S E C R E T A K Y O F T H E L I E G I S L A ' ~ U R E
Chairman COMMIITEE ON FINXiWCE, 'I'iPX4TiON & COMMERCE
OFFICE OF FINANCE IWD BUIIGEI'
E-Mail ar!drcss: ~ J ~ ~ ~ p r c ~ ~ \ l ! \ o ~ i m I ~ ~ ) t ,i!.<i.i&.js~ T ~ ~ ~ X X X : (071) 475-@&1~
155 Hcslci Street IingStiia. C;uam y691o Farsimilc: (6-1) l-;,-tWhs - - - -- - -- . . -. . - A ~ . . .
" --- - C''t -- 3
Thc f i t )norable Mark Forbes Speahcr ,\,liritr L; '~~r t rc ' Ocizo ita I,iltc.~lurrirarr (;uB170tz 155 Hebler Place i-lripitna. Guam 069 I 0
fIt.;fi~ I I C ~ C I I ' , Mr. Spcakcr:
The Comntittee on Finance, Taxation, and Commerce, to which Bill No. 13 fLS). A-1V ACT TO KfiAC'I' A MW 11 GCA CHAPTER 43 TO CREATE TAX REBATES FOR EDUCATC)K EXPENSES AND ENACT THE EDUCATOR APPRECIATION ACT OF 2005. was referred, wishes to report its filldirlgs and recoxnrncndations TO PASS Bill No. 13 (LS), as sub.stinrted by f!zf C'otnmirfeu.
'T'hc voting rccord for Bill No. 12 (i,S) i~ as follows:
TO PASS
NOT 1'0 PASS
TO REPORT OUT
ABSTAIN -
TO I'EACE IN INACTIVE FILE ,@'
Copies of the Committee Report and other pertinent documents are attached. 'i'hank you fc?r yotlr zt:e~itic-)n 111
diis niailer.
MINA'BESTE O C H O NL4 LIE4ESLATURAM G I J A H A N I b l k Y T Y - E I G H T H GUXA; LEGISLATURE
S e a a t o r Edward J . B . Ca lvo S k , C R E T A K Y O F ; T H E I J E @ I S L , A T l ! K E
Chairtn,in &'OMblITiTEE ON I:lNN4NCE. 'I'AUTION & CUM RI EKCE
February 14. 2005
Tc?: C'ornruiitee Directors
kldn;. Chairma;:. Cc,mmi\ier. on Financc, Taxaiion. and Cornmercz
Sub~cut: Committee report 011 Bill 13 (LS) as. sub.\rlturcd by the Cornmitter MI Fiizutico, 7usurion, unli ( ( ~ ~ ~ ~ i ~ i c ~ . ~ <
This mrmurani lur it; accompanied by thc following:
1 . Contrnittcc voting shcet 3 -. I'u biic Hearing sign-in sheet 1 . 7 . Nctticc n?' Public Fiearirlg 4. Trstimtinics subtnitfed
I ' 1 c . i ~ iakr. ihc appropriate ~iciion Oil !he attached voting L. sheel. Your attcntjorr aiid coopct-ation it1 this matter is c r t d t i y appreciartd. Sl~oulti [ h e x be any questions regarding this matter, plcasc feel free to alntact my olfiice at 4?5-$SO I .
COMMITTEE ON FINANCE, TAXATION AND COMMERCE & THE OFFICE OF FINANCE
AND BUDGET I M I N A 'BEIVTE OCEIO NA L I H E S L A T U R . 4 3 GU.4H/1:V
155 HESLER STREET, H A G . & T ~ A , GUAM 96910
BILL 13 (LS) AN ACT TO ENACT A NEW 1 1 GCA CH. 43 TO CREATE TAX REBATES FOR EDLTATOR EXPENSES .AND ENIQCT THE EDUCATOR APPRECIATION ACT OF 2005
VOTING SHEET
TO \OTTO TO RCPORT ABST.Ai\ 1h.AC.l I \ k SlC;.\ATL:HE 1'455 P4SS O I T O F hILC
CDi1MJTTFF
Edwsrtl J . H. Calvo. Chairman
- - - Laurence F. Kaspcrbauer, Ph.21.. Vice Chair
Fra~ ih B. Aguon Jr.. l iember
Jrsse 1. Lujan. 3lember
-- - -- - idulpho B. Palac~os, Sr,. klembcr .- -
-L-
l- 14 ' 1 7- - - - Rat lcnorro, \Iemher
, G \ I
i/
MINA'BENTE OCHO NA LIHESLATURAN GUAHAN 2005 (FIRST) REGULAR SESSION
Bill No. 13 (LS)
Introduced by: R. Klitzkie L. F. Kasperbauer J.M.S. Brown Mark Forbes , J.A. Lujan Ray Tenorio E.B. Calvo A.R. Unpingco M. Cruz
AN ACT TO ENACT A NEW 11 GCA CH. 43 TO CREATE TAX REBATES FOR EDUCATOR EXPENSES AND ENACT THE EDUCATOR APPRECIATION ACT OF 2005.
BE IT ENACTED BY THE PEOPLE OF GUAM:
Section 1. Short title. This act may be cited as The Educator Appreciation Act of
2005.
Section 2. Tax rebates. A new 11 GCA Chapter 43 of added to read:
"Chapter 43
TAX REBATES FOR EDUCATOR EXPENSES
$4301. STATEMENT OF LEGISLATIVE PURPOSE. Teachers traditionally
spend there own money on various supplies e.g. bulletin board materials, books,
pencils, crayons and markers. Although these expenses are deductible as
unreimbursed business expenses on a teacl~er's irlcome tax return, election of the
standard deduction meant that most teachers bore the entire cost of these generous
expenditures. The United States Congress recognized the plight of teachers and
effective tax year 2002 allowed a deduction of two hundred-fifty ($250) from adjusted
gross income (see line 23, form 1030 for 2004) thereby allowing all teachers and other
16 educators to deduct qualified expenses even if the educator did not itemize deductions.
1 While the two hundred-fifty ($250) tax deduction may be sufficient for teachers in
2 some areas it is woefully inadequate for many teachers teaching in the Guam Public
3 School System. Because of several years of chronic under funding public schools
4 educators have for several years responded to the needs of their students by spending
5 their own money on what are denominated quulified experzses in this act. Given the
6 state of Guam's economy it is almost a certainty that educators will contiilue to
7 attempt to meet the needs of their students by spending their own money. This act
8 allows educators to claim a tax rebate to recover up to five hundred dollars ($500) of
9 personal expenditures over and above the two hundred-fifty dollar ($250) deduction
10 allowed by the Internal Revenue Code:
11
12 This act adopts much of the operative language of $62 of the Internal Revenue Code
13 (IRC) thereby making the various instructions, pamphlets and other papers issued by
14 the IRS available for the interpretation of this act, e.g. expenses deductible at line 23
15 of IRS form 1040 are subject to rebate under this act to the extent they exceed the two
16 hundred-fifty dollar ($250) deduction.
17
18 GEDA Qualifying Certificates have been issued to businesses allowing the~n tax
19 rebates for nearly forty (40) years and have fostered much economic development.
20 This act extends the functional equivalent of the Qualifying Certificate (The
2 1 Educulor 's Qzwlfying C'crtificule or EQC) and tax rebate, on a much smaller scale, to
22 teachers. While this rebate is insufficient to make up for the economic hardship
23 suffered by teachers, i t is one way for this community to show its appreciation to its
24 educators.
25 $4302. Definitions. The definitions set forth herein shall govern the construction and
26 interpretation of this chapter;
27 , (a) Eligible educator- means a kindergarten through grade 12:
28 I ) Teacher
29 2) Instructor
30 3) Counselor
3 1 4) Principal, or
5) Aide.
(b) Quulified expetzses means unreimbursed expenses exceeding $250 an eli&ble
educator paid or incurred for books, supplies, computer equipment (including
related software and services), other equipment, and supplementary materials that
the educator used in his or her classroom. For courses in health or physical
education, expenses for supplies are qualified expenses only if they are related to 1
athletics.
(c) Edzica/or.'.r yzrulifiirzg certificate (EQC) means the declaration of an eligible
educatoi; made pursuant to 6 GCA 54308, of the quulified expenses he or she
incurred during a tax year.
$4303. Tax Rebate for Educator Expenses. A rebate in an amount equal to the
qualified expenses incurred, but not to exceed five hundred($500), of personal income a
tax paid by resident individual taxpayers, who are eligible educators, to the
government of Guam is hereby established and declared.
$4304. Procedure to claim rebated taxes. When a tax return is accompanied by (an)
EQC(s) the amount of tax due prior to the rebate shall be deposited with the
government of Guam at the time of filing the income tax return. Alternatively, if no
payment is due at the time the tax return is filed, the Tax Commissioner shall credit
the amount of the EQC to the Rebate Fund from taxes paid by the taxpayer. Absent a
finding by the Tax Commissioner of Guam that the rebate is not payable, the rebate
shall be withdrawn from the deposit and returned to the taxpayer(s) within one
hundred and eighty (180) days of the deposit without interest.
$4305. Rebate Fund. Deposits made pursuant to $4305 shall be covered over and
deposited into the fund created by 12 GCA $58138.
