6 Nov 2003

US to ease American Samoan bond taxation

4:37 pm on 6 November 2003

The United States House of Representatives has unanimously passed legislation that would provide the American Samoa government with the authority to issue bonds exempt from state and federal taxation.

The measure would amend the federal tax code to allow interest earned from American Samoa bonds to be exempt from both state and local taxation.

Current federal tax codes bonds issued by Guam, the Virgin Islands, Puerto Rico and the Northern Mariana islands are exempted from state and local taxes.

While American Samoa can issue bonds similar to other territories, the interest earned from American Samoa bonds is subject to taxation by several states, Washington DC and other territories.

American Samoa's delegate in the US Congress, Faleomavaega Eni Hunkin, said the current bill that he sponsored would provide parity to American Samoa and also make local bonds more attractive to investors.