REVENUE
Chapters:
02 Filing of Federal Tax Liens
03 Sales
Tax
04 Income
Tax
05 Amendments to Internal Revenue Code
07-09 (Reserved)
11 Secondhand Imported Items Tax
12-14 (Reserved)
16 Tax Incentives for Businesses
17 Industrial Development Financing
19 Economic Development Financing
30 American Samoa Finance Committee
Chapter 01
GENERAL PROVISIONS
Sections:
11.0101 Authority
to impose special taxes.
11.0102 Setoff against money owed government.
11.0103 Showing of payment of taxes prior to leaving American Samoa.
11.0101 Authority to impose
special taxes.
(a) In addition to the taxes imposed by this title, the Governor may at any time, either
upon the request of the chief of any district, county, or village, or upon his
own initiative, authorize and direct the chief of the district, county, or
village to levy a special tax for a special purpose.
(b) The Governor may impose such restrictions on
the methods for levying the tax and the purposes for which the money may be
expended, as he deems appropriate.
(c) Payment of any special tax may be enforced
in accordance with the provisions of chapter 04 of this title, relating to
income taxes.
History: 1965, PL 9-22.
11.0102 Setoff against money
owed government.
The
Treasurer of American Samoa may deduct from any amount, which the government
owes to any person the amount of any tax, license fee or other sum, which such
person owes to the government.
History: 1965, PL 9-22.
11.0103 Showing of payment
of taxes prior to leaving
Before
leaving
History: 1965, PL 9-22.
Chapter 02
FILING
OF FEDERAL TAX LIENS
Sections:
11.0201 Place of filing.
11.0202 Effect of certification of notices.
11.0203 Duties of filing officer.
11.0204 Fees.
Reviser’s Comment: Section 18.1005 of the Code of American Samoa.
1961 Ed., provided: “This act (this chapter) shall be so interpreted and
constructed as to effectuate its general purpose to make uniform the law in
those states which enact it”.
11.0201 Place of filing.
Notices
of liens on real and personal property, tangible or intangible, for taxes payable
to the
History: 1970, PL 11-105.
11.0202 Effect of
certification of notices.
Certification
by the Secretary of the Treasury of the
History: 1970, PL 11-105.
11.0203 Duties
of filing officer.
(a) If a notice of federal tax lien, a refiling of
tax lien, or a notice of revocation of any certificate described in subsection
(b) is presented to the filing officer, he shall endorse thereon his
identification and the date and time of receipt and forthwith file it
alphabetically or enter it in an alphabetical index, showing the name and
address of the person named in the notice, the date and time of receipt, the
serial number of the district director and the total unpaid balance of the assessment
appearing on the notice of lien.
(b) If a certificate of release, nonattachment,
discharge, or subordination of any tax lien
is presented to the filing officer for filing, he shall:
(1) cause
a certificate of release or non-attachment to be marked, held and indexed as if
the certificate were a termination statement within the meaning of the Uniform
Commercial Code, except that the notice of lien to which the certificate
relates shall not be removed from the files;
(2) cause a certificate of discharge or subordination
to be held, marked and indexed as if the certificate were a release of
collateral within the meaning of the Uniform Commercial Code.
(c) If a refiled notice of federal tax lien
referred to in subsection (a) or any of the certificates or notices referred to
in subsection (b) is presented for filing, he shall attach the refiled notice
or the certificate to the original notice of lien and shall enter the refiled
notice or the certificate with the date of filing in an alphabetical federal
tax lien index on the line where the original notice of lien is entered.
(d) Upon request of any person, the filing officer
shall issue his certificate showing whether there is on file on the date stated
therein any notice of federal tax lien or certificate or notice affecting the
lien filed or naming a particular person, and if a notice or certificate is on
file, giving the date and hour of filing.
History: 1970, PL 11-105.
11.0204 Fees.
(a) The fee for filing and indexing each notice of
lien or certificate or notice affecting the tax lien shall be $3.
(b) The fee for a certificate under section
11.0203 shall be $1.
(c) The filing officer shall bill the district
directors of Internal Revenue on a monthly basis for fees for documents filed
by them.
History: 1970, PL 11-105.
(Reserved)
Sections:
11.0401 Substitution of terms.
11.0402 Interpretation of
chapter.
11.0403 Imposition of
tax-Citation.
11.0404 Administration and
enforcement of income tax.
11.0404.1 Businesses operating under a tax exemption.
11.0405 Part-year
residents—Returns required—Deductions— Exemptions and credits.
11.0406 Withholding exemption certificate required.
11.0407 Income tax reserve account.
11.0408 High
Court jurisdiction.
11.0409 Suits for recovery of taxes— Payment of judgments.
11.0410 Execution against Governor and government personnel.
11.0411 Collection
actions.
11.0412 Tax
liens.
11.0413 Criminal
offenses.
Reviser’s Comment: Section 5 of PL 15-52 provided that “For 1978,
payments of estimated income tax by individuals shall be made at intervals
established by the Tax Office”.
11.0401 Substitution of
terms.
In the
application of this chapter and chapter 11.05, except where it is clearly
otherwise required, the applicable provisions of the United States Internal
Revenue Code of 1954 shall be read so as to substitute “American Samoa” for “United
States”, “Treasurer of American Samoa” for “Secretary or his delegate”,
“Treasurer of American Samoa” for “Commissioner of Internal Revenue” and
“Collector of Internal Revenue”, and “High Court” for “District Court” and “Tax
Court”, with other changes in nomenclature and other language, including the
omission of inapplicable language, where necessary to effect the intent of
this section.
History: 1963, PL 8-1; amd
1987, PL 20-29 § 2.
Amendments: 1987
Substituted “Treasurer of
Case Notes:
Creditor who already obtained a judgment and a writ of execution and levied upon the property of judgment creditor prior to the notice of ASG's tax lien, prevails against the ASG as a judgment lien creditor with respect to such property. 26 U.S.C. § 6323(a); A.S.C.A. § 11.0401 et seq. Shantilal Brothers, Ltd. v. KMST Wholesale, 15 A.S.R.2d 115 (1990).
The holder of a security interest, in the form of a chattel mortgage duly registered, prevails over the tax lien of ASG with respect to the proceeds of the sale of those items covered by its mortgage on the date the tax lien became effective. 26 U.S.C. §6323(a); A.S.C.A. § 11.0401 et seq. Shantilal Brothers, Ltd. v. KMST Wholesale, 15 A.S.R.2d 115 (1990).
High Court of
Statutory
requirement that petition for redetermination of deficiency of income taxes be
made within 90 days after notice of deficiency was mailed is
jurisdictional. 26 U.S.C. § 6213(a);
A.S.C.A. § 11.0401. Stephens v.
11.0402 Interpretation of
chapter.
This
chapter and chapter 11.05, the Samoan Income Tax, must be interpreted and
administered in a manner to:
(1) prevent the collection of the Samoan Income Tax
at the source on wages which, by virtue of section 931(i) of the United States
Internal Revenue Code of 1954, are subject to the collection of the United
States Income Tax at the source;
(2) suspend the assessment of interest or penalty
on that amount of unpaid Samoan Income Tax, refund to which a taxpayer is entitled
from the Internal Revenue Service for the same taxable period; provided, that
the Samoan Income Tax is paid within 10 days of the receipt of the U.S. income
tax refund, but no later than the 15th day of the 6th month following the due
date of the Samoan return (determined with regard to any extension of time for
filing); and provided also, that the Samoan Income Tax return is timely filed including extensions
granted. In the event the Samoan tax return is not timely filed, the provisions
for a 5% negligence penalty as provided in section 6653(a) of the Internal
Revenue Code must apply to the total tax due American Samoa, unless delay in
filing is due to fraud, in which case the fraud penalty of 50% as imposed by section 6653(b) of the
Internal Revenue Code must apply;
(3) deny the relief offered in subsection (b) to
taxpayers who do not avail themselves of the credit allowed by sections 33 and
901 of the United States Internal Revenue Code of 1954 against their United
States Income Tax;
(4) treat a citizen or resident of the United
States as a citizen or resident of American Samoa for purposes of section
152(b)(3), relating to the definition of a dependent, and section 6013(a)(l),
relating to joint returns by a husband and wife, of the United States Internal
Revenue Code of 1954;
(5)
give appropriate and binding effect on the Governor and the High Court for
action taken by the Tax Court, or any court of competent jurisdiction, of the
History: 1965, PL 9-22; 1971,
PL 12-18 § 1;amd 1980, PL 16-87 § 1; amd 1983, PL 18-2 § 1.
Amendments: 1983 Subsection
(5) amended to eliminate the binding effect of action on specific income tax
returns.
1980 Amended subsection (2) and
added subsection (5).
11.0403 Imposition of
tax—Citation.
(a) The income tax and the income tax rules in
force in the
(b) For reference purposes, this chapter and
chapter 11.05, and all provisions of the United States Internal Revenue Code of
1954 adopted by reference in subsection (a), may be cited as the “Samoan Income
Tax Act”.
History: 1963,
PL 8-l; amd 1977, PL 15-52 § 1, amd 2001, PL 27-15.
Amendments:
1977 Subsection (a): added
reference to income tax rules and regulations, and added words “or adopted” in
first sentence.
2001 Subsection (a): added words “in effect on
Case Notes:
Territorial
Legislature has incorporated by reference the United States Internal Revenue
Code, 26 U.S.C., for income taxation in
11.0404 Administration and
enforcement of income tax.
(a) The administration and enforcement of the
American Samoa Income Tax shall be the responsibility of the Treasurer of
American Samoa under the general supervision of the Governor.
(b) The Treasurer shall have the same administrative
and enforcement powers and remedies with regard to the American Samoa Income
Tax as the Secretary of the Treasury, and other
(c) Rules for enforcement of the Income Tax Act
shall be prescribed by the Treasurer.
(d) The Treasurer shall have authority to issue,
as needed, all or a part of the text of income tax laws in force pursuant to
this chapter, but the failure to exercise such authority may not prejudice or
limit the application of the laws so in force.
History: 1963, PL 8-1; amd
1987, PL 20-29 § 3.
Amendments 1987 Subsection (a): changed “Treasurer” to lower
case; added “general” before “supervision”.
Subsection (b) substituted “Treasurer” for “Governor”: capitalized
“executive”.
Subsection (c):
Substituted “Treasurer” for “Governor” and “as needed, all or a part of” for
“from time to tune, in whole in part,”
11.0404.1 Businesses
operating under a tax exemption.
(a) All businesses having a tax exemption under
11.1601 et seq. shall claim the credits allowed by section 38 (relating to the
investment tax credit), section 50A (relating to the credit for expenses of
work incentive programs), and section 51 (relating to the credit for employment
of certain new employees), in the year earned, without any carry over to other
tax years, and shall depreciate property under the provisions of section 167
during the period of exemption, whether or not any taxable income is realized
because of the tax exemption.
(b) A net operating loss sustained by a tax-exempt
business during a taxable period will be allowed as an offset against income
realized from other sources during the same period.
(c) If an excess of net operating loss (computed
under subsection (b)), sustained during the tax exemption period exceeds the total
income from the tax exempt business during the same period, the excess will be
allowed as a carry-over subject to the provisions of section 172.
(d) The credit for foreign taxes under section 33
shall be allowed as a carry-back or carry-over only to the extent such credit,
computed under section 901, exceeds the tax that would have been incurred
except for the exemption granted under 11.1601 et seq.
History: 1980, PL 16-87 § 3.
11.0405 Part-year residents-Returns required-Deductions -Exemptions and
credits.
(a) A part-year resident, for the period that he
is a resident of American Samoa, must report on his Samoan income tax return
all Samoan sources of income including wages from U.S. Government agencies.
(b) A part-year resident may claim the optional
standard deduction in lieu of itemized deductions; however, the amount
allowable is 1/12 per month for the number of months he is a resident of
(c) If itemized deductions are claimed in lieu of
optional standard deduction they must have been paid during the period while a
part-time resident and be
(d) A part-year resident may not use the tax
table.
(e) When the tax is computed under the graduated
rates (without regard to the optional tax table), the personal exemption and
dependency credits are allowed for each month of residency in
History: 1970, PL 1l-99;amd
1974, PL 13-50; amd 1980, PL I6-87 § 4.
Amendments: 1974 Subsection (h): added. 1980 Repealed
subsections (f), (g), and (h).
11.0406 Withholding
exemption certificate required.
(a) The provisions of the income tax relating to
the collection of income tax at the source on wages shall apply to remuneration
paid on or after the first day of the first month which begins more than 30
days after the date of enactment of this chapter.
(b) Not later than 15 days before the date on which
the collection of income tax at source on wages first becomes effective under
subsection (a), each employee receiving wages shall furnish his employer with
the withholding exemption certificate required by section 3402 (f) (2) of the
United States Internal Revenue Code of 1954 as adopted and amended by American
Samoa.
(c) The provisions of chapter 3 of the Internal
Revenue Code, relating to withholding of tax on nonresident aliens and foreign
corporations, shall be effective after
History: 1963, PL 8-1.
11.0407 Income tax reserve account.
(a) The Treasurer of American Samoa shall
establish an “Income Tax Reserve Account” promptly upon the enactment of the
Samoan Income Tax Act and shall deposit in such account 25% of all corporate
income taxes, as and when collected, unless at the time of collection the
reserve account has a net balance of not less than $ 1,000,000.
(b) The reserve account shall constitute a trust
fund out of which refunds and other adjustments shall be made in favor of any
corporation subject to the Samoan Income Tax Act.
(c) The money in the reserve account shall remain
in a segregated status unless the Legislature of American Samoa authorizes its
use for other purposes and provides for reimbursement of the account as and
when needed.
History: 1965, PL 9-22;
1967, PL 10-20; amd 1987, PL 20-29 § 4.
Amendments: 1987 Subsection (a): substituted “Treasurer of
American Samoa” for “Governor”.
