1 Apr 2015

American Samoa opts for hotel tax

4:34 pm on 1 April 2015

American Samoa's House of Representatives has approved in final reading the administration's move to establish a hotel occupancy tax of five percent.

American Samoa

American Samoa Photo: RNZI

On Friday, all 14 representatives present approved the hotel tax bill by unanimous vote.

Treasurer Ueligitone Tonumaipe'a says the government would raise about 200,000 US dollars from the two major hotels in the territory Tradewinds and Sadies.

If other accommodations charging a daily rate are factored in, the collections will be bigger.

Hotel and motel owners, who testified on the bill last week, said it was unfair to target just a single industry and suggested that a sales tax was a fairer tax which would have everyone contributing.

The Senate version of the bill is still with the Budget and Appropriations Committee.