$4306. Implementation by Tax Commissioner. The Tax Commissioner of Guam
shall no later than thirty (30) days after the effective date hereof, develop necessary
procedures to implement this chapter and to that end shall:
(a) issue such rules and regulations as he may deem necessary to implement this
chapter.
(b) promulgate such forms and publications as are necessary to assist eligible
taxpayers to take advantage of this chapter.
(c) develop a procedure to allow the set off of an unpaid tax rebate from a prior year
against a current year's tax liability.
$4307. Sunset Provision. This act shall be ineffective in the tax year following the
receipt by the Director of Revenue and Taxation of the certificate of the
Superintendent of Education that it is no longer necessary for eligible educators to
spend there own money on quulified expenses, as those terms are defined in $4302, in
order to provide an adequate public education.
$4308. Construction. Subsections 4302(a) and (b) of this chapter are substantially
similar to §62(a)(2)(D) of the Internal Revenue Code [26 USC §62(a)(2)(D)] and
should be construed consistently therewith except where manifestly inapplicable.
$43409. Effective dates. This act is effective upon adoption provided that the tax
rebate created by $4303 shall be effective for tax liability arising in 2005."
MINA'BENTE OCHO NA LIHESLATURAN GU- 2005 (FIRST) Regular Session
Bill No. 13 (LS)
Introduced by: As Substituted by the Committee on
Finance, Taxation & Commercc
R. Klitzkie L. F. Kasperbauer J.M.S. Brown, C
Mark Forbes J.A. Lujan Ray Tenorio E.B. Calvo A.R. Unpingco M. Cruz
AN ACT TO ENACT A NEW 11 GCA CH. 43 TO CREATE TAX REBATES FOR EDUCATOR EXPENSES AND ENACT THE EDUCATOR APPRECIATION ACT OF 2005.
BE IT ENACTED BY THE PEOPLE OF GUAM:
Section 1. Short Title. This act may be cited as "The Educator
Appreciation Act of 2005".
Section 2. Tax rebates. A new 11 GCA Chapter 43 ef added to read:
The Eclucator Appreciation Act TAX REBATES FOR EDUCATOR EXPENSES
$4301. STATEMENT OF LEGISLATIVE PURPOSE. Teachers
traditionally spend there own money on various supplies (Le.g. bulletin board
31 materials, books, pencils, crayons and markers). Although these expenses are
deductible as unreiinbursed business expenses on a teacher's income tax return,
election of the standard deduction meant that most teachers bore the entire cost
of these generous expenditures. The United States Congress recognized the
plight of teachers and effective tax year 2002, allowed a deduction of two
hundred-fifty dollars ($250) from the adjusted gross income (see line 23, IRS Form 1040 for 2004) thereby allowing all teachers and other educators to deduct
qualified expenses even if the educator did not itemize deductions.
While the two hundred-fifty dollar ($250) tax deduction may be sufficient
for teachers in some areas, it is woefully inadequate for many teachers teaching
in the Guam Public School System. Because of several years of chronic&
under funding public schools, educators have for several years responded to the
needs of their students by spending their own money on what are denominated
qualified expenses in this act. Given the state of Guam's economy, it is almost a
certainty that educators will continue to attempt to meet the needs of their
students by spending their own money. This act allows educators to claim a tax
rebate to recover up to five hundred dollars ($500) of personal expenditures over
and above the two hundred-fifty dollar ($250) deduction allowed by the Internal
Revenue Code.
This act adopts much of the operative language of $62 of the Internal
Revenue Code (IRC) thereby making the various instructions, pamphlets and
other papers issued by the IRS available for the interpretation of this act, e.g.
expenses deductible at line 23 of IRS form 1040 are subject to rebate under this
act to the extent they exceed the two hundred-fifty dollar ($250) deduction.
GEDA Qualifying Certificates have been issued to businesses allowing
them tax rebates for nearly forty (40) years and have fostered much economic
development. This act extends the functional equivalent of the Qualifying
Certificate (The educator.'^ Quallfiing Cert~ficate or EQC) and tax rebate, on a
much smaller scale, to teachers. While this rebate is insufficient to make up for
the economic hardship suffered by teachers, it is one way for this community to
show its appreciation to its educators.
$4302. Definitions. The definitions set forth herein shall govern the
construction and interpretation of this chapter;
(a) Eligible educator means a kindergarten through grade 12:
I ) Teacher
2) Instructor
3) Counselor
4) Principal, or
5) Aide.
(b)Qualfied expenses means unreimbursed expenses exceeding two
hundred fifty dollars [$250) less any unreimbursed employee expenses
upon which a deduction from adjusted g;ross income is based that an
eligible educator paid or incurred for books, supplies, computer
equipment (including related software and services), other equipment,
and supplementary materials that the educator used in his or her
classroom. For courses in health or physical education, expenses for
supplies are qualified expenses only if they are related to athletics.
(c) Edzrcator's qualzfiing ceutzficate (EQC) means the declaration of an
eligible educator, made pursuant to 6 GCA $4308, of the qualified
expenses he or she incurred during a tax year.
$4303. Tax Rebate for Educator Expenses. A rebate in an amount equal
to the qualified expenses incurred, b u ~ not to exceed five hundred dollars ($500),
of personal income tax paid by resident individual taxpayers, who are eligible
educators, to the government of Guam is hereby established and declared.
$4304. Procedure to claim rebated taxes. When a tax return is
accompanied by (an) EQC(s) the amount of tax due prior to the rebate shall be
deposited with the government of Guam at the time of filing the income tax
return. Alternatively, if no payment is due at the time the tax return is filed, the
Tax Commissioner shall credit the amount of the EQC to the Rebate Fund from
taxes paid by the taxpayer. Absent a finding by the Tax Commissioner of
Guam that the rebate is not payable, the rebate shall be withdrawn from the
deposit and returned to the taxpayer(s) within one hundred and eighty (180) days
of the deposit without interest.
$4305. Rebate Fund. Deposits made pursuant to $4305 shall be covered
over and deposited into the fund created by 12 GCA $58138.
$4306. Implementation by Tax Commissioner. The Tax
Commissioner of Guam shall no later than thirty (30) days after the effective
date hereof, develop necessary procedures to implement this chapter and to that
end shall:
(a)Issue such rules and regulations as he may deem necessary to
implement this chapter.
(b)promulgate such forms and publications as are necessary to assist
eligible taxpayers to take advantage of this chapter.
(c) develop a procedure to allow the set off of an unpaid tax rebate from a
prior year against a current year's tax liability.
$4307. Sunset Provision. This act shall be ineffective in the tax year
following the receipt by the Director of Revenue and Taxation of the certificate
of the Superintendent of Education that it is no longer necessary for eligible
educators to spend there own money on quulijied expenses, as those terms are
defined in $4302, in order to provide an adequate public education.
$4308. Construction. Subsections 4302(a) and (b) of this chapter are
substantially similar to §62(a)(2)(D) of the Internal Revenue Code 126 USC
§62(a)(2)(D)] and should be construed consistently therewith except where
manifestly inapplicable.
$43409. Effective dates. This act is effective upon adoption provided
that the tax rebate created by $4303 shall be effective for tax liability arising in
2005.
Waiver on Fiscal Note
i n accordsiice with $9105 of Title 2 GCA, 1 hereby certify that prompt
committee action on Bill Number 13 (LS) is necessary for the proper conduct
of legislative business. Therefore, 1 am waiving the requirement Cor a fiscal
note on Bill Number 13 (LS).
Edward J.B. Calvo Chairman Cornrnitlee on Finance, Taxatiorl and Commerce
I I. OVERVIEW
The Committee on Finance, Taxation and Commerce and the Office of Finance and Budget held a public hearing on Tuesday, January 25, 2005 at 930 AM at the Guam Legislature public hearing room in Hagatna, Guam. Notice of public hearing was disseminated throughout all local media via fax (see attached).
Senators present were: Senator Eddie Calvo, Chairman Vice Speaker Joanne Brown Speaker Mark Forbes Senator Robert Klitzkie Senator Larry Kasperbauer Senator Lou Leon Guerrero Senator Jesse Lujan Senator Adolpho Palacios Senator Antonio Unpingco Senator Judith Won Pat
11. SUMMARY OF TESTIMONY
The following bill was heard at the public hearing in which oral and/or written testimony were provided:
BILL 13 (LS) AN ACT TO ENACT A NEW 11 GCA CH. 43 TO CREATE TAX REBATES FOR EDUCATOR EXPENSES AND ENACT THE EDUCATOR APPRECIATlON ACT OF 2005.
Senator Robert Klitzkie's Remarks:
Senator Klitzkie described Bill 13 as a display of gratitude towards teachers working in local schools. He referenced the Internal Revenue Code provision of a $250 deduction for educators, but stated that a $250 deduction is inadequate for Guam teachers. He explained the need to supplement the deduction with a $500 rebate to compensate teachers for spending their own money on school supplies. Klitzkie explained Bill 13 as having a "salutary purpose of reimbursing teachers 'some' of the money out their own pockets."
Oral testimony only for Bill 13 public hearing was provided by the following individuals:
1. Senator Antonio Unpingco, Spouse of a Teacher & Local Resident
Senator Antonio Unpingco presented oral testimony in favor of Bill 13. As a husband of a local teacher, he has witnessed the use of personal funds to purchase supplies for the classroom. He quoted expenditures of up to $4,000 for school supplies by his wife. He commented that Bill 13 is "good as a matter of appreciation."