Reviser’s Comments: PL 13.53, 1974, which provided it was to take effect
upon signing by the Governor (it was signed
PL 16-37,
effective
11.0408 High Court jurisdiction.
The
High Court shall have exclusive original jurisdiction over all judicial
proceedings in
History: 1963, PL 8-1.
Case Notes:
High Court of
11.0409 Suits for recovery of taxes—Payment of judgments.
(a)
Suits for the recovery of any American Samoa Income Tax alleged to have been erroneously
or illegally assessed or collected, or of any penalty claimed to have been
collected without authority, or of any sum alleged to have been excessive or in
any manner wrongfully collected, are subject to the statutory requirements
applicable to suits for the recovery of such amounts maintained against the
United States in the United States District Courts with respect to the United
States Income Tax.
(b) When any judgment against
History: 1963,
PL 8-1.
Case Notes:
The High
Court, while sitting as a Tax Court for deficiency proceedings, does not have
jurisdiction to hear such a deficiency proceeding unless it was filed within
the statutory deadline; while sitting as a District Court for refund cases, it
lacks jurisdiction until there has been payment or collection of disputed
taxes. 26 U.S.C. § 7422; A.S.C.A. §
11.0409. Stephens v.
11.0410 Execution against Governor and government
personnel
(a) Execution may not issue against the Governor
or any officer or employee of American Samoa on a final judgment in any
proceeding against him for any acts or for the recovery of money exacted by or
paid to him and subsequently paid into the Treasury of American Samoa in
performing his official duties with respect to the American Samoa Income Tax if
the court certifies that probable cause existed, or such officer or employee
acted under the directions of the Governor or his delegate.
(b)
When such execution has been issued, the Governor
or his delegate shall order the payment of such judgment out of any
unencumbered funds in the Treasury of American Samoa.
History: 1963, PL 8-1.
11.0411 Collection actions.
A
civil action for the collection of the
History: 1963, PL 8-1.
Case Notes:
In prosecution for fraudulent intent to evade
tax, 3 years statute of limitations applies instead of 6 years where defendant
did not “omit” income information but included it in attachment to or in other
section of tax return. Ah San v. Lutali, 4 A.S.R.2d 177(1987) (mem).
Burden of proof on government to prove fraudulent
intent to evade tax is by “clear and convincing evidence”. 26 U.S.C. 37454.
11.0412 Tax liens.
History: 1963, PL 8-1.
11.0413 Criminal offenses.
Any
act or failure to act with respect to the American Samoa Income Tax which constitutes
a criminal offense under chapter 75 of subtitle F of the United States Internal
Revenue Code of 1954, as adopted by this chapter, is an offense against
History: 1963, PL 8-1.
11.0414 Notification and assessment of Samoan income tax in the case of
adjustments to
(a) In the case of a taxpayer that is a
corporation that has engaged in a trade or business in American Samoa during a
taxable year, such taxpayer (or its successor) shall report to the Treasurer of
American Samoa any change or correction by the gross income, deduction, credit,
or allowance as reported for such taxable year (or for a taxable year of a
person described in paragraph (2) that includes such taxable year) on the
United States income tax return of:
(1) the taxpayer, or
(2) any person who is related (within the meaning of section 482 of the United
States Internal Revenue Code) to the taxpayer, that is attributable or
otherwise related to the carrying on by the taxpayer of such trade or business
in American Samoa or to the purchase, sale, lease, or other transfer of goods,
services, or property or other transactions between related persons and the
taxpayer in carrying on its trade or business in American Samoa. For purposes of this section, the category of
items of gross income, deduction, credit, or allowance of the taxpayer or a
related person that are treated as otherwise related to the carrying on by the
taxpayer of its trade or business in American Samoa or to do transactions
between related persons and the taxpayer in carrying on its trade or business
in American Samoa shall include an item that arises out of one or more
transactions involving substantially comparable goods, services, or other
property undertaken between related persons and the taxpayer in carrying on a
trade or business outside of American Samoa.
The taxpayer shall make such report to the Treasurer of American Samoa
within ninety days after the final determination of such change or
correction. The taxpayer shall concede
the accuracy of such determination or state wherein it is erroneous. In the event that the taxpayer or any related
person files an amended United States income tax return for any taxable year
with respect to any item of gross income, deduction, credit, or allowance that
is attributable or otherwise related to the carrying on by the taxpayer
of a trade or business in American Samoa or to the purchase, sale, lease, or
other transfer of goods, services, or property or other transactions between
related persons and the taxpayer in carrying on its trade or business in
American Samoa, the taxpayer (or its successor) shall file within ninety days
thereafter a copy of such amended United States income tax return with the
Treasurer of American Samoa and shall provide such additional information as
the Treasurer of American Samoa may require.
The Treasurer of American Samoa is not required to accept as correct for
Samoan income tax purposes any such change or correction by the Commissioner of
Internal Revenue or amended
(b) Upon the making by the taxpayer of the report required under
subsection (a), or the filing of the copy of the amended return as described in
subsection (a), or the filing of the copy of the amended return as described in
subsection (a), the Treasurer of American Samoa shall have, notwithstanding any
provision of the Samoan Income Tax Act to
the contrary, a period of two years following the date upon which the taxpayer
makes the report required under subsection (a), or files such copy of the
amended return, within which to assess upon the taxpayer such additional Samoan
income tax, if any, as is appropriate under the provisions of the Samoan Income
Tax Act in respect of the taxable year or years to which such report or amended
return relates. The provisions of this
subsection shall not affect the time within which or the amount for which an
assessment otherwise may be made by the Treasurer of American Samoa.
(c) In the event that a taxpayer fails to report a change or correction
by the commissioner of Internal Revenue, or fails to file the copy of the
amended return, as and when required by subsection (a) hereof the assessment of
additional Samoan income tax by the Treasurer of American Samoa may be made at
any time, notwithstanding any provision of the Samoan Income Tax Act to the
contrary.
(d)
For purposes of this section:
(1) The term "report" shall include, but not be limited to, the
taxpayer's name, address, and identifying number, the taxable year or years
that are affected by the change or correction described in subsection (a), a
listing of the names, addresses, and identifying numbers of any related persons
involved in the change or correction, a description and listing of the dollar
amounts of such change or correction, a copy of the final determination of such
change or correction, and such other information as the Treasurer of American
Samoa may prescribe.
(2) The term "final determination" shall include:
(A) the issuance of a 90-day
notice of deficiency pursuant to section 6211 and 6212 (or a jeopardy
assessment pursuant to section 6861) of the United States Internal Revenue
Code, unless a timely petition to redetermine the deficiency is filed in the
United States Tax Court in which case the judgement of a court of last resort
affirming or redetermining such deficiency is deemed to constitute the final
determination;
(B) the assessment of a deficiency
pursuant to a waiver filed under section 6212 of the United States Internal Revenue
Code in the case where no 90-day notice of deficiency is issued;
(C) a closing agreement made under
section 7121 of the United States Internal Revenue Code or similar agreement in
compromise executed by the Commissioner of Internal Revenue and the taxpayer or
related person; and
(D) an allowance by the
Commissioner of Internal Revenue, or by a court of competent jurisdiction in a
final judgement, on the
(e)(1) This
section 11.0414 shall apply to taxable years ending after 1980 as to which a
final determination (within the meaning of this section) by the Commissioner of
Internal Revenue or the filing of an amended
(2) The
amendments made by this act shall be effective as if included in section
11.0414, as originally enacted, of the American Samoa Code Annotated and shall
apply to taxable years ending after 1980 as to which a final determination
(within the meaning of section 11.0414(a) of the American Samoa Code Annotated)
by the Commissioner of Internal Revenue or the filing of an amended United
States income tax return with the Commissioner of Internal Revenue is made
after December 31, 1989; provided that in the case of a final determination or
the filing of an amended United States income tax return that has been made
during the period prior to the date of enactment of this act, the ninety-day
period described in section 11.0414(a) of the American Samoa Code Annotated
within which the taxpayer is to make its report to the Treasurer of American
Samoa shall be treated as commencing on the date of enactment of this act and
the two-year period described in section 11.0414(b) of such Code within which
the Treasurer of American Samoa may assess additional Samoan income tax upon
the making of such report by the taxpayer shall be treated as commencing on the
date on which the taxpayer files such report during the period following the
date of enactment of this act.
History: 1990, PL 21-37; amd 1991, 22-10.
Chapter 05
Sections:
11.0501 Amendments to Internal Revenue Code, as
adopted.
11.0502 Section 5 redesignated as Section 6.
11.0503 Section 5 added.
11.0504 Effective date of Section 38.
11.0505 Last sentence of Section
48 (d), and all of Section 48 (g) deleted.
11.0506 Section 63 (a) amended.
11.0507 Repealed.
11.0508 Section 876 deleted.
11.0509 Section 881 (a) (1)
amended.
11.0510 Paragraph (e) added to
Section 881.
11.0511 Paragraph (f) added to
Section 881.
11.0512 Section 931 deleted.
11.0513 Section 932 deleted.
11.0514 Paragraphs (1) and (2) of Section 933 amended.
11.0515 Section 1441 (c) amended.
11.0516 Section 1441 (b) amended.
11.0517 Paragraph (d) added to Section 1442.
11.0518 Paragraph (e) added to Section 1442.
11.0519 Section 3401 amended.
11.0520 Section 3402 (a) amended.
11.0521 Section 3402 (c) (1)
amended.
11.0522 Subsection (c), (f) (6),
and (j) of Section 3402 deleted.
11.0523 Section 3402 (f) (1)
amended.
11.0524 Section 3402 (f) (2) amended.
11.0525 Adds (7) to Section 3402 (f).
11.0526 Section 3404 amended.
11.0527 Adds (33) to Section 7701 (a).
11.0528 Chapter 2 deleted.
11.0529 Chapter 4 deleted.
11.0530 Sections 43 and 3507 deleted.
11.0531 Renumbers Section 221 to 222 and adds new Section
221.
11.0532 Section 457 (d) (1)
amended.
11.0533 Partial recoupment of
corporate taxes.
11.0534 Maximum tax imposed upon corporations.
11.0501 Amendments
to Internal Revenue Code, as adopted.
The United States Internal Revenue Code of 1954, as adopted by
History: 1963,
PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969, PL 11-45; 1970, PL 1-134.
11.0502 Section 5
redesignated as Section 6.
Section 5, relating to cross-reference with respect to tax on
individuals, is redesignated as Section 6.
History: 1963, PL
8-1; 1965; PL 9-21; 1966, PL 9-52; 1969, PL 11-45; 1970, PL 11-134.
11.0503 Section 5 added.
Section 5 is added to read:
“SEC. 5. ALTERNATE MINIMUM TAX. In the case of a taxpayer other than a
corporation, if an amount equal to 4% for tax year 2001 and 4% for tax years
thereafter of the adjusted gross income exceeds the regular tax for the taxable
year then there is imposed a tax equal to such excess. For the purpose of this
section the term “regular tax” means the tax imposed by sections 1 and 3 for
the taxable year reduced by the credits allowable under subpart A of Part IV of
this subchapter other than that allowed by section 31. This alternate minimum
tax does not apply to a handicapped taxpayer who earns $1,000 or less, or to
the first $5,000 earned by a taxpayer age 65 or over during the taxable year.
The term handicapped taxpayer means an individual with a mental disability
resulting in subaverage intellectual functioning or impaired social competence,
or with a physical disability, infirmity, malformation, or disfigurement which
is caused by bodily injury, birth defect, or illness, including epilepsy. It
shall include without limitation any degree of paralysis; amputation; lack of
physical coordination; blindness or visual impediment; deafness or hearing
impediment; muteness or speech impediment; or physical reliance on a guide dog
for the blind, a wheelchair, or any other remedial appliance or device.
History: 1977, PL 15-52 § 3;amd 1980, PL 16-87 § 2;
PL 18-25 § amd 1985, PL 19-33 § 1;amd 2001, PL 27-13.
Amendments: 1980 changed section 6 to section 5 and
amended section generally.
1984 Added to
Section 5 to exempt certain handicapped taxpayers from tax.
1985 Added “or to
the first $5,000 earned by a taxpayer age 65 or over”.
2001 Changed 2%
alternate minimum tax to 4% for tax year 2001 and tax years thereafter.
11.0504 Effective
date of Section 38.
Section 38, relating to investment credit, shall be
effective on all property placed into service on or after
History: 1977, PL 15-52 § 2; amd 1980, PL 16-87 § 2.
Amendments: 1980
Deleted last sentence.
11.0505 Last sentence of Section 48 (d), and all of Section 48 (g)
deleted.
The last sentence of Section 48 (d), relating to certain
leased property, and all of Section 48(g), relating to adjustment to basis of
property, are deleted.
History: 1963, PL 8-1; 1965,
PL 9-21; PL 9-66, PL 9-52; 1969, PL 11-45; 1970, PL 11-134.
11.0506 Section
63(a) amended.
Section 63(a), relating to the definition of taxable
income, is amended by deleting “Except as provided in subsection (b),” and by
inserting in lieu thereof “Except as provided in subsections (b) and (c)”.
History: 1963, PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969, PL
11-45; 1970, PL 11-134.
11.0507 Section 482 amended and Section 483 added.
Repealed
by PL 16-87 § 4.
History: 1963, PL 8-1;
1965, PL 9-21; 1966, PL 9-52; 1969, PL 11-45; 1970, PL 11-134.
11.0508 Section
876 deleted.
Section 876, relating to alien residents of
History: 1963, PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969,
PL 11-45; 1970, PL 11-134.
11.0509 Section
881(a) (1) amended.
Section 881 (a)(1) relating to the imposition of tax on
income of foreign corporations not connected with American Samoa business is
amended by inserting after the word “dividends” the following: “(other than
dividends paid by a corporation organized under the laws of one of the states
of the United States to a corporation organized under the laws of one of the
states of the United States)”.
History: 1978, PL 15-87 § 1.
