Governor signs legislation that will boost funding for DBAS

Governor Togiola Tulafono has signed into law legislation that allocates money for the Development Bank of American Samoa (DBAS).

The Governor signed the bill on October 24 and it went into effect that same day.

The legislation is the Economic Development Fund, for $10 million, which will help DBAS in achieving its purpose of promoting private enterprise and developing the local economy.

The bill originated from the Administration and was fully supported by the Senate.

DBAS administers federally funded loan programs, and the new law is the first major financial contribution from the local government.

Currently, 25% of all corporate income taxes are deposited into the Income Reserve Account until the account has a net balance of $1 million, which is then used to pay local tax refunds. The bill names the Income Reserve Account as the funding source and requires 25% of income taxes from corporate businesses to be deposited into the reserve account. The 25% is accumulated after the tax refund earmark reaches $1 million.

Under the new bill, the proceeds from the 25% will be deposited into the Economic Development Fund until it is fully funded. These funds will then be remitted to DBAS at the end of each calendar year.

The bill states that “all income from investments from the Fund shall be credited to the account, and shall be available for reinvestment.”