I
2. Paul Pablo, Tax Enforcement Administrator, Dept. of Revenue and Taxation
Mr. Pablo presented oral testimony in opposition of Bill 13. He expressed his understanding of the need to compensate teachers, but voiced reservations on the opportunity for "double benefits" presented by Bill 13. He referenced the Schedule A form that can be filed with a 1040, allowing educators to itemize unreimbursed employee expenses when the expenses exceed 2% of adjusted gross income. Pablo stated that this is "not the right time to '
do i t with the state of rev and tax."
Written testimony only for Bill 13 public hearing was provided by the following individual:
1. Artemio B. Ilagan, Director, Department of Revenue and Taxation
Mr. Ilagan submitted written testimony in opposition of Bill 13. He reported that the Department of Revenue and Taxation (DRT) agrees with the intent of the bill, but recommends postponement due to the financial status of the government. He stated concerns on the double benefit educators may receive if they deduct unreimbursed employee expenses and clainl the rebate. Ilagan also said that additional manpower is needed to analyze qualified expenses. He said the DRT will work with the law in the event Bill 13 is enacted.
111. FINDINGS AND RECOMMENDATION
Chronic under-funding of public schools has led to an increase in teacher spending on school supplies over the years. Classrooms have been left unequipped with books, pencils, crayons, paper, glue. scissors. and erasers. The only way for educators to address the problem is to spend their own money to ensure their classrooms are properly equipped.
In 2002 the United States Congress recognized the necessity for teachers to spend there own money on their jobs and implemented a two-hundred-fifty ($250) deduction from income for educators. The enactment of Bill 13 would allow teachers to receive an additional rebate of $500 for expenses over and above the $250 deduction. While the $250 deduction may be adequate for teachers in some areas, the current state of the Department of Education (DOE) shows that this amount will not suffice for public school teachers on Guam.
Bill 13 addresses this issue and attempts to compensate local teachers by supplementing the $250 amount with a rebate of $500. The requirement for an Educator's Qualifying Certificate (EQC) is outlined to ensure only eligible educators are rebated qualified expenses, as defined in $4302. The bill "piggy backs" on the $250 provision already enacted in the Internal Revenue Service Code (IRC), in particular, $62. Replicating materials used by the IRS would provide ease of administration for DRT in granting the $500 rebate to local teachers.
Additionally, the bill creates a sunset provision in $4307 to discontinue the increased benefit after the Superintendent of DOE certifies to the Director of Revenue and Taxation that teachers no longer need to spend their own money to provide an adequate education. The goal is to reimburse some of the money to educators through the, rebate until our government can afford to provide adequate resources to our students.
Public testimony on Bill 13 was very supportive of the need to compensate educators, though some individuals presented concerns for the opportunity of a "double benefit." Line 23 (educator expenses) on form 1040 allows educators to take advantage of the $250 deduction. In addition, line 20 on the Schedule A form provides the option for itemizing unreimbursed employee expenses not already covered, which exceed 2% of the amount on line 37 of the 1040. The simultaneous use of the Schedule A itemized deductions and the $500 rebate presented by Bill 13 could result in a "double benefit" for educators.
In considering the testimony, the committee finds that to address the potential of a "double benefit" an additional element is needed in the definitional section of Bill 13. Therefore, the committee recommends that subsection (b) of $4302 be amended to read:
$4302. Definitions. The definitions set forth herein shall govern the construction and interpretation of this chapter;
(b) Quulifird expenses means unreimbursed expenses exceeding $250 less any unreimbursed employee expenses upon which a deduction from adiusted gross income is based that an eligible educator paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that the educator used in his or her classroom. For courses in health or physical education. expenses for supplies are qualified expenses only if they are related to athletics.
The committee recommends that a substitute bill be prepared incorporating the findings and recommendations of the committee. The substitute bill is submitted herewith.
Accordingly, the Committee on Finance, Taxation and Commerce and the Office of Finance and Budget does hereby submit it's findings and recommendations to I Mirw ' Belzle
Ocho Nu Lilzesluturan Guatzurz TO PASS BILL 13 (LS) AN ACT TO ENACTA NEW I 1 GCA CH. 43 TO CREATE TAX REBATES FOR EDUCATOR EXPENSES AND ENACT THE ED UCA TOR A PPRECIA TION ACT OF 2005.
Bill Referrals Continuous
Date Introduced
0 I '0.3 05
4iLSi / I. F. Education i 0 1 iO305 j Knsperbauer
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IV. PUBLIC HEAFUNG AGENDA
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Public Hearing: Notice 5 GCA $8108 (Special)
Edward J.B. Calvo, Chairman Coniruirree on Finance, Taxation and Commerce I Liherlnturan Guahdnk Public Hearing Room {/id
Tuesday, J a n u q 25,2005,9:30a.m.
The Committee on Finance, Taxation and Commerce will hold a public hearing on Tuesday, January 25. 2006 9:30 a.m., at ILiheslaturon Gudllan 's Public Hearing Room and solicits any written or verbal testimonies from the Public on the following measures:
1. Bill No. 4 (LS) - "An Act To Appropriate The Sum Of Two Miilion Dollars (%2.000,000) From The Education Facilities Fund To The Drpartn~ent Of Education For The Repair Of Air Conditioillng In Public School Facilities."
2. Bill No. 8 (LS) - "An Act To Amend To $58104 Of Title 12, Guam Code Annotated Relative To Adding Investment Bak ing And Securities And Colnmodities Trading To Tile List Of Eligible ActivitiesFor Qualifying Ccnificatcs."
3. Bill No. 1 l (LS) -"An Act To Add A New lrem (28) & (29) To kern (K) Of 526203 Of Title 11, Guam Code Annotated Relative To Exempting The Wholesale Of Telecommunication Services And Off-Island Sales From Gross Receipts Taxcs."
1. Bill No. 12 (LS) -"An Act To De-appropriate $135,360 From The Sums Appropriated To The Legislature And To Reappropriatc Said Sum To The Public School Library Resources Fund."
5. Bill No. 13 (LS) - '.An Act To Enact A New 1 1 GCA Ch.43 TO Create Tax Rebates For Educator Expenses And Enact The Educator Appreciat~on Act Of 2005."
6. Bill No. 19 (LS)-'.An Act To AddNeit ltem (36). Subsection K , Section 26203.Anicle 2, Chapter26,Division 2, Title I I, Guam Code Annotated. For The Purpose F Exempting The Application Of The Gross Receipt Tax From The Sale Of Medicine. hledicnl Supply And Medical Equtpment."
7. Bill No. 21 (LS) - '.An Act To Reprogram The Balance Of The Terrirorial Highway Fund And The Guam Construction Fund For The Purpose Of Fund~ng Various Cap~tal Improvement Projects."
8. Bill No. 22 (EC) -'.An Act To Add To A New ltem (5) To Subsection 26202 Of Aniclc 2. Chapter 26, Division 2,11 GCA And A Kew Subsection (1) To Section 28106 Of Article 2, Chapter 28, I 1 GCA, For The Purpose Of Evenipting Thc Sale Of Medicme, Pharmaceuticals, Medical Equipment And Medical Supply, As Well As The Provision Of Medical Sew~ces From The Application Of The Gross Recelpts Tax And To Remove The Application Of The Use Tau From The Importation Of Med~cal Equipment."
Individuals wanting to submit written restirnony or requiring special ADA accommodations or services should contact the Office of Senator Edtvard J.B. Calvo at 475-8801, send an e-mail at senatorcalvo6?hotsheet.cgj or fax at 475-8805.
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5 GC.4 58108 (Special)
Edward J.B. Calvo, Cha~ruian cl qE t-k~e-
Cornmitree on Finance, Tarviion and Combrrce ~ ' G T C E I I lheslaturan Gunhdn 's Publzc Heur~ng Room
Tuesday, January 25, 2005,9:30a.m.
]-he Committee on Finance, Taxation and Commerce will hold a public hearing on Tuesday, Janua1-y 2 j, 2005. 0:30 a.m., at ILihesiuturnn Gudhan's Public Hearing Room andsolicits any written or verbal testimonies fi.0111 the Public on the following measures:
1. Bill 5 0 . 4 (IS) - "An Act To Appropriate The Stun Of Two Million Dollars i$2,000,000) From The Education Facil~ties Fund To The Depament Of Education For The Repair Of Air Conditioning In Public School Fariliries "
2 . Rill No. 8 (LS) - "An Act To Amend To $58104 Of Title 12, Guam Code Annotated Relative To Adding Invesiment Rarkrng Asxi Securities And Commodities Trading To The List OfEligible Activities For QualifyLng Certificates."
3. Bill No. 11 (1,s) - "An Act To Add A New Item (28) & (29) To Item CK) Of $26203 Of Title 11, Gunm Code Annotared Rclative To E:.-:npting The Wholesale Of Telecommunication Services And 08-Island Sales From (.+ross Receipts Ttxes."