11.0510 Paragraph (e) added to Section 881.
Section 881 relating to the tax on income of foreign
corporations not connected with
“(e) Motion picture rentals. In the case of revenues
derived by foreign corporations from the rental of motion pictures to
businesses in
History: 1979, PL 16-23 § 1.
11.0511 Paragraph (f) added to Section 881.
Section 881 relating to the tax on income of foreign
corporations not connected with
“(f) Reinsurance Premiums—In the case or premiums derived by foreign
corporations from reinsurances in respect of insurance business transacted in
History: 1979, PL 16-38 § 1.
11.0512 Section 931 deleted.
Section 931, relating to income from sources within
possessions of the
History: 1963, PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969, PL 11-45; 1970,
PL 11-134.
11.0513 Section 932 deleted.
Section 932, relating to citizens of possessions of the
History: 1963, PL 8-1;
1965, PL 9-21; 1966, PL 9-52; 1969, PL 11-45; 1970, PL 11-134.
11.0514 Paragraphs (1) and (2) of Section 933 amended.
Paragraphs (1) and (2) of Section 933, relating to income from sources
within
History: 1963, PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969,
PL 11-45; 1970, PL 11-134.
11.0515 Section 1441(c) amended.
Section 1441 (c), relating to exceptions from withholding of tax on
nonresident aliens, is amended by adding the following new paragraph:
“Payments by the
History: 1963, PL 8-1;
1965, PL 9-21; 1966, PL 9-52; 1969, PL
11-45; 1970, PL 11-134.
11.0516 Section 1441(b)
amended.
Section 1441(b) relating to withholding of income
tax is amended by inserting after the word “dividends” the following: “(other
than dividends paid by a corporation organized under the laws of one of the
states of the United States to a corporation organized under the laws of one of
the states of the United States)”.
History: 1978, PL, 15-87 § 2.
11.0517 Paragraph (d) added
to Section 1442.
Section 1442 relating to the withholding of tax on
foreign corporations is amended by adding after paragraph (c) the following
paragraph:
“(d) Motion picture rentals. In the case of
revenues derived by foreign corporations from the rental of motion pictures to
businesses in American Samoa, there shall be deducted and withheld at the
source a tax equal to 15% thereof.
History: 1979, PL 16-23 § 1.
11.0518 Paragraph (e) added
to Section 1442.
Section 1442 relating to the withholding of tax
on foreign corporations is amended by adding after paragraph (d) the following
new paragraph:
“(e) Reinsurance Premiums—In the case of premiums
derived by foreign corporations from reinsurances in respect of insurance
business transacted in American Samoa there shall be deducted and withheld at
source a tax equal to 10% thereof.”
History: 1979, PL 16-38 § 1.
11.0519 Section 3401 amended.
Section 3401, relating to definitions for the
collection of income tax at source on wages, is amended to read as follows:
“SEC. 3401 —DEFINITIONS.
(a) Wages. For purposes of this chapter, the term “wages” means all
remuneration (other than fees paid to a public official) paid in cash for
services performed by an employee for his employer; except that such term shall
not include remuneration paid:
(1) For active service as a member of the Armed Forces of the
(2) For agricultural labor (as defined in section 3121 (g)); or
(3) For service not in the course of the employer’s trade or business
performed in any calendar quarter by an employee, unless the cash remuneration
paid for such service is $10 or more and such service is performed by an
individual who is regularly employed by such employer to perform such service.
For purposes of this paragraph, an individual shall be deemed to be regularly
employed by an employer during a calendar quarter only if:
(A) On each
of some 24 days during such quarter such individual performs for such employer
for some portion of the day service not in the course of the employer’s trade
or business; or
(B) Such
individual was regularly employed (as determined under subparagraph (A), by
such employer in the performance, of such services during the preceding
calendar quarter; or
(4) For
services for a government (other than
(5) For
services for
(6) For
services performed by a nonresident alien individual; or
(7)(A) For services for an employer (other than American
Samoa or any agency thereof) performed by a citizen of American Samoa, if, at
the time of the payment of such remuneration it is reasonable to believe that
such remuneration will be excluded from gross income under section 911; or
(B) For
services performed in a foreign country or in a possession of the United
States (other than American Samoa) by a citizen of American Samoa if, at the
time of payment of such remuneration, the employer is required by the law of
such foreign country or possession of the United States to withhold income tax
upon such remuneration; or
(C) For
services for an employer performed by a citizen or resident of American Samoa
within Puerto Rico, if it is reasonable to believe that during the entire
calendar year the employee will be a bona fide resident of Puerto Rico; or
(8) For
services performed by a duly ordained, commissioned, or licensed minister of a
church in the exercise of his ministry or by a member of a religious order in
the exercise of duties required by such order; or
(9) To, or
on behalf of, an employee or his beneficiary:
(A) From or
to a trust described in section 401(e) which is exempt from tax under section
501(a) at the time of such payment unless such payment is made to an employee of
the trust as remuneration for services rendered as such employee and not as a
beneficiary of the trust; or
(B) Under
or to an annuity plan which, at the time of such payment, meets the
requirements of section 401(a)(3), (4), (5), and (6); or
(10) For
services performed as a volunteer or volunteer leader within the meaning of the
Peace Corps Act of the
(b) Payroll period. For purposes of this chapter, the term
“payroll period” means a period for which a payment of wages is ordinarily made
to the employee by his employer, and the term “miscellaneous payroll period”
means a payroll period other than a daily, weekly, biweekly, semimonthly,
quarterly, semiannual, or annual payroll period.
(c) Employee.
For purposes of this chapter, the term “employee” includes an officer, employee,
or elected official of
(d) Employer.
For purposes of this chapter, the term “employer” means the person for whom an
individual performs or performed any services, of whatever nature, as the employee
of such person, except that:
(1) If the
person for whom the individual performs or performed the services does not have
control of the payment of the wages for such services, the term “employer”
(except for purposes of subsection (a)) means the person having control of the
payment of such wages;
(2) In the
case of a person paying wages on behalf of a nonresident alien individual,
foreign partnership, or foreign corporation, not engaged in trade or business
within American Samoa, the term “employer” (except for purpose of subsection
(a)) means such person.
(e) Number
of withholding exemptions claimed. For purposes of this chapter, the term
“number of withholding exemptions claimed” means the number of withholding
exemptions in a withholding exemption certificate in effect under section
3402(f). If no such certificate is in effect, the number of withholding
exemptions claimed shall be considered to be zero, and the employer shall
deduct and withhold upon any wages a tax equal to 1 8 percent of such wages.
History: 1963, PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969,
PL 11-45; amd 1970, PL 11-134.
11.0520 Section
3402(a) amended.
Section 3402(a), relating to requirements of withholding
with respect to income tax collected at the source, is amended to read as
follows:
“(a) Requirement of withholding:
(1) Except
as provided in paragraph (2), every employer making payment of wages shall deduct
and withhold upon such wages a tax equal to 18 percent of the amount by which
the wages exceed the number of withholding exemptions claimed, multiplied by
the amount of one such exemption as shown in subsection (b)(l);
(2) If, based upon the information contained in an
employee’s exemption certificate, it appears that such employee will be
subject to the tax imposed by section 5 of chapter 1, every employer making
payment of wages to such individual shall deduct and withhold upon such wages a
tax equal to 2 percent of such wages.”
History: 1963, PL 8-1; 1965, PL 9-21; 1966, PL 9-52;
1969, PL 11-45; 1970, PL 11-134; amd 1980, PL l6-87 § 2.
Amendments: 1980 Changed
withholding tax from 2 1/2 percent to 2 percent in paragraph (2).
11.0521 Section
3402(c)(1) amended.
Section 3402(c)( 1), relating to wage bracket
withholding with respect to collection of income tax at source on wages, is
amended to read as follows:
“(c) Wage bracket withholding:
(1)(A) In lieu of the tax required to be deducted and withheld
under subsection (a)(l), the employer may elect to deduct and withhold upon
the wages paid to an employee a tax determined in accordance with the tables
provided in this subsection;
(B) In lieu
of the tax required to be deducted and withheld under subsection (a)(a), the
employer may elect to deduct and withhold upon the wages paid to an employee a
tax determined as one-ninth of the tax determined in accordance with the tables
provided in this subsection as if the number of withholding exemptions claimed
is zero.
History: 1963,
PL 8-1; 1965, PL 9-21; 1966, PL 9-52; 1969, PL 11-45; 1970, PL 11-1 34.
11.0522 Subsection (c), (f)(6), and (j) of
Section 3402 deleted.
Subsection (c), relating to included and excluded wages,
subsection (f)(6) relating to exemption of certain nonresident aliens, and
subsection (j), relating to noncash remuneration to retail commission
salesmen, of Section 3402, are deleted.
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0523 Section 3402(f)(1)
amended.
Section
3402(f)(1), relating to withholding exemptions, is amended by deleting “An employee
receiving wages shall on any day be entitled to the following withholding exemptions:”
and by inserting in lieu thereof “An employee receiving wages, with respect to
which a tax is required to be deducted and withheld under subsection (a)(1),
shall on any day be entitled to the following withholding exemptions”.
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0524 Section 3402(f)(2)
amended.
Section
3402(0(2) is amended to read as follows:
“(2)
Exemption certificates:
(A) On commencement of employment. On or before the
date of the commencement of employment with an employer, the employee shall
furnish the employer with a signed withholding exemption certificate relating
to the number of withholding exemptions which he claims, which shall in no
event exceed the number to which he is entitled, and stating whether it is
reasonable to believe that he will be subject to the tax imposed by section 5
of chapter 1;
(B)
Change of status: If, on any day during the calendar year, the number of
withholding exemptions to which the employee is entitled is less than the number
of withholding exemptions claimed by the employee on the withholding
exemption certificate then in effect with respect to him or it is no longer
reasonable to believe, notwithstanding the statement on such certificate, that
he will be subject to the tax imposed by section 5 of chapter 1, the employee
shall within 10 days thereafter furnish the employer with a new withholding
exemption certificate relating to the number of withholding exemptions which
the employee then claims, which shall in no event exceed the number to which
he is entitled on such day, and stating that it is reasonable to believe that
he will not be subject to the tax imposed by section 5 of chapter 1. If, on any
day during the calendar year, the number of withholding exemptions to which
the employee is entitled is greater than the number of withholding exemptions
claimed or it is reasonable to believe, notwithstanding a prior statement to
the contrary, that he will be subject to the tax imposed by section 5 of
chapter 1, the employee may furnish the employer with a new withholding
exemption certificate relating to the number of withholding exemptions which
the employee then claims, which shall in no event exceed the number to which he
is entitled on such day, and stating that it is reasonable to believe that he
will be subject to the tax imposed by section 5 of chapter 1;
(C) Change of status which affects next calendar
year: If, on any day during the calendar year, the number of withholding exemptions
to which the employee will be, or may reasonably be expected to be, entitled at
the beginning of his next taxable year under subtitle A is different from the
number to which the employee is entitled on such day or it appears that the
expectation may change as to the imposition of tax under section 5 of chapter
1, the employee shall, in such cases and at such times as the Governor or his
delegate may by regulations prescribe, furnish the employer with a withholding
exemption certificate relating to the number of withholding exemptions which
he claims with respect to such next taxable year, which shall in no event
exceed the number to which he will be, or may reasonably be expected to be, so
entitled, and stating whether it will be reasonable to believe that he will be
subject to the tax imposed by section 5 of chapter 1.
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0525 Adds (7) to Section
3402(f).
Section
3402(f) is amended by adding the following new paragraph:
“(7)
Zero withholding exemptions: An employee receiving wages, with respect to which
a tax is required to be deducted and withheld under subsection (a)(2), shall
not be entitled to any withholding exemptions.”
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0526 Section 3404
amended.
Section
3404, relating to return and payment by governmental employer, is amended to
read as follows:
“SEC. 3404—RETURN
AND PAYMENT BY GOVERNMENTAL EMPLOYER: If the employer is American Samoa, the
return of the amount deducted and withheld upon any wages may be made by an
officer or employee of American Samoa having control of the payment of such
wages, or appropriately designated for that purpose.”
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0527 Adds (33) to Section
7701(a).
Section
7701(a), relating to definitions, is amended by adding the following new paragraph:
“(33)
Citizen of
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0528 Chapter 2 deleted.
Chapter
2, relating to tax on self-employment income, is deleted.
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0529 Chapter 4 deleted.
Chapter
4, relating to rules applicable to recovery of excessive profits on government
contracts, is deleted.
History: 1963, PL 8-1; 1965,
PL 9-21; 1966, PL 9-52; 1969, PL 11-45; amd 1970, PL 11-134.
11.0530 Sections 43 and 3507
deleted.
Section
43, relating to the earned income credit, and Section 3507, relating to advance
payment of the earned income credit by employers, are deleted for all tax years
beginning after
History:
1980, PL 16-78 § 1; amd 1980, PL 16-87 § 2.
Amendments: 1980 Added provision relating to Section 3507.
11.0531 Renumbers Section
221 to 222 and adds new Section 221.
Section
221, relating to cross-references with respect to additional itemized deductions
for individuals is redesignated as Section 222. New Section 221 is added to
read:
“SEC.
221. STUDENT TUITION DEDUCTION
A
taxpayer may deduct from his adjusted gross income, if he elects to itemize his
deductions, all cost for tuition paid in the current taxable year for the
education of a dependent who is attending either public or private elementary
school, a high school, a college, university, or graduate school anywhere in
the
History: 1980, PL 16-87 § 2;
and 1988, PL 20-51.
.
11.0532 Section 457(d) (1)
amended.
Section
457 (d) (1) providing definitions is amended to read:
“(1)
State. The term “state” means a State, a Territory or the
11.0533 Partial recoupment of corporate taxes.
(a)
Section 11(b), relating to the amount of tax
imposed on corporations for taxable years beginning on and after
11(b) Amount of
tax.
