TRomen rE he Congress as ate, but he also ecretary of the lations he does Authority con- inancial opera- as funded by ' Secretary of y Committee ust Territory eau of the eld and the ry Operations t projects is ent’s Budget ‘ongress each nd expend. ree :levels of ete muct, and "lor ( perations "a chy Pter action. Upon approval, the appropriations acts become law, and expenditures are made in accord ance with their provisions. The district treasurer is responsi ble for receiving, maintaining, and disbursing district government fund s as distinguished from Trust the district legislature and serves und er the direction and supervision of the istrict administrator. The “7 4nnual report of all funds he ‘Teceives and disburses duri ng each fiscal year. Control of fiscal operat ions at the municipal level rests with the municiPal administration, the district administrat supervision and budget | aparare€rae it Powers of approval. Local tothe to ishec| council for approval bef the munici ore it is trans. mitted to the district administrator for ratification. Officials of the district admini stration assist and advise in the original Preparation of the budget Where such assistance is required or fa b customs TAXATION collect taxes and lic ense fees and expend them accord ing to approved schedules and budget s. mppendix IV. A comp arative statent of revenues and €xpend itures also is given in Appe ndix IV, Part VI--Economic Advancement Taxation authority vested in the territorial, district, and local govern- ments is delineated in Chapter 3, Sections 46 to 48 of the Trust Terri- tory Code. Chapter 18 of the Code deals with taxation laws. The taxing authority is vested in and may be exercised by the three levels of government as follows: Territorial. . The imposition and collection of sales taxes, and the authorizing of municipalities to impose and collect excise taxes on any item other than foodstuffs. Municipal and Local. Licensing and collecting license fees of retail businesses within the municipality, subject, however, to all applicable territorial or district laws. Exclusive control of import, export, and income taxes including any so-called excise taxes which are actually collected on the basis of imports. Present taxes are (a) an excise tax on the use, distribution, Re As Tabi. aR Provide tax income for the municiP ity are similarly prepared and ws. After 5OFfaa. Revenues and ex penditures of seislatn municipal ities and district governein the feats wh ich prepared budg ets for ptiations Cat ye ar 1967 appear in tables in su aot han or district ‘¥€asurer is required by law to submit or having certain fiscal Chapter 2 Territory wuired by ‘pProv ed. The treasurer , or in some ne distri. ances the Magistrat e, is authorized based © result op administrative unions. Government funds. Heis appointe d by ontrol and ested. The app roved budget ons at aie vheeui nes the extent of exp enditures ncome and ich may be made locally during the Iscal year from mun icipal revenues. waley os Ba During the year under review the Territory did not enter into any or sale of motor vehicle fuel, (b) an export tax on copra, trochussheil, and scrap metal, and (c) general import taxes. For rates of these taxes, see Part VI, Section 4, Chapter 2. District. Liquor control, including the right to collect wholesale liquor license fees and to impose taxes on alcoholic beverages, provided that neither of these shall be based on imports or volume or value of imports. The imposition and collection of head taxes, property taxes on any items other than foodstuffs, and such excise taxes as the district legislature may authorize; provided, however, that none of these shall be based on imports, or the value or volume of imports. For purposes of taxation, no distinction is made between domestic companies and foreign companies or organizations doing business in the Territory; all are equally subject to applicable taxing statutes and ordinances imposed by and in effect within éach level of government. The Territory does not now have income taxes, dividend taxes, corporation profit taxes, or hut taxes, nor is there any Territory-wide capitation or poll tax. The head tax is the most nearly universal tax in Micronesia varying in amount from $I to $10, averaging $2 to $3, and generally levied on males 18 years of age or older. In two districts, Exclusive issuance of licenses for some municipal governments levy real property taxes. One other district levies cattle taxes. credit union and cooperatives, insurance, sale of securities and public utilities, including the exclusive right to collect fees for such licenses, provided these are not based on imports or the volume or value of imports. Except for taxes the Territorial Government imposes, district and municipal taxes are imposed by district laws and municipal ordinances passed by the respective legislative bodies. wholesale businesses other than banks, Fiscal Year 1968 SE a 39 ee ee ee ee Rat ee ee ee ¥ . ~~ ae eae * oN lited States. The adopts such ReIRE Pe sok Ae,