5 . Bill Yo. 13 (LS) - "An .Act To Ensct A New I 1 GCA Ch.43 To Create TaxRebates For Educator Expenses And l : n m 3'l.e Educatoi- Appreciat~on .4ct Of 2005."
6. Sill No. 19 (M)- "An Act To Add Hew Itern (36), Subsection K, Section 26203, Article 2, Chapter 26, Division 3. T ~ r i e 1 1, G\:am Code Annotated, For The Purpose Of Exempting The Application Of The Gross Receipt Tax FI on1 The Sale Of Medicine, Medical Supply And Medical Equipment."
7 . ali- ' . , , ..
t n d r i : ~ ~ put-suanr to $17.03.01 of the Standing Rules.
8 . R~ll So. 22 (ECj - "An Ar' To Add To A New Item (5) To Subsection 26202 OfArticle 2, Chapter 26, Division 2. i i (JCA iind .4 New Subsection (I) To Section 281 06 Of Article 2, Chapter 28: 11 GCA, For The Purpose Of Escrnp~ing The Sale Of Mcdiclne, Pharmaceuticals, Medical Equipment And Medical Supply, As Well As The Pro\iiion Of Medical Services From The Application Of The Gross Receipts Tax And To Rmove rile ,lppliialtol; Of The Use Tax From The Importation Of Medical Equipment."
Individuals xvant~ng to submit written testimony or requiring special ADA accommodations or services should contact thc Office of Senator Edward J.B. Calvo at 475-8801, send an e-mail at sei~atorcalvo@,hotsheet.c~~~~ or lir at 475-8SO;.
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\ I . WRITTEN TESTIMONY
DEPARTMENT OF Mu.*,. ' ,>a* :".
0,.* REVENUE AND TAXATION -p--*m-*e- a)rrhDra
GOVERNMENT OF GUAM Gubetnamenlon Gu&tran
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V 1 I . TAX FORMS AND INSTRUCTIONS
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ttolwl IRA liw :<NU. you may Ix .lhlc lo w l u sn I R h &ktuctnnt. Rtu \ ~ u . or bvur s p l w I f l i l i r t ~ 3 )ornl raunt. IIIU<I have h:d r r m d ~ncat lu 119 Jhi 1;n l-cr I R A pua- p-.c\. wmud tnknltc ~ ~ x l u J ~ a l s w ~ n ? and scpiu.btc. m~intcn.lacd p y n m l z ri'i.iv1.4 *ti llnz ! 1 4 <ukm%snt ~ I~ .~ l l< l kv e n r I,, !nu hs hlj:: 1 I. 2Ws . lhal ~ h t ~ i ~ r . t l l i c o l n - hurjms I<, j01tr lraJ!lloni>l 1K,\ iari ?#XU
P*s liac ~uslrl;cwl o i l ~.qi. 17 I t3 CIyutr !It,. ~~ln,unt. ii w:. of >w: 1 K h ~I-JULIIIIII I3uc wxd ilw fo4kwinp!r% W r r c yr.u lit: 11:
*,c U<>rLst*,-r. . If !;.u uerc 1st 70b.: w ' (~ Ik r 11 the rtld .>: 1cXY. )LW c ~ n l i o l ,&dl& t an! r r~n ln - htalon.; ma* :u y~w~r l :~md~l~~~nr l IKA t c g r
Zcxu <s I~CZ: thi.n~ 3% nondeii~vt~hl.- cooln- butions
Y L ? ~ c:tnu,x AYIIAY crm~nbt~ l rnn~ 10 a ROIII tK4. But 5uu *rra: he nhlc lo 111'. the wlin*nto>l Ingr c~mlrlhotnms crcJil See thz !nuruinins Ici I& 10 on 'i,.
15b on p g r 12 . Do m r IIXIIIL~ trurl-.?' ice6 \rcro h,llcd u.placly nnd puJ hy >,u :oilr iL\. T l k w fez- wn k iiCJ,~lPd wily .B .W
;vn~rzed d d u r l h ~ n on \c l ldu lc A.
IT W I~YJ ot )rwr IKA d c l h t ~ l a x n ur~ ltrw 25 plur any I~OII~CJICII~IC tOnVilldl-,ll
I<> ) m r tr<uvnLd IRA, a i l ~ ~ v o UII I $,or; Kt46 h idzb lhvn ycoi local l rd< l l l l l~& l IR.\ ~i,nmhuuotiy lrrr ?IYU c:.i. I4ih. 5W lor .pc<ldl r,,lcc.
H * .1&$11 1 <f rhe)t.u alrer r/:r ~ ( p I s r r o r nhrrhilur arm.t.w :I*: 0 )1w rcq<rircd I ~ W I I \la1 ~I..I~!~III,<~II., uklng ~ianrrnuol tro,>r
! 'wr tm11rx~m;I I # t 11 :ou d o m ~ l . tv!' Inn$ n l t r 11, pa) ,I .W'> .aWr:k~~ul rxr r\n thc mwrmr !hu J<uIrl hate h.m d i r h o l d PLY drbsl.. mrlrrdin# hlr nx ri,?rrrr rhr mi2lm:m~ rr~llurcd d1rlrriw11,a). uc Puh SVI.
Were Y o u Covered by a Retirement Plan? t i ),xu KPTC ~x~\r.srd h) a r c l l m c n l plur rq61.>li!-wd pco%?L-n. p i f i l - ~ b n n n p ~tnciud- Ing r ~ l i h j l . sn~icr~ly. SEP SIMlbl.t. ;tc r ..I uort or lilintuph ~ ~ l ( - m l ~ p h ~ ) m i ' n ~ . vour IWA d d u c i u ~ ~ r ma) t~ mlnr'd w 2111111- naurl. no1 ytn1 i.ln %il l mnhc il ' l i l l~lttiw?n- ~o:,n IRA c v r ~ it ) iw ~ . i n n d &duc1 Ihcm lii XI,> u w Ihr iw~,laccnrnnlo! iy~xi i IR:i ,~<nlrrhuu<m, i s i loi uxcd uulll 11 la pa'! I t '
L US,
The " K n ~ m n t c l ~ l p h ~ " hr,\ 10 f.oml \V-3. ho\ 1.7. should k c h r l ' d t I \,*\I n n c i ~ ~ v c n ' d h: rtp1.10 &I unri i! 11)11 u r n oa r.t.i~cd In ill: plan I'N .\I* :I;W
cotox4 h! .I plun il ?13u uerc r.ll-;:ll- p l v y ~ d .wJ h.d a 51 1'. 51f.11'LL. cn ~ ~ J I I - lid rcmcrxn l p l m
li :wtt ucte c,ntrclt hv . tn . t ! r~~n~~nt pluu and !nu file Corm 3 .5s . li55-i:L or LSl! ,,f >,,,, <~~l " , l r . <#l,pl<,>er-~~r\ \wI<,I .1,I.>p- clcro t r fw l i l \ (I\- Pub SVi! 10 ficurz ti*.
:imxtill. 11 an), <,I yottr iKA Ldwkn
\ l a r r l ~ d p t m w l ~ Illil~~ <t~la~.>Icl!. 11 )wr u s e nn4 C L I I ~ ~ I(> i t ccurenldll 1-la, hut >our sp-w !ia-. lor, 3. r n n u k l d co, . crcJ $ A pl:in unit%. >,w l ist4 ap:tn In,!ii !nm h p u r ior :dl of l W .
SCHEDULES A&B (Form I W
7 F'+:.:,ndl p?prr i l.tieC . - . . . . . . . . ................. 8 i ? t h 1.vea L1-2 l : ,p and iunowi b..
T.3.7~ L..
ffnte. ......... - ................. - .................................. F-,-. ,I' 12 P-in: r. i~ ~qi?~:ij\r +I, j r ] Form lC*??Y Sm PH.W A,.!
htrsctlbrmol~s .................................................. Oadacltoas ................................................................
21 la l r e p r r , ~ l ~ ~ , n !+, . . . . . . . . . . . 2: 8,311~ ~ ~ p ~ ~ i ? ~ - - ~ m r - . ; t ~ n i n t &?I, .d;~-K,s~ lx,v at; LE1
t.;p -%-..I a l r ~ t n d b ................... ... ................. ................................................................
. . . 27 A,.h l l~n+. ii tlifc*.~ah iZ
Line 20 Unreltnlxlrsed Etiiployee Expenses
Line 22 Other Expnses 1.rrli.l Ute 1b.f.d rtlt--ed )I'II p ~ i d 10, l'l'.&lii ~3 rn%Utscl f.is:tl~lc i~u.srue 2114 ts.yJge rr jr,*eil ~ > ~ p ~ u - l y kclJ It*r cJrnmp uldmr. Ihu~ 110 ,101 i l a l u ~ k j u r u ~ ~ a l csp3njn. I i k l Ihc n'lc riel .flt?HIlIl (*I r..r'll b " ~ un*r t w IIW d4i11~d II~W\ 1x31 l o ~111,. 22. 1'1 \+tw m.21 l r l r c >PAC 21I.Ch d ~ I d ~ l l l U 1 I ih;u nv; Ibc lvpc .u~d .~II~~LIII~ 3,t s:.sh CSfVUni. 1.1-1Icr VRO I.1.11 L-n l i i i l tc 21.