(1) 15 percent of so much of the taxable income
as does not exceed $50,000,
(2) 25 percent of so much of the taxable income as
exceeds $50,000 but does not exceed $75,000,
(3) 34 percent of so much of the taxable income
as exceeds $75,000 but does not exceed $650,000, and
(4) 44 percent of so much of the taxable income
as exceeds $650,000.
In the
case of a corporation which has taxable income in excess of $100,000 for any
taxable year, the amount of tax determined under the preceding sentence for
such taxable year shall be increased by the lesser of (a) 5 percent of such
excess or (b) $11,750.
History: 1988, PL
20-51; amd 1989, PL 21-8.
11.0534 Maximum tax imposed upon corporations.
Notwithstanding the provisions of section 11.0533, the maximum
amount of income tax imposed in a taxable year upon any corporation operating
under a certificate of exemption issued pursuant to the tax incentives for
businesses act, section 11.1601 et seq., shall not exceed the amount of income
tax which would have been imposed upon such corporation in such year under the
provisions of this title, as in effect on December 31, 1986 (without regards to
the Tax Reform Act of 1986, U.S. Public Law No. 99-514) and as applied in
accordance with the terms of the certificate of exemption issued to such
corporation."
History: 1988, PL
20-51.
Sections:
11.0601 Definitions.
11.0602 Machine and device tax
imposed.
11.0603 Responsibilities of
owners.
11.0604 Penalties.
11.0605 Funds for student financial aid.
11.0601
Definitions.
As used in this chapter:
(a) "Coin
operated device" means any mechanical, electrical or electro-mechanical
machine or device operated by insertion of a coin, coins or token or tokens,
which is capable of any of the following:
(1) Returning to a person operating the device any
merchandise, food item, cigarettes or other items of value intended for
personal use, not including postage stamps;
(2) Providing to
a person operating the device an opportunity to engage in any video amusement
game including pinball machines;
(3) Use by children for rides or other amusement: or
(4) Providing to the person using the
device a service such as photograph, phonograph, or other music-producing
device.
(b) "Machine
owner or operator" means a person, corporation, partnership or business
entity which:
(1) owns a coin
operated machine or device, or
(2) by agreement
with the owners thereof operates the equipment in the Territory.
History: 1988, PL 20-84.
11.0602 Machine and device tax imposed.
An annual tax is imposed for
the licensing of coin operated devices as follows:
(a) on each video amusement game,
including pinball machines, fifteen dollars ($15.00);
(b) on each
coin-activated photograph, phonograph or other music producing machine,
twenty-five dollars ($25.00);
(c) on each
coin-activated vending machine that dispenses merchandise, food items, cigarettes
or other items intended for personal use, but not including postage stamps, ten
dollars ($10.00);
(d) on each
coin-activated riding machine designed for use by children, fifteen dollars
($15.00);
History: 1988, PL 20-84; amd 1991, PL 22-19; 1995, PL
24-3.
11.0603 Responsibilities of owners.
(a) Within thirty
days after this law goes into effect, or within thirty days after purchasing or
importing into the Territory any coin operated device, the owner of a coin
operated device must obtain, from the tax office, a numbered license sticker
indicating that the yearly tax has been paid in full for each device which he
owns or operates. The license sticker is
to be applied to each device in a visible location so that tax office employees
making an inspection can readily see if the tax has been paid.
(b) The tax for each year is due by the fifteenth
day of January. If the tax on any
machine becomes due during any month other than January, the owner or operator
shall be liable for a proportional share of the full tax calculated for the
months remaining in the year.
(c) Machine
owners and operators must maintain records indicating when each machine is
purchased or sold, the full name of the seller or buyer, and the address of the
seller or buyer.
History: 1988, PL 20-84.
11.0604 Penalties.
(a) Violation of any of the
provisions of this chapter is a class D felony.
(b) In addition
to any other penalties imposed by this section, the Tax Office may fine the owner
or operator of coin operated machines or devices ten percent (10%) of the
annual tax for each month that the tax on a machine has not been paid.
(c) Any machine
or device possessed or imported in violation of this section shall be subject
to seizure and forfeiture.
(d) If the tax is more than one month overdue,
the Tax Office may confiscate the machine or device and retain possession until
the tax and all fines are paid in full.
History: 1988, PL 20-84.
11.0605 Funds for student financial aid.
The proceeds of taxes and fees collected under authority
of this chapter shall be deposited in the general fund earmarked for student
financial aid.
History: 1988, PL 20-84.
Chapters 07-09
(RESERVED)
Chapter 10
Sections:
11.1001 Imposition-Basis for
computation-Conditional release.
11.1002 Amount of tax on certain items.
11.1002.1 Cigarette excise tax—Violation—Penalty.
11.1003 Emergency tax power of Governor.
11.1003.1 Exemption for specially-Equipped motor vehicles.
11.1004 Customs regulations applicable.
11.1020 Abolition of customs duties on imports.
11.1021 Authority to
reimpose import duties.
11.1031 Repealed.
11.1041 Soft drink tax-Levy-Rate.
11.1042 Soft drink
tax-Attachment of tax liability.
11.1043 Soft drink tax-Report and payment.
11.1044 Soft drink tax-Export drawback of taxes
paid.
11.1045 Soft drink tax-Violation-Penalty.
Research
Guide: For provisions on refund of duties or excise
taxes, see 27.1023.
11.1001 Imposition-Basis
for computation- Conditional release.
(a) An
excise tax shall be levied and paid at the point of entry, on the items listed
in 11.1002, except those items imported by the United States Government.
(b)
The basis for computing the tax is the purchase price of the items, except for
certain petroleum products, and shall include costs, charges, and expenses
incident to placing the items in condition, packed and ready for shipment to
(c) All items released by customs officers as duty
free at the time of entry shall be entered as conditionally duty free and
subject to duty if within 90 days of entry it is discovered that the items
should have been taxed.
History: 1967, PL
10-23; 1968, PL 10-60; amd 1987, PL 20-29 § 5; 1990, PL 21-40; amd 2001, PL
27-16.
Amendments 1987
Added “conditional release” to section title.
Subsection (a): deleted
“effective
Subsection (b): substituted “and shall include” for “for which the basis
shall be gallons”: added new sentence after “
Subsection (c): added.
2001 Subsection (a):
deleted words “government or”.
Case
Notes:
Excise tax on imported vehicles has rational
basis in desire of Fono to maintain beauty of islands and will be upheld by
court. Absent adoption of USC provisions relating to exercise tax rules,
chapter will be implemented in its own terms. Letuli v. Government of
11.1002 Amount
of tax on certain items.
(a) The tax on each item is:
(1) beer, malt extract, alcoholic beverage,
tobacco products and smoking accessories:
(A)
one hundred ninety percent of the basis of beer as defined in 27.0501(6), and
malt extract, except that any person 21 years of age or over may bring into American
Samoa tax free an amount of any alcoholic beverage as defined in 27.0501(1) or
27.0501(6) not to exceed 1 liter per trip if such alcoholic beverage is for his
personal use and consumption and not for resale; and except further that any
alcoholic beverage and tobacco products brought into American Samoa for export
at the duty free shop at Pago Pago International Airport is also tax free; one
hundred fifty percent (150%) of the basis of beer or malt extract shall be
deposited in the general fund and shall be available for appropriation by the
Legislature; and forty percent (40%) of the basis of beer or malt extract shall
be deposited in the general fund in an account earmarked for and dedicated to
the repayment of the government loan approved in 7.1444.3. Upon full repayment of said loan, the
assessment and collection of this forty percent (40%) tax shall be repealed;
(B) alcoholic beverages as defined in
27.0501(1) shall be taxed as follows:
fifteen (0.15) cents per one percent (1%) of alcohol by weight per
liter, with a minimum tax of two dollars ($2.00) per liter.
Of the revenues collected from the tax on
alcoholic beverages, fifty percent (50%) shall be appropriated to fund the
Feleti Barstow Public Library; twenty-five percent (25%) shall be appropriated
to fund the Office of Administrative Law Judge; twelve and one-half percent
(12.5%) shall be deposited in the general fund and shall be available for
appropriation by the Legislature; and twelve and one-half percent (12.5%) shall
be deposited in the general fund in an account earmarked for and dedicated to
the repayment of the government loan approved in 7.1444.3. Upon full repayment of said loan, the twelve
and one-half percent (12.5%) dedicated to repayment of the loan shall be
deposited in the general fund and shall be available for appropriation by the
Legislature.
(C) Twelve point five cents per cigarette, per
cigar, or per 10 grams of smoking tobacco, except that any person 21 years of
age or over may bring into American Samoa tax free tobacco products not to
exceed either 200 cigarettes or 100 cigars and or 2 kilograms of smoking
tobacco per trip if such tobacco products are for his personal use and
consumption and not for resale; and twenty percent (20%) shall be deposited in
an account earmarked for and dedicated to the repayment of the government loan
approved in 7.1444.3. Upon full
repayment of said loan, the assessment and collection of this twenty percent
(20%) tax shall be reverted into the general fund subject upon appropriation by
the Legislature.
(2) one
hundred fifty percent of the basis of firearms and firearm ammunition;
(3) motor vehicles:
(A) twenty-five percent of the basis of motor
bicycles, automobiles, trucks, and vans, to be used for commercial purposes;
(B) notwithstanding the provisions of paragraph
(A), the tax levied on motor bicycles automobiles, trucks, and vans, imported
into
(C)
No tax exemption, including that provided by Title 11, Chapter 16, shall
be granted for any motor vehicle. All
other motor vehicles not taxed under this subsection shall be subjected to the
tax under 11.1002(a)(7);
(4) petroleum products:
(A) thirty-five cents a gallon on fuel manufactured
for use in motor vehicles, other than diesel fuels, 1.5 cents of this to be
used for revenue for law enforcement costs and the driver’s training control
school and 10 cents of it to be placed in an earmarked revenue fund for road
maintenance;
(B) three and one-half cents a gallon on fuel
manufactured for use in diesel engines, other than aircraft fuels. An express exception is made for the purpose
of extending a full three and one-half cent excise tax credit for fuels which,
subject to verification by the Treasurer of American Samoa, were sold to any
commercial fishing vessel for the purpose of refueling. For purposes of this section, “Commercial
Fishing Vessels” shall be defined as all purse seiners and longliner vessels
actively engaged in commercial fishing in excess of five tons dead weight, plus
reefers of “Mother Ships” that are used to transship fish products, plus diesel
fuel tankers that provide fuel at sea to the commercial fishing vessels;
(C)
one and one-half cents a gallon on kerosene and similar petroleum products;
(D)
fifteen percent of the basis of lubricating oils;
(E) one
cent a gallon on jet and other aircraft fuels, to be placed in the enterprise
fund for the operation of
(F)
three cents a pound of liquified petroleum gas such
as butane and propane or mixtures; thereof, and ethane;
(G)
thirty-one and one-half cents per gallon, to be
collected by the petroleum supplier at the point of sale, on fuel manufactured
for use in diesel engines, excluding diesel fuel used by stationary boilers or
burners, stationary generators of electric power and marine vessels.
(5) forty percent of the basis of all construction
materials, as defined in 26.1501 et seq., which are of a lesser quality than
the standard grades established under such chapter;
(6) fifteen cents per 12 fluid ounces or fraction
thereof on all soft drinks or nonalcoholic carbonated beverages, to be applied
to the measure of the container in which it is offered for sale by the
importer.
(7) five percent of the basis of all items not
listed in subsections (a) (1) through (a)(6) of this section or exempted by
this section which are imported for commercial use or resale purposes. The revenues received from the three
percent excise tax shall be deposited in the general fund and shall be
available for appropriation by the Legislature, except that $500,000 is
appropriated for the student financial aid provided for in 11.0605.
(b) The minimum tax shall be 25 cents.
(c) Items otherwise taxable under subsection
(a)(1) and (a)(7) of this section are exempted from the taxes imposed by this
section when they are brought into American Samoa for export sale for
consumption outside American Samoa; provided that importation and sale of these
items are made pursuant to rules promulgated by the Treasurer under the
Administrative Procedures Act 4.1001 et seq., that require, among other things,
separate storage of these items clearly identified for export sale and a system
of delivery to the purchaser ensuring their exportation.
(d) Payment of the taxes imposed by this section
on items brought into
(e) The Treasurer shall promulgate rules under
the Administrative Procedures Act, 4.1001 et seq., to ensure that the taxes
imposed when the exception set forth in subsection (a)(7) of this section is
inapplicable are paid.
(f) One percent (1%) of the five percent excise
tax shall be earmarked for the repairs, renovations and upgrading of all public
schools facilities and equipment in
History: 1989, PL 21-26; 1990, PL 21-40, PL 21-30; 1995,
PL 24-3, PL 24-8; amd 1998, PL 25-28; 1999, PL 26-9, 26-13; PL 2000, 26-28;
2001, PL 27-5 amd 2001, PL 27-9; 2001, PL 27-17; 2003, PL 28-8, 2005, PL 29-4,
2005, PL 29-13.
By PL
15-82, 1978, 2¢ of the 3½¢ tax was
suspended from the period 18 Apri1 1978 through
By PL
16-22, 1979, 2¢ of the 3½¢ was suspended for 2 years, effective 18 April, 1979,
for vessels who are registered in American Samoa or who have contract to fish
for an American Samoa based cannery or operator.
Section 2 of PL 17-17 provides that, under
operation of (a)(3)(A), the 25 percent excise tax on parts and accessories for
all motor vehicles is suspended for 3 years commencing on August 26, 1981.
Section 1 of PL 17-40 provides that, under
operation of (a)(4), 1½ cents tax is suspended for one year, effective 1 July
1982, for vessels that are registered in American Samoa or that have a contract
to fish for an American Samoa based cannery or operator.
Section 1 (4)(A) of PL 27-17 provides for a 10¢ a
gallon increase on fuel and to be deposited to the general fund; Section (1)
adds a new paragraph (G), of which, 31-1½¢ per gallon of fuel manufactured for
use in diesel engines, excludes diesel fuel used by stationary boilers or
burners, stationary generators of electric power and marine vessels.
