48 U.S.C. § 1421h — Duties, taxes, and fees; proceeds col-

Page 102 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1421h health services in Guam, including hospitals, dispensaries, and quarantine stations, at such places in Guam as may be necessary, and he shall promulgate quarantine and sanitary regu- lations for the protection of Guam against the importation and spread of disease. (b) Public educational system The Government of Guam shall provide an adequate public educational system of Guam, and to that end shall establish, maintain, and operate public schools according to the laws of Guam. (c) Office of Public Prosecutor; Office of Public Auditor The Government of Guam may by law estab- lish an Office of Public Prosecutor and an Office of Public Auditor. The Public Prosecutor and Public Auditor may be removed as provided by the laws of Guam. (d) Attorney General (1) The Attorney General of Guam shall be the Chief Legal Officer of the Government of Guam. At such time as the Office of the Attorney Gen- eral of Guam shall next become vacant, the At- torney General of Guam shall be appointed by the Governor of Guam with the advice and con- sent of the legislature, and shall serve at the pleasure of the Governor of Guam. (2) Instead of an appointed Attorney General, the legislature may, by law, provide for the elec- tion of the Attorney General of Guam by the qualified voters of Guam in general elections after 1998 in which the Governor of Guam is elected. The term of an elected Attorney Gen- eral shall be 4 years. The Attorney General may be removed by the people of Guam according to the procedures specified in section 1422d of this title or may be removed for cause in accordance with procedures established by the legislature in law. A vacancy in the office of an elected Attor- ney General shall be filled— (A) by appointment by the Governor of Guam if such vacancy occurs less than 6 months before a general election for the Office of Attorney General of Guam; or (B) by a special election held no sooner than 3 months after such vacancy occurs and no later than 6 months before a general election for Attorney General of Guam, and by appoint- ment by the Governor of Guam pending a spe- cial election under this subparagraph. (Aug. 1, 1950, ch. 512, § 29, 64 Stat. 392; Pub. L. 99–396, §§ 5, 13, Aug. 27, 1986, 100 Stat. 839, 842; Pub. L. 105–291, § 2, Oct. 27, 1998, 112 Stat. 2785.) Editorial Notes AMENDMENTS 1998—Subsec. (d). Pub. L. 105–291 added subsec. (d). 1986—Subsec. (b). Pub. L. 99–396, § 13(a)(1), substituted ‘‘according to the laws of Guam’’ for ‘‘at such places in Guam as may be necessary’’. Pub. L. 99–396, § 5, substituted ‘‘Government of Guam’’ for ‘‘Governor’’. Subsec. (c). Pub. L. 99–396, § 13(a)(2), added subsec. (c). § 1421h. Duties, taxes, and fees; proceeds col- lected to constitute fund for benefit of Guam; prerequisites, amount, etc., remitted prior to commencement of next fiscal year All customs duties and Federal income taxes derived from Guam, the proceeds of all taxes collected under the internal-revenue laws of the United States on articles produced in Guam and transported to the United States, its Territories, or possessions, or consumed in Guam, and the proceeds of any other taxes which may be levied by the Congress on the inhabitants of Guam (in- cluding, but not limited to, compensation paid to members of the Armed Forces and pensions paid to retired civilians and military employees of the United States, or their survivors, who are residents of, or who are domiciled in, Guam), and all quarantine, passport, immigration, and naturalization fees collected in Guam shall be covered into the treasury of Guam and held in account for the government of Guam, and shall be expended for the benefit and government of Guam in accordance with the annual budgets; except that nothing in this chapter shall be con- strued to apply to any tax imposed by chapter 2 or 21 of the Internal Revenue Code of 1986 [26 U.S.C. 1401 et seq., 3101 et seq.]. Beginning as soon as the government of Guam enacts legisla- tion establishing a fiscal year commencing on October 1 and ending on September 30, the Sec- retary of the Treasury, prior to the commence- ment of any fiscal year, shall remit to the gov- ernment of Guam the amount of duties, taxes, and fees which the governor of Guam, with the concurrence of the government comptroller of Guam, has estimated will be collected in or de- rived from Guam under this section during the next fiscal year, except for those sums covered directly upon collection into the treasury of Guam. The Secretary of the Treasury shall de- duct from or add to the amounts so remitted the difference between the amount of duties, taxes, and fees actually collected during the prior fis- cal year and the amount of such duties, taxes, and fees as estimated and remitted at the begin- ning of that prior fiscal year, including any de- ductions which may be required as a result of the operation of Public Law 94–395 (90 Stat. 1199) or Public Law 88–170, as amended (82 Stat. 863). (Aug. 1, 1950, ch. 512, § 30, 64 Stat. 392; Pub. L. 86–778, title I, § 103(u), Sept. 13, 1960, 74 Stat. 941; Pub. L. 95–348, § 1(c), Aug. 18, 1978, 92 Stat. 488; Pub. L. 98–454, title VI, § 601(h), Oct. 5, 1984, 98 Stat. 1736; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.) Editorial Notes REFERENCES IN TEXT The internal-revenue laws of the United States, re- ferred to in text, are classified generally to Title 26, In- ternal Revenue Code. Public Law 94–395 (90 Stat. 1199), referred to in text, was enacted Sept. 3, 1976, and amended section 1423a of this title. Public Law 88–170, as amended (82 Stat. 863), referred to in text, is Pub. L. 88–170, Nov. 4, 1963, 77 Stat. 302, as amended by Pub. L. 90–511, Sept. 24, 1968, 82 Stat. 863, which is not classified to the Code. AMENDMENTS 1986—Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’. Page 103 TITLE 48—TERRITORIES AND INSULAR POSSESSIONS § 1421i 1984—Pub. L. 98–454 inserted ‘‘(including, but not lim- ited to, compensation paid to members of the Armed Forces and pensions paid to retired civilians and mili- tary employees of the United States, or their survivors, who are residents of, or who are domiciled in, Guam)’’ after ‘‘inhabitants of Guam’’ in first sentence. 