Other Mlsce lh l eous Deductions
Line 27 !)ldv U?: r'trcn-:% li\r;<l t vs l L.III h, ducicrl 8111 I l1i5 linc. I i\l Ib< I?(*: .rnJ .aaouclt $ , I c ~ d l L.S Irrc G tr Ub: \I+1II1d lille, ~wst r . l ~ n o 27. IF:^^^ ~lccd Iwr;.. < p r r . all.t,h r slahvncnt shn% 111g Itlr Irpr . t ~ r l .I~UI~IIIII <!I ~ 4 t h CtpcIlw. 1 61Ic.7 3 %11c htld sul rib* :7.
+ !;rnuhlin*. l n . ~ , ~ . I>III 3 ~11:: 1 3 . Ih,. c\ 1c1t1 *b~rmf i i~~c ~IIIIIII~~ lcl-* I~<I l~ t in l l I!-&!. rt,12 > I
I ' .~~n.r l l ! . J I I ~ lllL~l'l Ix!i..:\ 1n~i81ne-pca.~llt,i11(. vlupcrt) ir.~111 I \ *n l -lh%4, iiilcr 32 .#nf ;hb. ,A I-,xu -1'1:. 11ikr. I h l .
l~~~~,I~l.ll e.,L,k 1.4s < * I lI,:~~n,~ 1st ,< <(>L\ I r t l ,# t l c ~ ~ d ~ ~ ~ l .
r !nnmi,al~b h i w l ~xnriitsnt t x t 11 91~1.
:i2quird t l r . l ~ ~ ~ I ) i l * ~ h Y ' 5 . I*-*i.,. I v ~ h c l i t w L~,I I,,~I~III~~II .irnt>Iutt %
UII,&:I ., c1~11n td IP;III it- \ { ~ ' * I I . 5 % ~ [ 'Uh i 2 1 It51 d.'~Jil;.
r 1 LIIJUI UII~~.~~?~;:ICLI ~RVC.IIIICIII ill d
FII.,~, ST.
b n l ~ i & t ~ r ~ U ~:I.tlcd wttth C\~-IL->< 8 t l
>I di>abld ~YI:*QVI.
Total Itemized Deductions
Line 28 l i i e lhc s\ixk,Ix~l L ~I I pr;c I L. I I t 4 Li.;~tt.: llli ,UIIUIIIII t ~ ? mkh lilt< 2h 'd'tlx .IEI>.~UIII on I'OIIII ILIJII. 1i11c ??. i, ,-.\.I >lJ:,:+nt
c 5: I. 43-I ii nlkIr'a'd idin; X.~I.II.:I~ 8.
\'III. CORRESPOYDENCE
Aildi Punzaian
From: 'BPI:: Klitzk~e' ..bcb@bcbsc+fi::e.c~~~. To : 'An iiagan' ~.ri~~?i.n;:fimail .;~c'!.or g, Sent: 'r~dzj. Febriiary ' '. 213[15 7 27 AM Attach: Letrer ;o At: i lag i r~ dcc: Pill ' 3 ;LS: - Su4s:t:ir:e Eli; ccc Sublect: 6111 1:
])I.[. O L I I - c o n \ . c r s ~ t i ~ ~ ~ \.cst~'i.da>., I't71 L : . L I I I S ~ I ~ I ~ ~ ~ I I ~ >I I ~ t t c r ant1 s u l ~ s l i t ~ ; ~ ~ bill l.,,!i;:c.:-~:ing :\-our objcc~tjon to bill 13. I st~lxzit that t h ~ + sabstirutt5 biil mcc:!s y ~ ; i ~ ( : , I . ( . ~ ! i l i 1-1. ;-I [I():( :ltial doubic bc~:cfir (or taspkkycrs who dcdu~:t u11rcimba:-scd I J . ~ XI lil.?% < ~ ~ ' : l ~ ~ L > h ( ~ S ,
'\ {:.I:. I, i;cld 1;-si nlc.nL rrl ll ic. "11igg.i~,-1ck* aspcct oi ;!:c biil .i\-o;iIcl L C I : ~ uns\\i.:- c!iicstlt>ns A S : t : n-h7%- [!I(. ri~glbili~!. ios [hi' rc.bate is Limitcd.
""" E-mail attachment be lo^
Bob's Office The Office of Senator Robert Klitzkie
197 Hernan Cortes Ave.. Suite A-1 Hagatna, Guam 96910
(671) 472-9355 [email protected] www.bobsofice.org
Arteniio Ilagru~. Director Departmeilt of Revenue & Taxation P.O. Box 23607 G.M.F.. GU. 96921
RF.. BILL 13 (LS) AN .4CT TO EKACT A NEW 1 1 GCA CH. 43 TO CREATE TAX REBATES POK EDUCATOR EXPENSES AND ENACT THE EDUCATOR APPRECIATION ACT OF 2005
Deal Mr. Ilagan:
l'ha~lli you for being so responsive to Bill 13 for the public hearins held on January 25. 2005. In consideration of your testimony submitted to the Committee on Finance. Taxation and Commerce, I have decided that the definitional section of the bill must be amended. You highlighted concerns of the potential h r taxpayers to receive "double benefirs" by itc~nizing the excess (line 20. Schedule A Soim) over the $250 deduction (line 23. fomm 1040). \\-hilt: also qualifying for the SSOO rebate provided by Bill 13. To address this issue, set out bclu\+ is the underscored amendment to subsection (h) of g.1302:
$4302. Definitions. The definitions set forth herein shall govern the constnlction and interpretation of this chapter;
(b) C)uai?fified c x p c ~ ~ . ~ c s means unreinlburscd expenses exceeding S150 less anv unreirnb~uscd cmplo~ee expenses uDon which a deduction from adiustcd gross inconle is bascd that an eligible educator paid or incurred for books. supplies, computer equupmcnt (including related software and senices), other equipment. and supplementary materials that the educator uscd in his or her classroom. For courses in health or physical education. expenses for supplies are qualified expenses only if they arc related to athletics.
'4 substitute bill incorporating the ametldment has beell drafted and included in the draft conlrnittec report to be submitted to thc Chairman ofthe Coinmittee on Financc, Taxation. and Com~ncrcc.
I'd appreciate any additional comments you h v e on the bill
Sincerely. Senator Robcr~ Klltzkie 28' Guam Lcgislature
V.SIGN-IN SHEET
Committee on Finance, Taxation, & Commerce Office of Finance and Budget
Senator Edward J.B. Calvo, Chair~linn
TESTIMONY - SIGN IN SHEET Tai~uary 2.5, 2UU5 Public Hearing
HII,L NlrhIRER 12 (L,S) " .1N ACT TO ENACT A NEW 1 1 CiC:1 CH.43 T'C) CE,\TE TAX REBI\TES p()K k,DI:'C:ATOR LXPEYSf-'S AkD EK.:AC:T THE EDIICATOR
DEP'T'JORGANIZATION ORAL / M7RiTTEN CONTACT NO.
VI. WRITTEN TESTIMONY
Dipattwurcntcm KvnUibue i~ yan Adu'ana
- GOVERNMENT OF GUAM Gubetnamenton Grtlhan
The tjcpmfiit~~~ of ~ C C C C R U C & T~dx~Lton (i3R.l f S U ~ O ~ W C S itnd 9grec~ with tke t~ttmt ~ T E tht* pr<~pi*srri ibrnuki~~un. 1u :illoi.ff trrtucaton nls utrr rslad tu r e c ~ r e ii ~ b i % ~ o'i UP to S.%Fk an muiuru spm: 1%3 c;ualified &t;wtnr cgpal+o, wj~tf33I:y &JIY ng these :trnch uRn most ed~sclatt\r\ pay to$ ~ ~ ~ p p ~ a c s trnm Qlwnr ptnnnal funds fiorvcvcr, cansrdcrrfig t1.e ium.~; fnn,lnczel p ~ f t t ~ s of F ~ U I Gtwmmcat, ISRT ~cz~063mctdx4 81141 I h t ~ g~rupc~sZt! he: p-&l.h~r.auE dncf re~~tnsrdca:da.it tvhm tixc Gc.tcnn,nw?'~ l'fnai~cr~d ~ t r t t ~ i a o ~ ~ rtrtprtlvfi
?IK f dbtr IS iit~-crncd +~~wuI. * C ~ C p d ~ l l i t a l f01 1311?~1sa Eaxpaycr% ~ C I rewive 8 do~blc h e t i t JwulS thrs
Ic;t~~~~ih~rn pass gf of this p~upuad, ~BkWyt.?t& \\I#, ~ u R J I ~ ~ aoukd h. dillcr\\'crl a rchraec tor ~'xpcrw? cxc~cdtitg 911e Q2Stf 85 dlot~ed ~n ( i f t i 4 ($2 TAW p~pusuf dim wt ,rJdrcs\ axpuwcrs wllu w~il take rw~verd drcllrcuogls tor cix excc~s an t h r u x r a u m ~ . 4, tihis brli 1 % amttm, taxpiym 1r3i?)r he alkowtd to 3tcanr;kc the excess over $2S@ am1 stti1 yual~iy f iw- tRrs rv&re
*T!lr udnrtnrdtraiiern uf this Act UR? S k l h that an !xiif~tional burdm ~ ~ t k ~ i d be pldLrtf c t ~ i :he f)cpai;ltie~~r k t ~;rnplm~eel tiis ttstl.inslt addittondl rmnpxva apiwlnbr: to m~rlyrc guair ti tzl expmicr tn3rn cilglble c&iucntt>; s.
nkouid tdtis prr?psai hcc~ttt'tc l s ~ , fliC'1' i ~ ~ i l m&c thr :mxh%ary chmg~% in both pctllcy ar~t l ilrnl; as dcctricrf nrcc9snr)l $c! itilrniniii?rr lhgs Act.