Case Notes:
Excise tax on imported vehicles has rational
basis in desire of Fono to maintain beauty of islands and will, be upheld by
court. Absent adoption of USC provisions relating to excise tax rules, chapter
will be implemented in its own terms. Letuli v. Government of
Meaning of “imported”, as used in this section’s
tax upon motor vehicles “imported into American Samoa for a personal or a
family use”, is not vague or ambiguous and covers motor vehicles the importation
of which is incidental as being consequent to other primary purposes, such as
a change of residence to American Samoa, Letuli v, Government, 4 ASR 830
(1973).
11.1002.1
Cigarette excise tax—Violation—Penalty.
A person,
firm, or corporation who fails to pay the excise tax for cigarette; at the
point of entry is subject to a Class A misdemeanor and/or $1,000 fine per
cigarette, per cigar or per 10 grams of smoking tobacco.
History: 2000, PL 26-28.
11.1003 Emergency tax power
of Governor.
The
Governor shall have emergency power to impose additional excise taxes on any
items to the list of taxable items or to reduce excise taxes on any item, if he
deems it desirable in the public interest, until the next meeting of the
Legislature.
History: 1967, PL
10-23.
Case
Notes:
Excise tax on imposed vehicles has rational basis
in desire of Fono to maintain beauty of the islands and will be upheld by court.
Absent adoption of USC provisions relating to excise tax rules, chapter will be
implemented in its own terms. Letuli v. Government of
11.1003.1 Exemption for specially-equipped motor vehicles.
Any motor
vehicle, which has been specially equipped and is imported by and for the
personal use of a severely disabled individual, is exempt from the excise tax
on the importation of a motor vehicle.
History: 1987, PL 20-3 § 1.
11.1004 Customs regulations
applicable.
The provisions
of 27.1001 et seq., apply to this chapter.
History: 1967, PL 10-23.
11.1020 Abolition of
customs duties on imports.
(a) There shall be no duties levied on imports
into
(b)
This section and 11.1021 and 11.1501 shall take
effect as of
History: 1967, PL 10-23.
11.1021 Authority to
reimpose import duties.
The
Governor is authorized to reimpose any import duty which existed before this
section and 11.1020 and 11.1501 were enacted if he determines that the level of
retail prices for the articles has not been reduced to the extent warranted by
the abolition of duties. It is the intent of this section that the benefit of
the abolition of duties shall accrue to the retail purchaser, and not to the
merchant.
History: 1967, PL 10-23.
11.1031 Hard liquor tax—Exemption—Disposition.
Repealed by PL 18-53.
11.1041 Soft drink
tax—Levy—Rate.
There
is levied and assessed upon, and there shall be collected from every business
engaged in the manufacture or production in American Samoa of any soft drink or
nonalcoholic beverage or syrup for use in the making or preparation of soft
drinks, in addition to all other applicable taxes, an excise tax which shall be
equal in rate to the duty imposed on the importation of such items into
American Samoa pursuant to 11.1020, l1.1021, and 11.1501.
History: 1963, PL 8-1.
11.1042 Soft drink
tax—Attachment of tax liability.
The
tax levied by this chapter shall attach at the time of the completion of the
process of manufacture.
History: 1965,
PL 9-15.
11.1043 Soft drink tax—Report and payment.
The
manufacture or producer shall prepare a quarterly report and pay to the government a tax
on all taxable soft drinks or syrups manufacture red during the quarter. The
tax shall be due and payable not more than 30 days following the end of any
particular quarter.
History: 1965, PL 9-15.
11.1044 Soft drink
tax—Export drawback of taxes paid.
There
shall be allowed to any applicant therefor a drawback of the full amount of the
tax paid under this chapter, exclusive of any penalties or interest, upon
fulfillment of the following conditions:
(1) that the taxable beverage manufactured or
produced in American Samoa has been consigned and duly delivered to a point outside
the Territory of American Samoa; and
(2) that the beverage so exported was not the
subject of any sale within American Samoa other than a transfer involving
substantially the entire stock-in-trade, goodwill and franchise or other rights
concerning the beverage upon which the tax was paid; and
(3) that the taxes have been fully paid to the
government; and
(4) that the applicant is a duly licensed
manufacturer or producer in
History: 1965, PL 9-15.
11.1045 Soft
drink tax—Violation—Penalty.
A
person, firm or corporation who knowingly violates 11.1041 through 11.1045 is
guilty of class B misdemeanor.
History: 1963, PL
9-15; amd 1980, PL 16-90 § 94.
Amendments: 1980 Amended to conform with penalties provided
for in Title 46, Criminal Justice.
Sections:
11.1101 Definitions.
11.1102 Imposition of
tax-Effective date.
11.1103 Rate of tax.
11.1104 Collection of tax.
11.1105 Exemption for items
imported for personal use.
11.1106 Tax on resale of exempted items.
11.1101 Definitions.
As used in this chapter
(a) “Resale” includes a sale, conditional sale,
regardless of later default, and foreclosure of a chattel mortgage.
(b)
“Secondhand items” refers to any motor vehicle, piece of machinery or household
appliance which has been sold at retail and actually put into use for any
period of time prior to being imported into American Samoa.
History: 1965, PL 9-8; 1967,
PL 10-24.
11.1102 Imposition of
tax—Effective date.
(a) There is levied and assessed, and there shall
be collected, in addition to all other applicable taxes, a special tax upon all
secondhand motor vehicles, machinery and household appliances imported into
American Samoa for resale.
(b) The tax shall take effect on
History: 1965, PL 9-8; 1967,
PL 10-24.
11.1103 Rate of tax.
The rate
of the tax shall be 30% of the price received by the importer upon resale, or 30% of the fair market
value of the item, as determined by the Treasurer or his delegate, if the
importer transfers the item for other than cash.
History: 1965,
PL9-8; 1967, PL 10-24.
11.1104 Collection of tax.
The
tax shall be forwarded to the Treasurer or his delegate within 20 days of the
transfer of the item, accompanied by a description of the goods, the date of
importation and the name of the carrier.
History: 1965, PL 9-8; 1967,
PL 10-24.
11.1105 Exemption for items
imported for personal use.
Any
person making a declaration that secondhand items being imported by him are
for his personal use shall have the items delivered to him without payment of
the tax.
History: 1965, PL 9-8; 1967,
PL 10-24.
11.1106 Tax on resale of
exempted items.
If any
item exempted from the tax pursuant to 11.1105 shall be resold within one year
of the date it is imported into American Samoa, or transferred for value
received, the seller shall declare the sale to the Treasurer or his delegate
and shall at that time pay to the government an amount equal to the tax
provided for in 11.1103.
History: 1965, PL 9-8; 1967,
PL 10-24.
Chapters
12—14
(RESERVED)
Chapter
15
Sections:
11.1501 Export duties.
11.1502 Repealed.
11.1501 Export duties.
During
the first 10 days of any calendar year, but not thereafter during that year,
the Governor may, after prior consultation and discussion with the exporters
substantially affected, impose an export duty applicable for all of that
calendar year on any article exported from
History: 1967, PL 10-23.
Research Guide: For provisions regarding the Industrial Incentive
Act, see 10.1501 et seq.
11.1502 Unprocessed fish
excise tax-Documentation-Funds earmarked-Violations.
Repealed by PL 20-2 7 § 1.
Sections:
11.1601 Purpose—Grant and extent
of tax exemptions.
11.1602 Promotion of incentive
program.
11.1603 Tax exemption board—
Composition.
11.1604 Application for tax
exemption certificate.
11.1605 Powers and duties of board
regarding tax exemptions.
11.1606 Governor’s powers
regarding tax exemptions.
11.1607 General requirements for
exemption.
11.1608 Contents of certificate—
Contract.
11.1609 Amendment of certificate.
11.1610 Limitation of exemption—Prior
exemptions.
11.1611 Transfer of certificate.
11.1612 Construction to avoid
double exemption.
11.1601 Purpose-Grant and
extent of tax exemptions.
(a) In order to establish a firm foundation for
self-government and to assist the people of
(b) A temporary exemption from the payment of
some or all taxes, duties, business license fees, and similar charges imposed
or levied by the government may be granted for the establishment or expansion
of a qualifying industrial or business enterprise as provided in this chapter.
(c) No exemption may be granted with respect to
income derived from or activities carried on outside of
(d) In no event shall the original period of tax
exemption exceed 10 years, and no extensions of the original period may be
granted. The tax exemption may be made to terminate earlier if the cumulative
amount of taxes forgiven equals 200% of noncurrent investment.
History: 1962. PL
7-37; 1963, PL 84.
Under provisions of Industrial Incentive Act, if
Tax Exemption Board and Governor find applicant is new business, full tax exemption
must be granted unless Governor makes affirmative finding that new business is
not in public interest RCAS 26.0101. Bottling Corporation of
11.1602 Promotion of
incentive program.
The
Department of Administrative Services shall promote the industrial incentive
program provided for in this chapter and shall provide such informational or
other related services as may be useful for that purpose.
History: 1962, PL
7-37; 1963, PL 84.
11.1603 Tax Exemption Board-Composition.
There
is established a Tax Exemption Board of 5 members, hereinafter called the
“Board”. The Board shall include the Treasurer of American Samoa, and 4
residents of
History: 1962,
PL 7-37; 1963, PL 8-4; amd 1979, PL 16-17 § 3.
Amendment: 1979
Deleted Attorney General from membership on and chairmanship of the Board, and
raised from 3 to 4 the residents to be on the Board and provided that they be appointed
by and serve at the pleasure of the Governor.
Reviser’s Comment: The preamble to PL 16-17, which amended this section. stated: The
Attorney General is presently a member of several Boards and Commissions by
statute. This is a carry-over from an era when the number of qualified persons
to perform special functions of this nature was limited, which is no longer
true. The Attorney General’s membership on Boards and Commissions raises
potential conflicts of interest, particularly when the Board or Commission is
conducting adjudicatory hearings and the Government is represented by legal
counsel Further, it curtails his role as legal advisor to these Boards and
Commissions. Accordingly, this legislation is intended to eliminate these
problems in the future.”
11.1604 Application
for tax exemption certificate.
All
applications for tax exemption certificates or amendments to certificates
shall be filed with the Board.
History: 1962, PL
7-37; 1963, PL 8-4.
11.1605 Powers and duties
of Board regarding tax exemptions.
The
Board, acting by vote of any 3 members, shall have the following powers and
duties:
(a)
The Board shall give public notice of, and conduct public hearings on, all applications
for a certificate of tax exemption, and shall recommend to the Governor whether
he should grant or deny an application.
(b) The Board shall recommend to the Governor that he
grant a certificate of tax exemption if it is satisfied that:
(1) the industrial or business activity engaged in
or expanded by the applicant will promote the public interest by furthering the
economic development of
(2)
the establishment or expansion of the activity in
(3)
the applicant qualifies under the provisions of 11.1607.
(c) The Board shall submit to the Governor its
recommendations with respect to applications for amended certificates.
(d) The Board shall recommend to the Governor that
he revoke a certificate of tax exemption if it finds, after due notice and
hearing, that the grantee of a tax exemption certificate:
(1)
has failed to maintain substantial compliance with the conditions of the tax
exemption certificate or any regulation issued under this chapter;
(2) has engaged in a business not named in the
certificate without applying for a required amended certificate;
(3) has failed to carry on the business named in
the certificate;
(4) has transferred a portion of his business
without obtaining a required amended certificate;
(5) In the case of a corporation, has been
dissolved, or has filed or is the subject of a petition in, bankruptcy which
has been approved.
(e) The Board shall investigate all applications
for tax exemptions and determine compliance with the provisions of this chapter
or regulations issued pursuant to this chapter.
(f) In connection with any hearings or
investigations required by the provisions of this chapter or of any rules and
regulations issued pursuant to this chapter, the Board may subpoena witnesses,
records, and books and inspect properties and facilities with respect to which
a certificate of a tax exemption has been granted or is requested.
(g) The Board may request and obtain from the
Department of Administrative Services such auditing and other services as it
may consider necessary in connection with the performance or exercise of its
powers and duties.
History: 1962, PL
7-37; 1963, PL 8-4.
11.1606 Governor’s powers regarding
tax exemptions.
(a) The Governor of
(1) After considering recommendations of the Board
submitted within a reasonable time, he may deny, grant or amend a certificate
of tax exemption, with such terms and conditions as he considers appropriate.
(2) He
may revoke any tax exemption certificate for the reasons stated in subsection
(d) of 11.1605.
(3) He
may renew a tax exemption certificate, in whole or in part, if he believes
that the industrial or business enterprise is contributing to the economic
development of
(4) He
may adopt such rules, regulations and reporting requirements as he deems necessary
for the purposes of this chapter.
(b)
All recommendations of the board relating to the qualification of applicants or
the issuance, denial, revocation, modification, amendment, suspension or
transfer of certificates of tax exemption shall be subject to the approval of
the Governor; and no certificate, or any revocation, modification, suspension,
amendment, or transfer thereof shall be deemed valid without the written
approval of the Governor.
History: 1962, PL 7-37; 1963,
PL 84.
11.1607 General
requirements for exemption.
In order
to qualify for a certificate of tax exemption, an industrial or business
enterprise must:
(1) be
an enterprise owned by a person who is, or a partnership one of whose members
is, a resident of American Samoa; or be a corporation created under the laws
of American Samoa or a foreign corporation authorized by the laws of American
Samoa to do business in American Samoa;
(2) undertake to employ, at the prevailing wage
rate, or at not less than the minimum wage rate provided by law, residents of
History: 1962, PL
7-37; 1963, PL 84.
11.1608 Contents of
certificate—Contract.
