or
—_—
eeee eet ang tis issue to the Department
of Treasury, which will presenta detailed repoTt a these sections
for the Administration.
We stress, however, that the issues raised by these sections are complex.
Customs laws, which may be Federal or local, may be applicable in one territory but not arcther. Also, the application of United States income tax _
laws differs from territory to territory. For exanple, the mirror
believe that the Federal administration of taxes would intrude into
territorial prerogatives and therefore oppose mardatcry Federal
collection of territorial taxes. x=Sié agree that the proposal new contained
in H.R. 3756 raises a significant question as to whether it reverses
the long-standing United States Goverrment policy of fostering greater
local self-govermment for the territories.
.
The Interagency Task Force reviewing territorial policy is addressing
various issues, including tax administration, considered in these
sections. Presidential decisions will be forthcoming later this year.
Among the options to be considered by the Administration wilt be
Federal training and technical assistance for territorial tax collection
Section
204
+o
™
Section 204 would,extend the date of initial applicability of the
Federa) income tax.to. tha.Northarn Mariana Islands from Jaruary 1, 1979,
to Jarmary 1, 1982. Federal income tax laws became applicable to the
Northern Mariana Islands beginning Jamary 1, 1979. TheAdministration
has no objection to section 204.
mae
The Governar.cf theNorthern Mariane Islands statesthat pection 204
revere to
would result in the loss of approximtely $300,000
anas'. treasury. and he. prefers the ‘provisions of section 3(d)
Northern.
of P.L. 9 348 to section 204.
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