L 0 .
(See 0 , 4 ,
lnstnrctions ' If a joint raturn. sp-s's ftrst namo and lnlttal Last n a m z j Spouse's sucral m u t i t y twrnkw on $age 1G.j E , t
' . use ttle IRS I F l t ~ l . Home address [number arrj strautj. If yw liaw a P.0. Cox. see psga 16. Apt. m.
: ~ I I E A Important! A I:'lint
' Uty. town w post off lc~ state 3 r d ZIP coda. If mu h a w a lweign dbtiss. ?a page 16. \'ou must +-kt+ ,:,r t> I:+.
P r e s ~ d e n t ~ i C'hazkln~ 'Ye.?" 5.t,rll not c h a n ~ e your t a i 01 rczluce yn!a refund.
. . . ;sea paw 16 i C~G \.:*.I. '3 )~?i.n gous? if flbnn a hint rdurn. aant '92 t*:. @:, tit t l rs fund? + R y e s ONO D y e s ON^
2% Otlicl initmie. hs t bpe m 3 arnuunt cser paue 31 .................... 22 .Add tlic am'sunts ln t l i i fcu I aht 3:irll~rnn fi,I l r ~ e s - tltt<v<li h 21. This is :.~<II
24 C&sn k~s~nessexpnses of resarr.lsts, petiwnilng artists and fee-bask governmi offkiats. Attach Forin 2 l R or 2 1 0 M Z
25 IRA sjsi lubcn ~ s r i page 2ii . . . . . . . . . 26 :Studant lean intelryt ,&ductioll (see page 938 . . . .
. . . . . 27 Tuitrtm a i d fees ~ckdlh:Q?n !see p a j r , 2 9 1
23 Healm sa;:ings av-n~mt deduction. Attattach Form - . . . . . . 29 fto~in~znpel~s+s..Att3.:hFc,rm?0~?3
30 (In?-half of self-m@oyment tax. Attach S c W u l e 5E . . 31 S.-lf-r~?iployerl h+Jlth irlrularlie deducthin :r~t. (-age 313: 32 Sdf-imy:,l.:~:ed SEP. :i.II,APLE, and qudiflscl plans . . - 33 Pat,ilty (2n ?all:: ;s:itli~:l~a,;;al r+f savings . . . . . . Ma Almn:r' wid b Recdent's SSN b I I . . 35 k J i l I n s 23 Vil,:,udh 243 . . . . . . . . . . 36 lut.tract IIE 3.5 ftcnl 111-e E l . Thr:, Is you1 adjusted gross inconle . . . . .
For Disclosure. Privacy Act, and PapetWork Reduction Act Notice. sea page 75. Cat. No 1 1 3'208 F l ~ l n 10.40 i X 4 ,
1 lirngle 4 HE& of household (~4th qualifying WSWFII !See w e 17.j If Filing Status 2 Idallied f l l n ~ eintly t e ~ ~ 1 ~f ord! ane h ~ d tl-p;o~ilit @ifylflg person IS a cMd but not your dependent. entw
CI1er:h txtl> 3 EVJarl~*:l tilbig sejxratdy. Enter ~ P ~ u T ~ ~ ' s 5% abme this chlld's n a m here. W c;,I.,; box. and firll nanw her?. , 5 ~iuaii7:lng ,~.CXwtec~ with depcnclait chlld w a pao;. 1 T I
Youffieff. lf X ~ r n w l i ~ can i ld~11 y.3~ as a ~de~wndent. do rrot 4:kck WJX $3 B°Kesct'ecke' on 6a .and 6t, -
c Dependents: 11) Rnt name Last name
n more t11a1 r .2~1 dipr rrcI+rrts. :: ii p:3%;1+ I 6.
12, (jspendmt.s M,l seclr~,,
, , I I
, Q 6 * I I
, * , , , 8 I t , ,
d T ~ t a l numter of ex l r r l~ t lsns clalrrkd . . . . . . . . . . . . . . . . . ~ n e s almva
t31 Dependent's relatim&Ip to
YOU
7 LVaa+s. ::alalic;. tips. at(:. .Attacli Folnl.:~: 8 - 2 . . . . . . . . . . . . . lnc0me 8a Taxable Interest. Attach .%h&ule I3 If requir+d . . . . . . . . . . . . A H ~ I , F ~ ~ ~ ( ~ ) b Tax-exentpt Interest. Do not irrcb.lde en line Ba . . . I 1 W-2 twe. Also Da Clrdnwr: di.isjrnifs. Attalzh Schncb-de 6: if raxrir.id . . . . . . . . . . . attaclt Eorrns b ~ > u a l i f i e c l d i ~ ~ i d z n ~ j - , t s z z ~ ~ a ~ e E ~ ) . . . . . . . 1 %J 1 1 W-2G and 1 0 % - ~ i f f ~ ~ 10 T a x a t ~ e ~ ~ u r ~ J ~ , . r r n d t s , r ; r ~ ~ f t s e t s ~ f s t a t ~ s n d I r ~ c d u - ~ a m r t a x e s ~ s e ; p ~ ~ e ~ ~ : ~ ~ . . 5*ias ~ ~ ~ f t h k t d . 11 ;il~m~:$i;. laca...eif . . . . . . . . . . . . . . . . . . . . .
12 Gusin.=ss Inci~nre 1,r tloss:. Attach bcher1~16 (I: s:)t r;-EZ . . - - . . . . - 13 t:~pital .Iran ~loss$. m a i h 5rhedule D it lequlr+d. If not lequircd. chbck h i r e Cj
t l ;c,u .jI;l t-1.3t 14 C~tliel o a n i czr *Iig>%e;!. Attnili Fnrni 473; . . . . . . . . . . . ;l&t . . a ',.\ - 2 , 2-e l:;,.~e I ,.? h Taxable amc48d tsee 22)
I& Penil,src. aal',d alirr~.i~tl;s b TmWe a m w 8 (see page 22,
Encktic. bf.lt dt:. 17 Rental r?al estate loyz!4tks, patmrshgs. S carretatlons. trusts. d c . Attach Schedule E not sttach. t8 Farm nm:.r~le or $losot. Atta:li Schrduk F . . . . . . . . . . . . . . I:arc?n bait A&.,. 11.1~35e 1154 . . . . . . . . . . . . . . . . . 19 IJnm>~4o>rre1it ~:irmpc.~~satlc.n
I JM~ q ~ ~ l d p p 0" WW"":
CM tor tM tu Ilrw! w th you - tf&I ISE mat 12: 4 did tlut live 0 you due to dwocce
or spy~ratbn (5- {)we 18) - Dependoras an & not antared alxivr -
Form 1040-V. 20a &ial securibj W f n s . I 20a I
-
I
7 1 8a
. 9a
, 10 11
t 2
. $3 14
3 5 b
f7 18
19
1
Other Taxes 59
b I your spwsa temnes on a s e w & retun or you Hare a dual-status allen, 32e page31 and c h ~ k here F 3 ' Standarct Detiuct'on -39 Itemized ileducttono :fle:qii :5ch.zdule k: or :IJLII standard deduct1011 ;$a+ left nraregin, . . for- - . . . . . . . . . . . . . . . . . . . 40 S~rt.ttsct line .3? f l~ r~n i Iln? 2.7
P+:b;.pl+ a hi, q:-,.r-g;~+:.;l an? 41 If line ' 2 ; is Sli17.627. or less, multq:il:; S.3.100 b> tlie totd n l ~ n i t r r of exnmpti~ni; i larn~e~rl .,n b:.# r-n llrle Ill= ':?&A. If lli-w ?.T if c:t..+?r !:l1>7.(.1'i:,. sea the .;;i,rbst~iet on page 32, , . , . . , . . 392 <?r :.qb or ,;:I+;. can k.- 42 Taxahie income. but-tract line 41 fioni line 4d. If line 41 is rnore than l ire 40. sntrr -Ca- ,
43 Tax isze page 33;. Check if any tax is horn: a FOII~-I*.I;I 88 I J R Form 3372 , . . . . . . . . . . . . . . r &I[ eqth+rs. 45 k r ld l l n s -13 and 44, . . . . :;inal+ c;r 4 6 Farc~gn t a i 3:rrdit. 4ttazh Fc~lrn I I l C . if lequund
' I r 47 Credit for chili1 and dspen.rlent care exwnsm. illtach Form 2441 :eparately 54.3:ct Sredlt fcir t h i +ld.?rl: or the disd?lrd. Attach :l,ihedul;. fi . .