(a) A certificate of tax exemption shall be issued
in the name of the government by the Governor. It shall specify:
(1) the name of the grantee;
(2)
the business or industrial activity which qualifies for tax exemption;
(3)
the taxes, fees, duties, or levies from which the grantee is exempted;
(4)
the dates on which the tax exemption begins and ends;
(5) the
date by which any required financial investment shall have been completed by
the grantee;
(6) a
statement that the grant of tax exemption is conditioned upon the substantial
performance and observance of all requirements contained in the certificate, in
this chapter, and in any regulations issued under this chapter, and that in the
event of nonperformance all taxes shall be due and payable;
(7) a
statement that the certificate of tax exemption either does or does not include
an exemption from any new type of tax, fee, duty, or levy that may be imposed
by the government in the future;
(8)
such other conditions as the Governor shall deem applicable or appropriate, as
are not inconsistent with the provisions of this chapter.
(b)
Each certificate of tax exemption granted under the provisions of this chapter
shall be regarded as a contract between the government and the grantee, and
the government declares that it will not adopt any legislation or take any
action that would impair or limit the obligation of such contract.
History: 1962, PL 737; amd 1963, PL 8-4.
11.1609 Amendment of certificate.
(a)
If, after a tax exemption certificate has been issued, the grantee engages in
any business in
(b) An
amended certificate shall be issued, which may exclude from or extend to the new
business some or all of the tax exemption initially granted. The amended
certificate shall be effective as of the beginning of the year in which the new
business accounted for more than 5% of the gross sales receipts.
(c) A failure to apply for an amended certificate
in accordance with the provisions of this section may be deemed substantial
non-performance of a condition of the tax exemption certificate.
History: 1962, PL
7-32; amd 1963, PL 8-4.
11.1610 Limitation of exemption—Prior
exemption
(a) If at the time of application the grantee is
engaged in more than one business or industrial activity, the certificate of
tax exemption may limit the tax exemption to the portion of the business which
qualifies for tax exemption under the provisions of this chapter. The full
amount of taxes, fees, duties, and levies now or hereafter imposed by the
government shall remain payable with respect to business activities not
enumerated in the certificate.
(b)
Nothing in this chapter permits the granting of a tax exemption certificate to
any person, partnership, or corporation with respect to any industrial or
business activity that was granted a tax exemption prior to 1963.
(c) For the purpose of this chapter, no physical
plant, facilities, inventory or any other item of investment, upon the basis of
which tax exemption was granted prior to this amendment of the Industrial
Incentive Act, shall be taken into consideration for the purpose of determining
the minimum investments required for qualification under this chapter.
(d)
Subsections (b) and (c) shall not apply where written commitments have been
made with respect to the grant of a tax exemption but the tax exemption
certificate has not been issued.
History: 1962, PL 7-37;
1963, PL 8-4.
11.1611 Transfer of
certificate.
(a) A certificate of tax exemption granted under
the provisions of this chapter may be transferred, for the unexpired portion of
any tax-exempt periods provided in the certificate, to another person, partnership
or corporation which qualifies under 11.1607, and which succeeds the grantee in
carrying on, or in operating, substantially all of the business which
originally qualified for tax exemption. Thereafter, the transferor of the
certificate shall lose all tax exemption under this chapter and shall be
subject to the operation of the tax laws of
(b) If the grantee of a certificate of tax
exemption transfers to a corporation in which it owns at least 51% of the
outstanding common stock and which qualifies under 11.1607, less than
substantially all of the business which originally qualified for tax exemption,
an amended certificate shall be issued indicating the specific tax exemptions
which are transferred from one party to the other, or both will apply to both
parties for the unexpired term. If such transfer is made to a person,
partnership or corporation in which the transferor does not own 51% of the
outstanding common stock, an amended certificate may be issued to the
transferor in the discretion of the Governor, on such terms and conditions as
he deems warranted, after considering the alteration or reduced volume of the
transferor’s business and investment. The transferee may receive a new
certificate only if he applies and qualifies under the other provisions of this
chapter.
History: 1962, PL 7-37; 1963,
PL 8-4.
11.1612 Construction to
avoid double exemption.
The
provisions of this chapter shall be strictly construed to discourage and
frustrate the use of any subterfuge, device or scheme, whether by means of
sale, transfer, assignment of assets or interests, or otherwise, designed to
secure a tax
exemption for any person, partnership, or corporation previously granted or
enjoying such exemption upon the basis of the same or substantially the same
investment.
History: 1962, PL 7-32; 1963, PL 8-4.
Chapter 17
INDUSTRIAL
DEVELOPMENT FINANCING
Sections:
11.1701 Repealed.
11.1702 Repealed.
11.1703 Repealed.
11.1704 Repealed.
11.1705 Repealed.
11.1706 Repealed.
11.1707 Repealed.
11.1701 Legislative findings and purposes.
Repealed
by PL 19-69 § 2.
11.1702 Definitions.
Repealed
by PL 19-69 § 2.
11.1703 Establishment of
Repealed
by PL 19-69 § 2.
11.1704Authorization to issue bonds.
Repealed
by PL 19-69 § 2.
11.1705 Powers
of the Commission.
Repealed
by PL 19-69 § 2.
11.1706 Legal effect of this chapter.
Repealed by PL 19-69 § 2.
11.1707 Immediate effect.
Repealed
by PL 19-69 § 2.
Chapter 18
FOREIGN
SALES CORPORATIONS
Sections:
11.1801 Legislative findings and
purposes.
11.1802 Definitions.
11.1803 Exemption of Foreign
Sales Corporations from American Samoa Income Tax.
11.1804 Exemption of Foreign Sales Corporation shareholders.
11.1805 Exemption of Foreign Sales Corporations from withholding taxes.
11.1806 Exemption
of Foreign Sales Corporations from excise taxes, customs duties, etc.
11.1807 Qualifying
American Samoa Foreign Sales Corporations.
11.1808 Election
of status as qualifying American Samoa Foreign Sales Corporation.
11.1809 Ten-year exemption.
11.1810 Rules and regulations.
11.1811 Franchise
tax on qualified American Samoa Foreign Sales Corporations.
11.1812 Modification
of corporation law as regards qualifying American Samoa Foreign Sales
Corporations.
11.1801 Legislative
findings and purposes.
The
Legislature Finds and declares that:
(1) The United States Congress has established, in
Title VIII of the Tax Reform Act of 1984, various tax incentives to encourage
foreign export trade by United States companies and has provided that
tax-favored Foreign Sales Corporations may be established in possessions of the
United States, including American Samoa, and that no tax shall be imposed by
these possessions on foreign trade income derived before 1 January 1987;
(2) It is in the best interests of American Samoa
to support export activity by United States companies and to attract United
States companies which are engaged in export trade to establish Foreign Sales
Corporations in American Samoa, and that special tax incentives are necessary
for this purpose;
(3) There is a need to attract to American Samoa
economic activity of the type which is incident to the establishment of Foreign
Sales Corporations, including banking, legal, financial, and real estate
services; and
(4) In order to improve the prosperity and welfare
of the Territory and its inhabitants, it is desirable to broaden the tax base
of the Territory by providing for a corporation franchise tax and encouraging
the organization of new corporations within the Territory which are subject to
such corporation franchise tax.
History: 1984, PL 18-54 § 1.
11.1802 Definitions.
As used
in this chapter, unless the context clearly indicates otherwise:
(a) The terms “Foreign Sales Corporations”,
“FSC”, “Small FSC”, and “Foreign Trade Income” have the same meaning as are
assigned those terms in Subpart C of Part III of Subchapter N of Chapter 1 of the United
States Internal Revenue Code of 1954, as amended (relating to income from
sources outside the United States); the term “FSC” shall include “Small FSC”
unless otherwise indicated;
(c)
The term “Internal Revenue Code” means the United
States Internal Revenue Code of 1 954 (Title 26, United States Code), as
amended.
History: 1984, PL 18-54 § 1.
11.1803 Exemption of Foreign Sales Corporations from
A
corporation which is a Qualifying American Samoa Foreign Sales Corporation
(within the meaning of 11.1807) for any taxable year is exempt from the payment
of corporation income taxes on its net foreign trade income for that taxable
year.
History: 1984, PL 18-54 § 1.
11.1804 Exemption of Foreign Sales Corporation
shareholders.
No tax
shall be imposed pursuant to sections 871(a)(l) and 881 of the Samoa Income
Tax Act upon citizens and residents of the United States and upon corporations
organized under the laws of any state of the United States with respect to
items of income realized from sources within American Samoa from Qualifying
American Samoa Foreign Sales Corporation (within the meaning of 11.1807) of
which such citizens, residents or corporations are shareholders.
History: 1984, PL 18-54 § 1.
11.1805 Exemption of Foreign
Sales Corporations from withholding taxes.
A
corporation which is a Qualifying American Samoa Foreign Sales Corporation
(within the meaning of 11.1807) is exempt from the obligation imposed by sections
1441 and 1442 of the Samoan Income Tax Act to withhold the tax imposed by
sections 871(a) and 881 of the Samoan Income Tax Act on items of income of
United States citizens and residents, or corporations organized under the law
of any state of the United States, which are shareholders of the FSC.
History: 1984, PL 18-54 § 1.
11.1806 Exemption of Foreign
Sales Corporations from excise taxes, customs duties, etc.
A
corporation which is a Qualifying American Samoa Foreign Sales Corporation
(within the meaning of 11.1807) is exempt from all excise taxes on imports
imposed under chapter 10, Title 11, A.S.C.A., all excise taxes on exports imposed
under chapter 15, Title 11, A.S.C.A., and all other customs duties on imports.
History:
1984, PL 18-54 § 1.
11.1807 Qualifying
(a) For purposes of this title, the term of
Qualifying American Samoa Foreign Sales Corporation means a corporation which
satisfies the following requirements:
(1) It is a Foreign Sales Corporation within the
meaning of section 992 of the Internal Revenue Code of 1954, as amended, and
otherwise satisfies the requirements of Subpart C of Part III of Subchapter N
of Chapter 1 of the Internal Revenue Code of 1954, as amended;
(2) It was created or organized under the laws of
(3) At
all times during the taxable year, it maintained a bank account in American
Samoa and all dividends, legal and accounting fees, and salaries of officers
and members of the board of directors of the corporation disbursed during the
taxable year are disbursed from the bank account; provided, however, that this
requirement does not apply to a Qualifying American Samoa Foreign Sales
Corporation that also qualifies as a small FSC;
(4) It has not at any time during the taxable year
engaged within
(5) It
was not granted a tax exemption from the Government of American Samoa pursuant
to the provisions of chapter 16, Title II, A.S.C.A., prior to the effective
date of this chapter; and
(6) It
has made an election (at the time and in the manner provided in 11.1808) which
is in effect for the taxable year to be treated as a Qualifying American Samoa
Foreign Sales Corporation.
History: 1984, PL 18-54 § 1.
11.1808 Election of status
as Qualifying American Samoa Foreign Sales Corporation.
(a)
Time for Making. An election by a corporation to be treated as a Qualifying
American Samoa Foreign Sales Corporation under 11.1807 shall be made by such
corporation for a taxable year at any time during the period beginning 60 days
immediately preceding and ending 60 days immediately succeeding the beginning
of the taxable year except that the Tax Manager of American Samoa, may consent
to and designate the making of an election at other times.
(b) Manner of Election. An election under
subsection (a) shall be made by filing a letter electing Qualifying American
Samoa Foreign Sales Corporation status with the Tax Manager of
(c) Effect of Election. If a corporation makes an
election under subsection (a), then the provisions of this chapter apply to
the corporation for the taxable year which the corporation elected and for all
succeeding taxable years until the election is terminated.
(d) Termination of Election. An election under
this section may be terminated by revoking the election for any taxable year of
the corporation after the first taxable year in which the election is effective. A termination of election under
this paragraph is effective;
(1) for the taxable year in which made, if made at
any time during the first 90 days of such taxable year; or
(2) for
the taxable year following the taxable year in which made, if made after the
close of such 90 days, and for all succeeding years of the corporation.
Termination is made by filing with the Tax Manager, Government of American
Samoa,
History: 1984, PL 18-55 § 1.
11.1809 Ten-year
exemption.
Upon
application to the Tax Exemption Board, a qualifying American Samoa Foreign
Sales Corporation which incorporates before
History: 1984, PL
18-54 § 1.
11.1 810 Rules
and regulations.
The
Tax Manager of
History: 1984, PL 18-54 § 1.
11.1811 Franchise tax on Qualified
(a) Effective
(b)
The amount of the FSC Franchise Tax shall be $2,500 per annum; provided,
however, that in the case of a Qualified American Samoa Foreign Sales
Corporation that qualifies as a Small FSC the tax shall be $500 per annum.
(c)
The FSC Franchise Tax for the first taxable year is payable on the date of incorporation
of the Qualifying American Samoa Foreign Sales Corporation and for each taxable
year thereafter is
payable on the first day of the month in which the anniversary of incorporation
occurs.
History: 1984, PL 18-54 § 1.
11.1812 Modification of corporation
law as regards Qualifying
(a) So
long as a corporation is a Qualifying American Samoa Foreign Sales Corporation
(within the meaning of 11.1807) and otherwise satisfies the requirements of
this chapter, the Governor of American Samoa shall not act pursuant to 30.0102
to revoke, set aside, or alter the corporation’s certificate of incorporation.
(b) The requirement of 30.0105 that a corporation
must maintain its principal place of business in
History: 1984, PL 18-54 § 1.
Chapter 19
Sections:
11.1901 Legislative findings and
purposes.
11.1902 Definitions.
11.1903 Establishment of
American Samoa Economic Development Authority.
11.1904 Authorization to issue
bonds.
11.1905 Powers of the authority.
11.1906 Miscellaneous
provisions.
11.1907 Legal effect of this
chapter.
