STATEMENT: CLARIFYING THE APPLICABILITY OF FEDERAL REMITTANCE TAX TO GUAM

(Washington, D.C) In response to recent concerns regarding a proposed 1% federal remittance tax included in H.R. 1, I want to provide clarity and reassurance to the people of Guam that this provision does not apply to our island.

I want to thank the Governor’s Office for bringing this issue to our attention and seeking clarification on behalf of our community. My office immediately looked into the matter and took steps to verify the facts. To ensure accuracy, we reached out directly to the Congressional Research Service (CRS), which confirmed that the proposed tax is structured as an excise tax. Under federal law, specifically 48 U.S. Code § 1421i(a), only income tax provisions are applicable to Guam. Excise taxes, like the ones proposed in this legislation, do not apply to our jurisdiction.

This means that residents of Guam who send money abroad will not be subject to the additional 1% remittance tax that would impact U.S. residents. Remittances are a lifeline for many working families across the Pacific. I understand the concern any new tax would cause, especially when so many in our community rely on sending support to loved ones throughout the region. 

As always, my office will continue to monitor federal legislation and ensure accurate, timely information is relayed to our community.

END STATEMENT