. . . . . . . Marn*d filing 49 EdU;atl-:ill );redits. .Attit,:Il Forni :3SG:3 pintl: r.r i i ~ t k f y int~
W Ratir$nient savings wntrbut~c$i:. credit. Attach Fonn 8801;. . d ; 51 C . l i i l r l t s i c z l e d i t i s e i ~ ~ ~ r f ~ i . . . . . . . . . . $9.700 52 .&dq:<tiGn credit. Attach FQII 9 . . . . . . . . H+dd ol 53 i r r d i t s from: a Ftsrrn 6336 b Fwrn 8859 . . .
Payments 64
r
lii.urfihsld. $7.150
h
.':~cl~+Aulc EIC..
54 ~ C . t l ~ ~ e ~ c r r ; f i t c , . C l ~ ~ ~ k a p p l i ~ a b l e t ~ ~ ~ ~ ~ ~ s ~ ~ , : a n F - - /'-.-. nrnl J B ( J C I
L > b F im i 6601 c S ~ e ~ l f ; . . -
.- - ~~If-rt~-~pC:t::nlent tax. At ts ih Schedule SE . . . . . . . . . . . . . . . Sozlal sicurlty and M e d h x ~ tar on tlp Inconie ncrt tapotteY to employer Attach Form 41 37 . . .id,jtioc-~al tnx a-.n IRA$, o t t w qudiflet:I ~ re t i ~ rm in t f:,lai:, it*:. Attach FOI In 5.314 ~f ~+qultei l . ,~+~~:;t1irt.~arned111~:om~ite~rl1tpayrr1entsfrornFi~r1~t~stvY-2 . . . . . . . . . . Hoi1.sehc4d +nrplo?mi~-tt taxes. Attacli Sche~:lUlr H . . . . . . . . . . . . , AmAd llrses 56 ttlir--~luh 6 I. Thl: is yr~ts total tax . . . . . . . . . . . . b
oeSign ee ~ a s i g t w ~ ' ~ Phone Pemotxd Idontificatbn name W no. 1 I numter 1PNe
Sign Under pnalttss of perjury. I dezlaw that I I v o examined tMs rnurn aid accumpmqmg sdidules and slalmats, and to tho best of my knwlidge and bfillsf, thware tnrc, concct. and cornpleta. Dwlantion d prap3re iothor than tarpayEq Is bas& on all infornlatlon of whlch preparer k s any kmiuled~+.
54 I I I
~8 An~ourit 1:1aid u,itln r.;que.:4 ffrrr er~tctlsio~n tr, flle !see pa(gr 541
m e r e Y,our s~gnntul e . i ,-z~~it returmi k
Feili.r;~l 1n4:carni. tax .:;itlihrb3 f t a n Fern?? 'A'-,5 e7d 10'2! . . 63
2M14 estimate3 tax pj i i ients and mount applied from 2W3 retutn 64
Earned income credit fEIC] . . . . . . . . . . . Nontaxable combat pay dwtion b I 05b I '
EX.:~TS xc ia l .:ecurlt, and tler 1 RRTA tax nltllheld (see l ja je 54) ,e6 ,%!dltt~,nal ,:htld t a t cr+d~t J.ttas1-1 Folrn 8P12 . . . . . 67
3
57
~- 58
G I
s2
68 I I
( Date I Your occupation ) Daytime phme nun it&^
1
69 Other paymen$ tom: a ~ o ~ r n 2439 b Form 4135 c Form 6685 . 69 1 70 &.:Id Ilnas +>. 54. 655, and 66 thr~:.~~aIi CSY. Tt1er.e are ~ o u l total payments . . . . )
Refund 71 If l 1 1 1 ~ : " I.?. "'"re "INI Iirte 62 5uLba,:t IUI" 6 2 f1..'1'1i 1Ir1e "5. TI i5 IS the a m ~ u l l t ~ Q I J ovetpakcl dsposlt: 72a imc~unt ,of IIII;. T I yz,?~ 3xarit refunded to you . , . . . . . . . . . . . b
Seepage34 . b fic.ut~~ignunit~;t I, I I I I I I I 1 wCTyw:nCheck l rq U S e w g s F d ; I 1 I I I I I I I I I I I I I I I
92c. and T2J. 73 Amoullt of In9 71 ,you &ant appited to your 2005estlnlateci tax W 1 73 1 I
Amount 74 Amount you owe. bul,trait line T O from line €2. Fol details on hrm tto pxy. srz gaae 55 F You & 75 Estirnat?d tax pmztt: IS+? page 53; . . , . . , . . 1 75 [ I
-
Third Party DQ yuu )*+atit t o sib" aicnthfl persen t~ discuss this return a l'h the lK8 1- page 5t.i.i Yes. C-~rnpIett Uie folloukig. Nu
- ,
70 71
72a
74
. . . . . :'=+ bai7:1+ 17
ti.ierj 3 cob? Spouse's slgrieture. If a ioltit return. tmtti must sign. f,:d yS>Ltr
@ate
Pmpl'orar's SSM nr PTlN I I
Pre~arer's F1rn.s "a>ls i ~ r I EN Use Only y>ursit sM-~mployed).
oddrass. and ZIP nrrte I Phone no. i
Fnnn $040 12fjO4!
Paid
Spousa's cccupatim
Dsta check if sell-employed q
i , * . . . . : ,: .. - ,
OFEI N.3 l A 5 4 J 7 4
$i;i':('j4 :.-I,$
Attar;lui)ent S+qm* No. 07
SCHEDULES ABB (Fonn 1040)
~ . o ~ a t r r d d tha Traosuri 1den,nl savlc+ 1
Schedule A-Itemized Deductions {Schedule B is on back)
k Attach to Form 7041). + See Instructions tor Sdedrrles A and B (Form 1040).
4
Medica l Caution. Do rid I ~ U & rxwises rambus& a paid by atheis . . . a n d 1 Mdrcal and dental expensas [ s e page A-2:
Denta l 2 Entsramountfrwn Fum 1040. lhe 37 1 2 1 A . . . . . . . .
rjmt 3rd -got a sea page A-4. You must attach Form 3283 if ova $500 " ~ f i t fw,'t. 17 Q~ryuuer from plia year . . . . . . . . . .
Job Expenses 20 LJrrreirnbused elnployee e x p n s s j o b travel. union and Mtsl dues. job d ~ a t u n , etc. W t x h Fonn 21% ar 2106-U. Other d rqurred. I'&B Fage A-6 i b .-._-.-_---_-_._._--.-------- Wliscellalaolrs ................................................................ Dednetioas .. ..............................-.-.....-.......................
. . . . . . . . . . . 21 Tax pepaation b e ~ .
Nsiwer slwhn on Fnnn 1Wl
1
16 1 I _ 17 1
Casually and . . . . . . . TIlefl Losses 19 Caiudit< sr t ip8 l~rcsres~ Attach F o ~ m 4681 ISW p a y A-5,
LL I ................................................................ 23 Odd l1ni2.s 20 thlcict~jh 2 . . . . . . . . . 24 Enter amount from bm ti@, line 37 I 24 1 I I I
Yaw sactai SOCLLIIP{ mxn&i
,>A b Gen,al sides t a x 6 I,= pagf. A-=i f I:,na- + - 2 . 6 Real estate taxas I pxc &-7). . . . . . . .
7 Pawnal pupetly tax?: . . . . . . . . . . . . 8 Otlwt taws. L~st type ailcf <ullount b --.----_.-.-._---- ._.
19
25 t,!ult~pl;. line 2.1 ty 2.':. 1.02) . . . . . . . . . 125 1 I i 26 :;trlAr.?:t lirie 25 from lire 23 If line 25 rs more than Bne 23 ?nt+r 4- . . - - I 26
Expenses 3 t.iluftiplv Irne 2 by T.5,!,; i.0751. , 3 4 SirC%razt Irrw 3 horn lrne 1 If line 3 is nwre than I r n ~ 1. enter
Taxes You 5 Stde and Ilx,sl (check only one box). P a i d a Inco~rk twss. or . I 5
6 7
8
,t. pa* dJ. . . . . . . . . . . . . . . . . . . . 1% Add lrw: 15 t h r c ~ i ~ ~ h l i
.............................. Other 27 Otl.er--frl:~nl lrst on pacp A-6. Llst t v ~ a and arrii?~.~nt b 1 I
. . . . . - 1 3 .
18
. . . . . . . . . . . . . . . . . . . . 9 Add lirw 5 t l lrnwh ?.
Interest 10 Hornz n~ortcp~e rnterest and points rq~lerted to yea c.n Form 1<1132 10
I t e r n i z d Deduct ions
Yes i t u d&Alxtiort nla: ts linwtsd '& p@+ A d for tl-IS dmwnt to entx.
For Papenuorlc Reduction Act Not i r~ , ?&e Form 1040 InstrUCtlOnS. Cat. No. l l m Schedule A (Fomt 1040) 2M)4
9
I
. . . . M i s c e l i a l ~ ~ I ,.