11.1901 Legislative findings and purposes.
(a) The Legislature
finds and declares that:
(1) agriculture, shipping, tourism, fishing,
maritime, economic development and related business industries, among others,
are vital to the economy of the Territory and the welfare of the people, and
need to be enhanced and expanded to improve the economic and fiscal position
of the Territory;
(2)
there is a need to enhance other economic activity in the Territory by
attracting manufacturing development, business enterprise management, and other
activities conducive to economic promotion, in order to provide a stronger,
more balanced, and stable economy in the Territory, while providing for the
health and safety of the people;
(3) in order to improve the prosperity and welfare
of the Territory and its inhabitants, to improve and expand living and working
conditions, to promote the energy independence of the Territory, and to
increase purchasing power and opportunities for gainful employment, it is
necessary and in the public interest to facilitate the financing of capital
projects provided for in this chapter.
(4)
the economic stability and well-being of the people of American Samoa will be
enhanced by providing affordable health care facilities for the benefit of its
citizens, by providing educational facilities of every nature and kind by
providing capital improvements of every kind and nature for the people of
American Samoa and by providing financial assistance and capital facilities to
agencies of the government;
(5) there exists severe economic instability and
distress in traditional national and international markets for goods and
services produced by the people of American Samoa: this instability and
distress has caused serious economic distress to and among the people of
American Samoa and is manifest in the extraordinarily high levels of
unemployment and in the unavailability and rapidly rising costs of housing for
elderly persons, disabled persons, existence of these conditions is inimical to the
public health, general welfare, safety, morals and economic security of the
people of American Samoa;
(6) the housing inventory in American Samoa needs
immediate improvement, for there exists in American Samoa unsanitary, unsafe
and overcrowded housing, blighted commercial and residential areas, as well as an acute shortage of safe,
sanitary dwellings for person of low and moderate income which cannot be
relieved by private enterprise alone, and the provision and financing of
decent, safe and sanitary dwelling accommodations for person of low and
moderate income are public purposes and a central objective of the government;
the American Samoa Economic Development Authority should be vested with the
necessary powers and responsibilities to facilitate the housing goals
specifically stated for American Samoa in Public Law 98-454, 5 October 1984, to
initiate a housing program for American Samoa and to include the Territory in
existing federal housing programs.
(b) For the above reasons the Legislature further
finds and declares that there exists in American Samoa urgent and severe need
to provide the means and methods to provide financing and other programs to:
(1) complement the services of
(2)
restore and revitalize existing apiculture, shipping, tourism, fishing,
maritime, economic development and related businesses and industries for the
purposes of retaining and expanding employment within
(3) promote and target resources of
(4) eliminate the shortage of decent, safe,
sanitary and affordable residential housing for elderly and disabled persons
and families of low and moderate income in
(5)
remedy unsafe and unsanitary housing conditions that are injurious to the
public health, safety and welfare;
(6)
remove blighted areas;
(7) obtain
all pertinent housing and urban development assistance and financing for
(8)
assure the development of reliable, affordable, efficient and environmentally
compatible sources of energy for all types of public and private consumption;
(9) provide health care facilities for the benefit
of the people of
(10)
provide capital facilities for the benefit of the people of
(11)
provide educational facilities for educational institutions within
(12)
provide for financing of facilities for agencies of the government; and
(13)
assist private enterprise to obtain loans or other financial assistance in the
privatization of governmental operations.
(c) It
is hereby declared to be the public policy and responsibility of American Samoa
to promote the health, general welfare, safety and economic security of its
people through the provision and financing of decent, safe, sanitary and
affordable housing for elderly and disabled persons and persons of low and
moderate income, to enlarge existing employment and alleviate unemployment in
all phases of agriculture, shipping, tourism, fishing, maritime, economic
development and related businesses and industries, to develop reliable,
affordable, efficient and environmentally compatible sources of energy for
public and private consumption, to provide health care and other capital
facilities for the benefit of its people, to provide educational facilities for
the benefit of education within American Samoa, to provide facilities for
agencies of the government, and to assist private enterprise in financing
privatization of governmental operations.
(d) The Legislature finds that the public policies
and responsibilities of American Samoa as set forth in this section cannot be
fully achieved or attained without the use of public financing and that such
public financing can best be provided by establishing the American Samoa
Economic Development Authority, vesting it with comprehensive and extensive
powers herein described, and enabling said authority to issue revenue bonds and
enter into other obligations to provide financing for housing projects,
agricultural businesses, industrial enterprises, commercial enterprises,
utilities, health care facilities, educational facilities, governmental
facilities and other facilities, and to acquire real property wherever situated
to promote and develop the expansion of existing employment and the
establishment of new agricultural business, industrial enterprises, commercial
enterprises, residential housing, health care facilities, educational
facilities, facilities for agencies of the government, and any other
facilities, and that all of the foregoing are public purposes and uses for
which public moneys may be borrowed, expended, advanced, loaned and granted.
History: 1986, PL 19-69 § 1.
11.1902 Definitions.
As
used in this chapter, unless the context clearly indicates otherwise:
(1)
“Agricultural business” means farms, ranches and other
enterprises engaged in, or facilities directly or indirectly related to, the
production of agricultural commodities and forest products or businesses
related thereto, including, but not limited to, distribution, storage,
production, transportation, treatment, packaging, canning, or marketing
facilities.
(2) “Agricultural processing or storage facility”
means an enterprise engaged in, or a facility directly or indirectly related
to, the separation, cleaning, processing, converting, packaging, handling,
storing, or other activities necessary or appropriate for the preparation and
processing of crops, livestock, and other agricultural and forestry products.
(3) “Area of operations” means
(4)
“Authority” means the American Samoa Economic Development Authority.
(5)
“Blighted area” means an area which, by reason of the presence of a substantial
number of deteriorated or deteriorating structures, the predominance of
defective or inadequate street or lot layout, faulty lot layout in relation to
size, adequacy, accessibility or usefulness, unsanitary and unsafe conditions,
deterioration of site or other improvements, diversity of ownership, the
existence of conditions which endanger life or property by fire and other
causes or any combination of such factors, substantially impairs or arrests the
sound growth of a community, retards the provision of adequate housing
accommodations or constitutes an economic or social liability and is a threat
to the public health, safety, morals or welfare in its present condition and
use.
(6)
“Board of directors” means the Board of Directors of the Authority.
(7)
“Bonds” or “bond documents” means the bonds authorized to be issued and other
obligations to be entered into by the authority pursuant to this chapter. The
term “bonds” also includes a single bond, a promissory note or
notes and any other instrument evidencing an obligation to repay borrowed money
including, but not limited to security instruments, trust indentures, loan
agreements, collateral pledge agreements, guaranties, mortgages, deeds of
trust, debentures, interim certificates, tax anticipation notes, revenue
anticipation notes, grant anticipation notes, leases, lease-purchase
agreements, certificates of participation in a lease or lease-purchase agreement,
or other agreements setting forth the method or source of repayment of borrowed
money.
(8)
“Commercial enterprise” means an enterprise engaged in, or a facility directly
or indirectly related to, the production, distribution or marketing of goods
or services, including but not limited to, wholesale, retail and other
mercantile activities, office buildings, hotels, motels, shopping centers,
department stores, grocery stores, souvenir shops, book stores, stevedores,
export or import companies, marine railways, and any other commercial activity.
(9)
“Cost” means the amounts expended on or committed for or otherwise related to
acquisition, construction reconstruction, improvement, or expansion of a
project or facility, including the amounts expended to acquire land,
rights-of-way, property rights, easements and other interests in real, personal
or mixed property; the amounts expended for machinery and equipment, financing
charges, interest prior to and during construction and for one year after completion
of construction whether or not capitalized, necessary reserve funds,
engineering, architectural, accounting, and legal services, plans and
specifications, surveys, cost benefit analyses, feasibility studies, and other
expenses necessary, appropriate or incident to determining the feasibility of,
and acquiring, constructing, reconstructing, improving, and expanding any
project or facility; administrative or management expenses deemed by, the Board
of Directors to be necessary or appropriate; fees charged by the authority;
charges and expenses necessary or appropriate to the financing or refinancing
project, including the refunding of any outstanding obligations, mortgages, or
advances issued, made or given by any person for any of these expenditures, and
including, but not limited to underwriting fees, financial advisory fees,
credit enhancement costs, title insurance premiums, bond insurance premiums,
trustee’s fees, printing costs, rating agency fees, travel expenses and any
other cost deemed necessary or appropriate by the Board of Directors of the
authority to the discharge of the powers, rights, and privileges vested in it
by this chapter.
(10) “Education facilities” shall mean real,
personal or mixed property of any and every kind intended by an educational
institution to be utilized in furtherance of its educational program,
including, but not limited to, dormitories, classrooms, laboratories, athletic
fields, administrative buildings, recreational building equipment and other
property for use therein.
(11) “Facilities” means any interest in real,
personal or mixed property, whether tangible or intangible, including but not
limited to, land or rights in land, leases, air rights, subsurface rights,
water rights, geothermal rights, easements, rights-of-way, permits, licenses,
depreciable assets, contract rights, or immovable and any other property,
furnishing, machinery, vehicles, apparatus or equipment including, but not
limited to, any and all facilities for agencies of the government, courthouses
and other administrative, executive or other public offices; office buildings;
jails; fire fighting and fire prevention, law enforcement and crime prevention
facilities and apparatus; auditoriums, stadiums, convention centers and similar
public meeting or entertainment facilities; civil defense facilities; civil
defense facilities; hospitals; air and water pollution control facilities;
drainage and flood control facilities; storm sewers; arts and crafts centers; museums,
libraries, public parks, playgrounds or other public open space; marinas;
swimming pools, tennis courts, facilities for other racquet sports, bowling
greens, cricket fields, camping facilities, gymnasiums and other recreational
facilities; tourist information and assistance centers; historical, cultural,
natural, or folklore sites; fair and exhibition facilities; streets and street
lighting, alleys, sidewalks, roads, highways, bridges, and via ducts; airports,
passenger or freight terminals, ports, harbors, ferries, wharves, docks and
similar marine services, slack water harbors, water resource facilities,
waterfront development facilities, public water systems and related
transmission and distribution facilities, storage facilities, wells, impounding
reservoirs, treatment plants, lakes, dams, watercourses; sanitary sewage
collection systems and treatment plants; maintenance and storage buildings and
facilities; police and sheriff stations; apparatus and training facilities;
telecommunications systems; data gathering and transmission systems; computer
systems; incinerators; garbage and solid waste disposal, compacting and
recycling facilities of every kind; and social and rehabilitative facilities.
(12) “Federal government” means any agency, department,
or instrumentality of the Government of the
(13) “Fishing industry” means an enterprise
engaged in, or a facility directly or indirectly related to, any aspect of
harvesting any product of the sea whether plant, fish, mammal, amphibian or
some other classification, or an enterprise engaged in, or facilities directly
or indirectly used in connection with the separation, cleaning, processing,
converting, packaging, handling, storing or sale of such products of the sea.
(14) “Health care facilities” shall mean facilities
for furnishing physical or mental health care including, but not limited to,
hospitals and other facilities for the diagnosis and treatment of any physical
or mental illness or malady, offices and clinics and related facilities,
nursing homes and related facilities, long-term or lifecare facilities for the
elderly or disabled, and shall include facilities used to furnish emergency
medical health care and ambulances or vehicles specifically designed, equipped
and licensed for transporting the sick or injured, emergency medical equipment
and supplies; communications systems; computers and information processing
systems; and training and administrative facilities.
(15)
“Home buyer” means a person who has executed a contract with the authority to
acquire a home, and who has not yet become a homeowner.
(16)
“Housing project” means any facility, work, or undertaking to provide or assist
in providing decent, safe and sanitary dwellings, apartments, or other living
accommodations for persons of low and modest income by any suitable method,
including, but not limited to, rental, sale of individual units in single or
multi-family structures under conventional condominium, cooperative sales
contract or lease-purchase agreement, loans, or subsidizing of rentals or
charges. Each facility, work or undertaking may include buildings, leasehold
interests, equipment, facilities and other real, personal or mixed property
deemed by the Board of Directors of the authority to be necessary, convenient
or desirable, including, but not limited to, streets, sewers, water service,
utilities, parks, site preparation or landscaping, and any other facility or
appurtenances for administrative, community, health; recreational, welfare or
other purposes. The term “housing project” or “project” also may be applied to
the planning of the buildings and improvements thereto, the acquisition of the
property or any interest therein, the demolition of existing structures,
construction, reconstruction, rehabilitation, alteration or repair of the
improvements or other property and all other work resulting therefrom or
incidental thereto. The term shall also include all other real, personal or
mixed property and all tangible and intangible assets held or used in
connection with the housing projects.
(17)
“Industrial enterprise” means an enterprise engaged in, or a facility directly
or indirectly used to manufacture, produce, process, assemble, repair extract,
warehouse, distribute and transport any product, including but not limited to,
corporate and management offices and services provided in connection with any
of the foregoing and industrial parks.
(18)
“Loans” shall mean loans made for the purposes of financing any of the
activities authorized within this chapter, including loans made to financial
institutions for the purpose of funding loans to third parties or as security
for loans made to accomplish any of the purposes of this chapter.
(19)
“Members” means the members of the Board of Directors of the authority,
organized pursuant to the provisions of 11.1903.
(20)
“Mortgage” includes a mortgage, trust indenture, deed of trust, or other
similar instrument.
(21) “Mortgage holder” includes the United States
Department of Housing and Urban Development, Federal Housing Administration,
United States Department of Agriculture, Farmers Home Administration, any other
federal government or state agency engaged in housing activity, Administrator
of Veterans Affairs, Federal Home Loan Mortgage Corporation, private mortgage
lender, private mortgage insurer, and their successors, grantees and assigns.
(22) “Mortgage lender” means any bank or trust
company, savings bank, national banking association, or savings and loan
association maintaining an office in American Samoa, an insurance company
certified to transact business in American Samoa, or any mortgage approved by
the Federal Housing Administration and maintaining an office in American Samoa.
(23)
“Obligations” means any notes, bonds, interim certificates, contracts,
debentures, or other forms of obligation issued by the authority pursuant to
this chapter.
