Senator James C. Moylan introduced Bill 46-35 this afternoon which is designed to aid in the enforcement efforts of short-term Vacation Rentals and Bed & Breakfasts, which, while is a growing industry on Guam, has been facing problems with compliance.
The legislation aims to accomplish three objectives:
- It increases the penalties for those operators who are conducting business without a license.
- It creates a reward program for island residents who confidentially provide information to the Department of Revenue & Taxation that leads to illegally operated vacation rentals and bed & breakfasts.
- It allows the Department of Revenue and Taxation to retain a portion of the excise taxes collected from these units for enforcement purposes.
“The Short-term Vacation Rentals and Bed & Breakfast industry has the potential to generate millions of dollars in new revenue for our island, but it needs to be done right,” stated Senator Moylan.
Recent reports have indicated that the Short-term Vacation Rental and Bed & Breakfast industries have the potential of providing millions of dollars in new revenue for Guam, but unless we are able to provide the department the resources, we may never see these dollars.
“This legislation provides the department the resources it needs to effectively enforce the law, including providing them the greatest set of eyes and ears of who can monitor illegal rentals in the neighborhoods – the residents of Guam.”