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Back Local News QC revenues down in FY2012

QC revenues down in FY2012

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THE Guam Economic Development Authority has seen a decrease in the Qualifying Certificate program, one of its three revenue-generating programs.

According to an audit report released yesterday by the Office of Public Accountability, revenues from the QC program decreased by 14 percent in fiscal year 2012, going from $499,181 in 2011 to $428,673 last fiscal year.

The QC program is an economic incentive tool to entice investors into Guam. The program was created in early 1965 to foster the growth of the then-fledgling tourism industry. It offers corporate income tax and dividends tax rebates, and real property tax abatements.

According to the report, the decrease was a result of the expiration of hotels’ Qualifying Certificates. Annual surveillance and application fees were not collected from this business.

Qualifying Certificates account for 8 percent of revenues generated for GEDA, with income from industrial park fees at 24 percent and lease properties from the Guam Ancestral Land Commission at 2 percent.

Despite the loss in QC revenue, GEDA ended FY2012 with an increase in net assets of $56,000 due to increases in bond fees and grants, such as the Business Privilege Tax Bond Series 2011 A and 2012 B of $344 million; the State Small Business Credit Initiative funds; and the State Trade and Export Promotions grant of $183,000.

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