(24) “Person” shall mean any individual,
corporation, association, partnership, joint venture, joint stock company,
trust, unincorporated organization, and any other legally recognized entity or
government or any agency or political subdivision thereof.
(25)
“Persons of low income” means persons or families as determined by the board of
directors who cannot afford to pay enough to cause private enterprise in the islands
to build an adequate supply of decent, safe, and sanitary dwellings for their
use.
(26) “Persons of moderate income” means persons of
families as determined by the Board of Directors who cannot afford to pay
enough to secure the necessary mortgages to buy a decent, safe and sanitary
dwelling for their use.
(27)
“Project” means any facilities deemed by the Board of Directors to be necessary
or appropriate to a housing project, an agricultural business, an agricultural
processing or storage facility, a commercial enterprise, educational
facilities, the fishing industry, health care facilities, an industrial
enterprise, a tourism facility, a warehousing or distribution facility and
sports facilities, convention or trade show facilities; mass transit commuting
facilities; parking facilities; sewage or solid waste disposal facilities;
facilities for the furnishing of water for use by the general public, including
nonresidential users; local district heating and cooling facilities;
industrial parks; residential rental property; hydroelectric generating
facilities; airport, dock, or wharf or storage or training facilities directly
related thereto; facilities for the local furnishing of electric energy or gas;
petroleum products processing or storage facilities; air and water pollution
control devices or facilities; facilities of agencies of the government for
administration or any other governmental purpose: one or more buildings and
other structures, whether or not on the same site or sites; any rehabilitation,
improvement, renovation, enlargement of, or addition to, any buildings,
facilities, or structures for use in any project; sites and other rights in
land whether improved or unimproved, machinery, equipment, inventory, site preparation
and landscaping, and all appurtenances and facilities thereto, such as
warehouses, utilities, access roads, truck docking and similar facilities; as
well as any combination of the foregoing any other project which would qualify
for tax exempt financing under title 26 U.S.C. 103 and 103A.
(28) “Tourism facility” means a facility used for or
useful in connection with theme parks, zoological gardens, amusement parks,
major historical, educational or trade museums, cultural centers, or spectator
or participatory sports facilities, generally available to the public,
including but not limited to, marinas, arenas, beaches, bathing facilities,
golf courses, hotels, theaters, and auditoriums.
(29)
“Utilities” or “utility” means any enterprise engaged in, or facility directly
or indirectly used in the generation, cogeneration, conversion, production,
transmission, storage, or delivery of energy, communication, gas, water,
wastewater, drainage, electricity, power, solid waste disposal, telephone, data
transmission or telecommunication services.
(30) “Warehousing or distribution facility” means a
facility used or useful in the storage or centralized distribution of products
resulting from, or used in, manufacturing, agriculture, fishing, mining, or any
of the other activities specified as public purposes in this chapter, including
but not limited to, warehouse, distribution centers, freight terminals, and
elevators.
History: 1986, PL, 19-69 § 1.
11.1903 Establishment of
(a)
There is established the American Samoa Economic Development Authority to be an
agency of the government, and a body corporate and politic to implement the
public purposes of this chapter. The Authority may act on behalf of the
government for the specific purposes prescribed in this chapter. The Authority
shall constitute a public housing agency within the meaning of the United
States Housing Act of 1937, as amended and a “local public agency” within the
meaning of Title I of the Housing Act of 1949, as amended. The Authority shall
have all the powers, rights, duties, privileges, functions and obligations
prescribed and provided in this chapter. On the effective date of this
legislation, the Authority shall succeed to, and assume all of the rights,
property, powers, privileges, duties, contracts, actions, responsibilities and
obligations of the American Samoa industrial development commission, which
shall simultaneously cease to exist.
(b) The governing body of the Authority is a Board
of Director. The first Board of Directors is comprised of 7 members of the
Board of Directors of the American Samoa Industrial Development Commission
heretofore appointed by the Governor with the advice and consent of the
Legislature and 2 members of the Legislature, one from the Senate appointed by
the President of the Senate and one from the House of Representatives appointed
by the Speaker of the House. The first member has been duly appointed to a term
of office expiring on
Except
for Legislative appointees, recess appointments may be made to fill vacancies
caused by death, resignation, or removal for cause if the vacancy occurs while
the Legislature is not in session. Except for Legislative appointees, recess
appointments expire at the conclusion of the next following regular or special
session of the Legislature if they are not confirmed during that session. The
members shall elect from among themselves a chairman, for a term not exceeding
2 years, and such other officers as may be prescribed by duly adopted by-laws.
(c) The Authority shall continue to have the
powers and rights of a corporation within the meaning of title 30, chapter 01 of
the American Samoa Code Annotated, and has all of the powers provided by, and
is subject to the limitations of, title 30 not inconsistent with the provisions
of this chapter related to the creation, organization, administration,
operation and affairs of the Authority.
(d)
The chairman shall be the agent of the authority upon whom any process, notice,
or demand required or permitted by law to be served upon the authority may be
served. In the chairman’s absence, any other member of the board of directors shall
be the agent for receiving service of process, notice or demand.
(e)
The Authority shall have perpetual existence.
(f)
The Authority shall have the right to acquire facilities or projects by
exercising the power of eminent domain in accordance with the provisions of
general law. The power of eminent domain shall be exercised only when the Board
of Directors deems that no other reasonable alternative is available, and compensation
shall be made in accordance with law for the property rights acquired in this
manner.
History: 1986, PL, 19-69 § 1.
11.1904 Authorization to issue bonds.
(a) The Authority may issue bonds or enter into
other obligations to finance all or any portion of the cost of a project or facility
or otherwise implement any project set forth and defined by this chapter.
(b) Bonds issued for each project under the
provisions of this chapter do not constitute a debt of the Territory or the
Government, or its political subdivisions or agencies, or a pledge of the faith
and credit of any of them, but are payable solely from the revenue of such
project and from any other source of funds lawfully available to the Authority,
including funds received from the Federal Government to acquire, construct,
finance, own, operate or lease the project. The bonds must contain a statement
to the effect that neither the Territory or the Government nor any political
corporate or subdivision of the Territory or the Government is obligated to pay
the same or the bond interest from sources other than those specified in the
bonds, and that the faith and credit and the taxing power of the Territory or
the Government, or its political subdivisions, is not pledged to the payment of
the principal of or the interest on these bonds. The Authority may not incur
financial obligations which cannot be paid from proceeds of the bonds or from
the security given for the bonds or from revenues realized from the project or
realized from repayment of a loan made by the Authority to finance or
refinance a project, in whole or in part, or from any other source of funds
lawfully available to the Authority, including funds received from the Federal
Government.
(c) The exercise of the powers granted by this
chapter will be in all respects for the benefit of the people of
(d)
The Authority may enter into contracts, agreements and other obligations with any
agency or department of the United States of America, the Government or any
other person on terms and conditions deemed appropriate by the Board of
Directors of the Authority and for a term which may extend to 55 years from the
effective date of the agreement or contract.
The Government, through its duly constituted officials, may enter into
contracts, agreements and other obligations with the Authority to implement any
of the provisions of this chapter upon terms and conditions deemed appropriate
by the Government.
History: 1986, PL, 19-69 § 1.
11.1905 Powers of the
Authority
(a)
The Authority has the following specific powers with respect to any project
together with all other powers incidental, necessary or appropriate for the
implementation of these projects not in conflict with the provisions of this
chapter:
(1) to acquire, whether by construction, devise,
purchase, gift, lease, condemnation or otherwise or any one or more of such
methods, and to construct, improve, maintain, equip., and furnish one or more
projects other than a project involving governmental facilities, located within
the Territory or within the coastal waters of the Territory;
(2) to
lease or lease-purchase to a lessee or from a lessor all or any part of a
project for rentals upon terms and conditions which its members consider
advisable;
(3) to
sell or acquire by installment payments or otherwise and convey or receive
conveyance of all or any part of a project other than a project involving
government facilities, for a purchase price upon the terms and conditions
which its members consider advisable;
(4) to
lease for a term coterminous with the term of any bonds issued by the
Authority, from the government all or any part of a project for governmental
facilities provided that any lease of ten years or more submitted to the
Legislature as may be required by section 37.2030 A.S.C.A.;
(5) to
make secured or unsecured loans for the purposes of providing temporary or
permanent financing or refinancing of all or part of the cost of a project,
including the refunding of any outstanding obligations, mortgages, or advances
issued, made, or given by any person for the cost of a project; and to charge
and collect interest on these loans for the loan payments upon the terms and
conditions which its members consider advisable;
(6) to
issue bonds for the purpose of financing any project as provided in this
chapter and to sell bonds at a price determined by the members or to exchange
bonds for property, labor, services, material or equipment, comprising a
project or incidental to the acquisition of a project, and those bonds may bear
interest at any rate or rates, including variable rates, and contain other
terms, provisions or conditions determined by the members to be necessary or
appropriate;
(7) as
security for the payment of the principal of and interest on any bonds issued
and any agreements made in connection with that issuance, to mortgage and
pledge all or part of these projects, whether then owned or later acquired, and
to assign, mortgage, and repledge security available to the authority to secure
a loan made by or to the Authority and to pledge the revenues, rentals,
receipts and other payments therefrom;
(8) to
enter into any contracts or agreements, in addition to the bond documents,
which it deems necessary or appropriate on terms and conditions the members
deem appropriate;
(9) to charge to applicants for bond financing and
other services reasonable application, administration and other fees:
(10) to
agree, notwithstanding anything to the contrary contained in this chapter or in
any other provision of law, to any conditions attached to federal government
financial assistance in the development or operation of projects; and the
authority may include in any contract, made in connection with a project,
stipulations requiring that the contractor and any subcontractors comply with
requirements as to maximum hours of labor, and comply with any conditions which
the Federal Government may have attached to its financial aid to the project:
(11)
to obligate itself, as required by the Federal Government or as necessary to
acquire mortgage insurance, in any contract with the Federal Government for
contributions to the Authority, to transfer or convey to the federal government
possession of or title to the project to which such contract relates, to the
extent that the Authority has obtained possession or title to a project, upon
the occurrence of a substantial default (as defined in such contract) with
respect to the covenants or conditions to which the authority is subject: and
such contract may further provide that in case of such transfer or conveyance,
the Federal Government may complete, operate, manage, lease, convey or
otherwise deal with the project and funds in accordance with the terms of such
contract, provided that the contract requires that, as soon as practicable
after the Federal Government is satisfied that all defaults with respect to the
project have been or will be cured and that the project will thereafter be
operated in accordance with the terms of the contract, the Federal Government
shall transfer back, or reconvey to the Authority the project as then
constituted;
(12)
to lease real property to or from private entities or the government, for such
periods as are authorized by law, and to hold and manage or to sublease said
property;
(13)
to borrow or lend money, to issue temporary or long term evidence of
indebtedness, and to repay the same;
(14)
to pledge the assets and receipts of the authority as security for debts, and
to acquire, sell, lease, exchange, transfer or assign, real, personal or mixed
property, or any interest therein;
(15)
the Authority shall have no authority to purchase or otherwise acquire communal
or native land;
(16)
to undertake and carry out studies and analyses of housing needs, to prepare
plans to remedy housing needs, to execute the same, to operate projects and to
provide for the construction, reconstruction, improvement, extension,
alteration or repair of any housing project or any part thereof;
(17)
with respect to any dwellings, accommodations, lands, buildings or facilities
embraced within any housing project (including individual cooperative or
condominium units), to lease or rent, sell, enter into lease-purchase agreements
or lease with option to purchase; to establish and revise rents or required
monthly payments; to make rules concerning the selection of tenants or
homebuyers, including the establishment of priorities, and concerning the
occupancy, rental, care and management of housing units; and to promulgate
further rules as the Board of Directors may deem necessary and desirable to
effectuate the powers granted by this chapter;
(18) to finance the purchase of a home by an
eligible homebuyer in accordance with regulations and requirements of the
Federal Government;
(19) to terminate any lease or rental agreement
or lease-purchase agreement when the tenant or homebuyer has violated the terms
of such agreement, or failed to meet any of its obligations thereunder, or when
such termination is otherwise authorized under the provisions of such
agreement; and to bring action for eviction against such tenant or homebuyer;
(20) to establish income limits for admission that
insure that dwelling accommodations in a housing project shall be made
available only to persons of low income or moderate income;
(21) to purchase insurance from any stock or
mutual company for any property or against any risk or hazards;
(22) to invest such funds as are not required for
immediate disbursement;
(23) to establish and maintain such batik accounts
and other banking relationships as may be necessary or convenient;
(24)
to employ an executive director, technical and maintenance personnel and such
other officers and employees, permanent or temporary, as the Authority may
require and to delegate to such officers and employees such powers or duties as
the Board of Directors shall deem proper;
(25) to join or cooperate with any other public
housing agency or agencies operating under the laws or ordinances of a state,
territory or Indian tribe in the exercise, either .jointly or otherwise, of
any or all of the powers of the Authority and such other public housing agency
or agencies for the purposes of financing, (including but not limited to the
issuance of notes or other obligations and giving security therefor), planning,
undertaking, owning, constructing, operating or contracting with respect to a
housing project or projects of the Authority or such other public housing
agency or agencies, so joining or cooperating with the Authority, in the name
of the Authority or in the name of such agency or agencies;
(26) to take such further actions as the Board of
Directors may deem necessary and desirable to effectuate the purposes of the
Authority.
(b) The Authority may not own or operate any industrial enterprise, commercial enterprise, or utility, other than as lessor, seller, or lender or pursuant to the requirements of any bond documents or other contract or agreement deemed appropriate by the Board of Directors of the Authority. Accordingly, the lessee, purchaser, or borrower pursuant to any lease, sale or loan agreement related to an industrial enterprise, a commercial enterprise, or utility is considered the owner of the project for the purposes of the application of any- property, sales, or use taxes or any other taxes levied or imposed by the Territory and its political subdivision. The purchase and holding by the authority of mortgages, deeds of trust, or other