Tax Refund Responsibility Act

I 116TH CONGRESS 1ST SESSION H. R. 4262 To ensure that refunds of overpayments of the Guam Territorial Income Tax are issued in a timely manner, and for other purposes. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 10, 2019 Mr. SAN NICOLAS introduced the following bill; which was referred to the Committee on Natural Resources A BILL To ensure that refunds of overpayments of the Guam Terri- torial Income Tax are issued in a timely manner, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Tax Refund Responsi- 4 bility Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds as follows: 7 (1) For nearly two decades, the Government of 8 Guam has been unable to set aside money to pay for 9 income tax refunds and instead has relied on accu- 10 VerDate Sep 11 2014 01:57 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4262.IH H4262 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4262 IH mulated deficits and subsequent borrowing on the 1 bond market, amassing close to half a billion dollars 2 of debt, to pay accrued income tax refund payments 3 owed to its taxpayers. 4 (2) The enactment of an amendment to the Or- 5 ganic Act of Guam requiring that the Government of 6 Guam deposit tax collections in the Income Tax Re- 7 fund Efficient Payment Trust fund, as created by 8 Guam Public Law 26–74, would prevent further un- 9 balanced budgeting, deficit spending, chronic bor- 10 rowing, and future burdens on the taxpayers of 11 Guam. 12 SEC. 3. TIMELY REFUNDS OF OVERPAYMENT OF GUAM 13 TERRITORIAL INCOME TAX. 14 Section 31 of the Organic Act of Guam (48 U.S.C. 15 1421i) is amended by adding at the end the following: 16 ‘‘(i) The Governor of Guam shall ensure that— 17 ‘‘(1) each form filed by a person or entity for 18 a refund of overpayment of the Guam Territorial In- 19 come Tax is processed by the Government of Guam 20 not later than 90 days after such form was filed; 21 and 22 ‘‘(2) a refund of the full amount of any over- 23 payment of the Guam Territorial Income Tax that 24 the Government of Guam has deemed valid is issued 25 VerDate Sep 11 2014 01:57 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4262.IH H4262 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4262 IH to the person or entity who filed for such refund not 1 later than 90 days after the form for the refund was 2 filed.’’. 3 SEC. 4. DEPOSIT TO THE INCOME TAX REFUND EFFICIENT 4 PAYMENT TRUST FUND. 5 The Organic Act of Guam (48 U.S.C. 1421 et seq.) 6 is amended by inserting after section 22D the following: 7 ‘‘SEC. 23. DEPOSIT TO THE INCOME TAX REFUND EFFI- 8 CIENT PAYMENT TRUST FUND. 9 ‘‘Not later than 10 days after the end of each cal- 10 endar month, the Governor of Guam shall ensure that 11 there is directly deposited into the Guam Income Tax Re- 12 fund Efficient Payment Trust Fund a percentage of the 13 payroll withholding taxes and income taxes collected by 14 the government of Guam for that month and a percentage 15 of the self-employed payroll withholding taxes collected for 16 the quarter, equal to the percentage of the budgeted fore- 17 casted amount set aside for income tax refunds, earned 18 income tax credits, and child tax credits adopted in the 19 Government of Guam’s fiscal year budget, so that not 20 later than 10 days after the end of the calendar year, not 21 less than the amount necessary for income tax refunds, 22 earned income tax credits, and child tax credits for that 23 calendar year shall have been deposited into the Trust Re- 24 fund Efficient Payment Trust Fund.’’. 25 VerDate Sep 11 2014 01:57 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4262.IH H4262 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4262 IH SEC. 5. EFFECTIVE DATE. 1 The amendments made by this Act shall take effect 2 on the first January 1 to occur after the date of the enact- 3 ment of this Act. 4 Æ VerDate Sep 11 2014 01:57 Sep 11, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H4262.IH H4262 pamtmann on DSKBC07HB2PROD with BILLS