1978—Pub. L. 95–348 inserted provisions relating to au- thorization, amount, computation, etc., of remittance, prior to commencement of any fiscal year, of duties, taxes, and fees to be collected in or derived from Guam under this section during that next fiscal year. 1960—Pub. L. 86–778 inserted clause providing that nothing in this chapter shall be construed to apply to any tax imposed by chapter 2 or 21 of title 26. § 1421i. Income tax (a) Applicability of Federal laws; separate tax The income-tax laws in force in the United States of America and those which may here- after be enacted shall be held to be likewise in force in Guam: Provided, That notwithstanding any other provision of law, the Legislature of Guam may levy a separate tax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the Gov- ernment of Guam. (b) Guam Territorial income tax The income-tax laws in force in Guam pursu- ant to subsection (a) of this section shall be deemed to impose a separate Territorial income tax, payable to the government of Guam, which tax is designated the ‘‘Guam Territorial income tax’’. (c) Enforcement of tax The administration and enforcement of the Guam Territorial income tax shall be performed by or under the supervision of the Governor. Any function needful to the administration and enforcement of the income-tax laws in force in Guam pursuant to subsection (a) of this section shall be performed by any officer or employee of the government of Guam duly authorized by the Governor (either directly, or indirectly by one or more redelegations of authority) to perform such function. (d) ‘‘Income-tax laws’’ defined; administration and enforcement; rules and regulations (1) The income-tax laws in force in Guam pur- suant to subsection (a) of this section include but are not limited to the following provisions of the Internal Revenue Code of 1986, where not manifestly inapplicable or incompatible with the intent of this section: Subtitle A [26 U.S.C. 1 et seq.] (not including chapter 2 [26 U.S.C. 1401 et seq.] and section 931 [26 U.S.C. 931]); chapters 24 and 25 of subtitle C [26 U.S.C. 3401 et seq. and 3501 et seq.], with reference to the collection of income tax at source on wages; and all provi- sions of subtitle F [26 U.S.C. 6001 et seq.] which apply to the income tax, including provisions as to crimes, other offenses, and forfeitures con- tained in chapter 75 [26 U.S.C. 7201 et seq.]. For the period after 1950 and prior to the effective date of the repeal of any provision of the Inter- nal Revenue Code of 1939 which corresponds to one or more of those provisions of the Internal Revenue Code of 1986 which are included in the income-tax laws in force in Guam pursuant to subsection (a) of this section, such income-tax laws include but are not limited to such provi- sions of the Internal Revenue Code of 1939. (2) The Governor or his delegate shall have the same administrative and enforcement powers and remedies with regard to the Guam Terri- torial income tax as the Secretary of the Treas- ury, and other United States officials of the ex- ecutive branch, have with respect to the United States income tax. Needful rules and regulations not inconsistent with the regulations prescribed under section 7654(e) of the Internal Revenue Code of 1986 [26 U.S.C. 7654(e)] for enforcement of the Guam Territorial income tax shall be pre- scribed by the Governor. The Governor or his delegate shall have authority to issue, from time to time, in whole or in part, the text of the income-tax laws in force in Guam pursuant to subsection (a) of this section. (3) In applying as the Guam Territorial income tax the income-tax laws in force in Guam pursu- ant to subsection (a) of this section, the rate of tax under sections 871, 881, 884, 1441, 1442, 1443, 1445, and 1446 of the Internal Revenue Code of 1986 [26 U.S.C. 871, 881, 884, 1441, 1442, 1443, 1445, and 1446] on any item of income from sources within Guam shall be the same as the rate which would apply with respect to such item were Guam treated as part of the United States for purposes of the treaty obligations of the United States. The preceding sentence shall not apply to determine the rate of tax on any item of in- come received from a Guam payor if, for any taxable year, the taxes of the Guam payor were rebated under Guam law. For purposes of this subsection, the term ‘‘Guam payor’’ means the person from whom the item of income would be deemed to be received for purposes of claiming treaty benefits were Guam treated as part of the United States. (e) Substitution of terms In applying as the Guam Territorial income tax the income-tax laws in force in Guam pursu- ant to subsection (a) of this section, except where it is manifestly otherwise required, the applicable provisions of the Internal Revenue Codes of 1986 and 1939, shall be read so as to sub- stitute ‘‘Guam’’ for ‘‘United States’’, ‘‘Governor or his delegate’’ for ‘‘Secretary or his delegate’’, ‘‘Governor or his delegate’’ for ‘‘Commissioner of Internal Revenue’’ and ‘‘Collector of Internal Revenue’’, ‘‘District Court of Guam’’ for ‘‘dis- trict court’’ and with other changes in nomen- clature and other language, including the omis- sion of inapplicable language, where necessary to effect the intent of this section. (f) Criminal offenses; prosecution Any act or failure to act with respect to the Guam Territorial income tax which constitutes a criminal offense under chapter 75 of subtitle F of the Internal Revenue Code of 1986 [26 U.S.C. 7201 et seq.], or the corresponding provisions of the Internal Revenue Code of 1939, as included in the income-tax laws in force in Guam pursuant to subsection (a) of this section, shall be an of- fense against the government of Guam and may be prosecuted in the name of the government of Guam by the appropriate officers thereof. (g) Liens The government of Guam shall have a lien with respect to the Guam Territorial income tax in the same manner and with the same effect,