Chapter 06 - Miscellaneous Taxes

Chapter 06 - Miscellaneous Taxes

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.

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);

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.

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.

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.

11.0607 Wage tax.

(a) All wages earned in the Territory shall be taxed at the rate of two percent (2%). This tax is in addition to American Samoa’s income tax as set forth in Chapters 4 and 5 of this Title.
(b) This tax shall be paid by the wage earner and reported on the wage earner’s tax return.
(c) Employers shall immediately increase the minimum withholding for all employees from 4% to 6%.
(d) This wage tax shall take effect and commence in tax year 2012. Revenue generated from this wage tax shall be deposited in the Treasury.
(e) The Treasurer shall transfer accumulated proceeds from this account in the following manner and for the following purposes:
(1) first, proceeds shall be transferred on a monthly basis to the Workmen’s Compensation Account until the sum of such transfers totals $3,000,000, which shall be considered as repayment of the loan to the American Samoa Medical Center from the Workmen’s Compensation Account; and, thereafter,
(2) fifty percent (50%) of accumulated proceeds shall be transferred to the LBJ operation; and
(3) fifty percent (50%) of accumulated proceeds shall be transferred to a separate special account of the American Samoa Medical Center no later than the 5th day of each month and used to support the Off-Island Medical Referral Program.
(f) This earmark is separate and apart from the earmark established pursuant to section 11.0605.