You Pa id 1 I H m rrajctgage ~nterest not r w c d to you on Form li198. If paid , , y e to tho p ~ s l a ~ from :4bm jou bought the tmw. sw paw k-4 1)~,-1+ --:.. and shas that percan's m. rdentlping nr~ , m d adcksss b
................................................................ Note. ................................................................ p.,,, - . -..4 lal
12 Po~nts not r;.yjc~rt.;.d to lo11 or! Fcxm lii9d. Sw page &-.I n-~tcl?:t Ir . . . . . . . . . . . . . i1:st for spxral rules ,j+,ktibtii. 13 Inrestnmt ~rcterest Attach Fntm 4952 if req.quire!:i, i S s
. . . . . . . . . . . . . . . p;"3e A-4. i . . . . . . . . . . . . . . . . . . . 14 Add l r r . m 10 throi.1.2h 13
Gifts to 15 Gifts by c;mh ur c . t i ~ k . If you rnade any gitt of 5250 a . . . . . . . . . . . . . Charity n-me. w page A--I
rf .,c3u ma39 a 16 12tlwr than by car41 01 chxk . If any gdt of $250 3 3 more.
............................................................................................... Deductions 27
1 1
12
13
i 1
15
14 A .. ><'. : ~.*; :
I
Line 20 Urtreinsbaa rsed Ealtploy ee Expenses I L I ~ ~ I IIW 1111.11 trtltlwr*. -;dad ~ ~ c t h i h d ~ ~ irn11 eqwilzrk ~ a u I II itlridl >\ill u ct2 rlnl ~ I I I I I I ~ . ~C~$:111i, \ our s rn j>~wer i n L l u d ~ l III h *I l a ,I 5 11~1i-l-nn11 H 2 arc. IN !I c4 I I I ~ I L ~ ~ : r;cl rt'rtnhu~ w111et~1z.I
211 + r d ~ r ~ , m c'i jaw., 1s I ~ I W Ih,rl i c L I ~
I r l ~ r l l .IIIJ , i ~ ~ ~ ~ l ~ d it, )L~UI Ili'lj 111 t i d d ~ l~bl l lc ' a3 . t i 1 1'1c',.,ll~l. -4 J I L L ~ S ~ . ~ ti- iwll,c , , ,,, &, ,, r ~ ~ ~ ~ t ~ r .I,.I d,131~[XIdfC I t i t \L>UI h l l s i l l~~a ~ S I c X ~ V I L ~ ~ . Swk 1101 hd-rs 10 k icyui~.ll trx I r c u n ~ i l e r ~ d ntk% > A n .
lZul ?nu ulilat 1711 UI I*J dll.+lt ti11n1 2 I t lh 11 L , ~ L l ~ ~ I I I I I I 121 rlmt 4lpl1ek
Ci-i-idirr aluc.~~iof~.d r \ p rL tk 1->r Jc" Lirl a use Tels Tax topic 4 1 3 t sL.t. p y c k 01 h c 1 . m ItMl isilrucli~tnr) or %LW Pub lJ71t. l2tduce your mlucl l i~~l~al P X ~ L L S W by .UI\ tuii~ou s r ~ d I~wsdtd~~ci t r r r put ~ l a i ~ m i 1~fl~i1i111 lC4il. l i t~e 27.
Line 21 Tax Prepamtion F e e s b~rtcr It&? 1 ~ 4 s w u wid till yr,?yr~~lrrru t-rf
?IIW lax rellu& iuc/udin;: LLW., p i d l1~f lil iup p u r rdunl trlrs&ndr:rlli. Jl ji111 pad yrtur L3x hy c r~d l t cord. ti17 d i~lilll& the ~ ~ m v u ~ i h . a ~ tx riur wr P C ~ ~ W ~ C I J
1rnk1 h c tctdl dimtun1 vou pad t r > p n d u ~ e c r cx?flt.d ~ & I E .U)I\)I~C d u d III+!I~~C IY pv4ed. prc'(7aty hald lor earlltrlg ~ s c o r r ~ c Rut do t ~ ~ r l u c k Any wr%a,tl ~ ) X ~ W I I ~ L % . I i 5 t Ule tqw dad a m tun1 e.*. b PS i,r~be c o ~h! r~uitmi l i m b rtlrt lo line 22 . I\ you nmJ m ~ e spdce, .ittach a s t i k m ~ w l ~lx-m, in2 khr type and , ~ a , u u ~ l /il CXJ~*II.&. I , J I ~ I i311e b t d 6\11 ti11u 22.
I-rw~ph uPrrtpmwi.5 t 1 l r ~ l u d r 1x1 l i l l~ 22 sit.:
+ t-crtau~ Iqd AIILI . ~ L L L I U I I ~ I I I ~ I L ~ . + tXeqlidl txlp and ul Ir~v WIIL + Kl1bbm3~1I t11x exiunpi~, I I I I S ~ t t r~~u ln l )
Ictz, Tour ahxe of thu Inr fitrntwt
PIIS& ot t rcguIaI*?Ll in\ t r~ t i i~cr~l L ~ I I ~ % I I I ~ . li.sliltn l m x ? s ~ ~ u 11~11&&~?ldll\ IIISU~~II
Jc.l~lbils in an ~na-illclll nr hanknip tiudn- ~ i a l Gzlituti+n. T-IV JeidiL1. i n~ lu l i r~g liunits Urst apply. s t y ljub 53).
I k<u.ilts .31d lhrll bhw> nt p l t~wr i t I I . ~ III pn ti, mln . m v i ~ c h AS -111 J I I I ~ ~ ~ & la trr11:mr.n .ih\4. kuct 32 dad $817. Form J W . lule 1Ka
Line 27 C)r~ll lk ~&p:ti-?\ liatrl LXXI L.~II L'r" dt' d u ~ b l trlr this lirw I I T L the 1)lw . I I ~
dnoilnl 01 .rltih anfwtar I u UE dtlll~rl lillzz I ~ I tn li11~+ 27 11 O Y ~ U ILL^ IILW 'ijtrt. .~lidih .I st.itetnrnt ;IrvulrrC! t l~r ~ v p c Jnl . ~ X I O U I I ~ t ~ t v ~ ~ h ~ ~ L ~ I L Z ' . I II~C-I ~ . I I I L * b41.11 ,711 I1nc 2:
Line 28 1 {kc the MI k..dwt t en p d p 13 I 11) I I ~ I I I C 1 1 1 ~ .flnr~unt ICJ inta on Ilrie 3 it 1 1 ~ JII, > U I I I rrf1
t orill Ikt.l~J. IUYC XT. I \ \ I t 2 . 3 h 1
I 5;; 1.3% 11 a~anrcil LIIII I~ wpratt:l? I
VI11. CORRESPONDENCE
Audi Punzalan
From: ' Bck Klitzkie' ~:bob@bobso?fice,or~:~ To : 'Art ilagan' G:-ila~zn@n~ail .3cv.oc 33. Sent : Friday. februar y ' ', 2005 7 2 ' Atul Attach: Letier rc At'; ;lagan.ssc: Bill '3 :LSj - Stlbs:irute Bill.ccc Subject: Bill 1.3
Xs pc.1- our convcm-s:~:i( ycstc.r.day, I'm transmitting a 1ct:er ;wid suhstirutcr. hill t ' i ) ~ l c , ~ ~ ~ i ~ i n g YOLII. r > l ~ j t ' ~ t i c ) l l t ~ ) hill 13. I ~ i l h ~ i l t that the subs t~ tu t c Ix!l m w t s ysil: (j:JJ~'c';I<.kll 1-1' ci p0~c;lti;ll c10~1.1k bcl2cf'it f[3r tEIXpat-vl -~ ~ ~ 1 1 ~ 1 dcd~lct ~ r l r ~ k n l ? . ) i i ~ s t ' ~ i l>,lslllc.ss cspcnscs.
*** E-mail attachment below
k Z
C
Bob's Office The Office of Senator Robert Klitzkie
197 Hernan Cortes Ave., Suite A- I Hagatna, Guam 9691 0
- - -
February 11, 2005
Artemio Ilagan, Director Department of Revenue & Taxation P.O. Box 23607 G.M.F., GU. 96921
RE: BILL 13 (LS) AN ACT TO ENACT A NEW 11 GCA CH. 43 TO CREATE TAX REBATES FOR EDUCATOR EXPENSES AND ENACT THE EDUCATOR APPRECLATION ACT OF 2005
Dear Mr. Ilagan:
Thank you for being so responsive to Bill 13 for the public hearing held on January 25, 2005. In consideration of your testimony submitted to the Committee on Finance, Taxation and Commerce, I have decided that the definitional section of the bill must be amended. You highligh~ed concerns of the potential for taxpayers to receive "double benefits" by itemizing the excess (line 20, Schedule A form) over the $250 deduction (line 23, form 1040), while also qualifying for the $500 rebate provided by Bill 13. To address this issue, set out below is the underscored amendment to subsection (b) of $4302:
$4302. Definitions. The definitions set forth herein shall govern the construction and interpretation of this chapter;
(b) Qualified expenses means unreimbursed expenses exceeding $250 lcss any unreimbursed employee expenses upon which a deduction from adjusted gross - income is based that an eligible educator paid or incurred for books, supplies, computer equipment (including related software and services), other equipment,
and supplementary materials that the educator used in his or her classroom. For courses in health or physical education, expenses for supplies are qualified expenses only if they are related to athletics.
A subslitutc hill incorporating the amendment has been drafted and included in the draft committee report to bc submitted lo the Chairman of the Commitlee on Finance, Taxation, and Commcrce.
I'd appreciate any additional comments you have on the bill.
Sincerely, Senator Robert Klitzkie 28"' Guam Legislature