10 Apr 2015

American Samoa moves closer to occupancy tax

7:04 pm on 10 April 2015

The Legislature of American Samoa has approved an occupancy tax for all paid accommodations.

The final vote was made by the Senate after it was endorsed last week by the House of Representatives.

The government says 75 percent of the room tax will go to the Department of Port Administration for the Airport Division, whose budget comes up $1.5 million US dollars in the red each year.

Pago Pago, American Samoa.

Pago Pago, American Samoa. Photo: AFP

The other 25 percent will go into the government's general fund account to cover other expenditures.

The bill now goes to the governor for his signature and will take effect in two months time.

The hotel industry opposes the bill, saying its an unfair tax targeting only one segment of the private sector.