25 Sep 2003

American Samoa bond issues win tax-exempt status

10:21 am on 25 September 2003

The United States House Resources Committee has passed a Congessional measure which will allow interest earned from American Samoa bonds to be exempt from both state and local taxation.

Congressman Faleomavaega Eni, who sponsored the measure, said that while American Samoa can issue bonds similar to the other territories, the interest earned from American Samoa bonds is subject to taxation by several states, Washington DC and the other territories.

He said the measure would provide parity to American Samoa, making American Samoa bonds more attractive to investors and could save the American Samoa government tens of thousands of dollars a year in interest costs on municipal bonds it may issue.