By Shawn Gumataotao for Kandit News & Views
Since taking office on January 6, 2025, I have made Bill 11-38, the rollback of Guam’s Business Privilege Tax (BPT) from 5 percent to 4 percent, one of my top legislative priorities. In the months since, I’ve spoken to countless people across our island, taxpayers from Yigo to Malesso, and their message has been clear: the BPT rollback is needed now.
Why? Every day, residents are exposed to news about record revenues, budget surpluses, and public sector pay raises. The headlines in this and other publications, hourly talk radio updates, and evening news segments have fueled growing calls for relief from the BPT, not just from business owners, but from the working families they employ and serve.
For Guam’s 52,240 private sector workers and business owners, many of whom continue to face rising costs, the BPT remains a real burden. And let’s be clear: they are no different from the 11,980 employees across the executive, judicial, and legislative branches. Me included.
We are all taxpaying citizens of Guam.
A public hearing on the rollback of the BPT from 5 percent to 4 percent is set for Monday, June 9, 2025. I hope that, before the hearing and in the few days after the legislative Committee on Finance and Government Operations meets, the whole of the 38th Guam Legislature can get your collective input on this important policy proposal. I am asking that you attend the hearing at the Guam Congress Building, if you are able. I hope you will watch the live deliberations on the Guam Legislature You Tube Channel. Please review it upon its completion when you can.
I join so many Guam residents in the belief that Bill 11-38 will go a long way to help our whole island community. I believe this legislation can create real, tangible benefits. The 1 [percentage point] reduction in BPT will allow local businesses to reinvest, creating jobs, training workers, upgrading equipment and facilities, and improving goods and services for customers. This isn’t theoretical. These are real plans being discussed by business owners throughout our island. Putting these funds back into the private sector will have ripple effects that benefit the wider community. It’s an investment, not just in business, but in people.
The multiplier effect of this single public policy will be significant. A good investment in our people.
I’ve heard support for this measure from both public and private sector families. Whether it’s a mom-and-pop store in Mangilao or a gas station in Hagat, the concerns are the same. People want relief. They want growth. They want fairness. I believe that Bill 11-38 will not undermine the government’s ability to provide critical services. When the BPT was raised in 2018, it was meant to be temporary. The policy discussion then was about protecting core government services during a time of need. Now, years later, with residents seeing daily reminders of increased government spending and public pay adjustments, many believe it’s time to fulfill that original promise.
Let’s work together to deliver the relief our island has waited too long for. I respectfully ask for your support of Bill 11-38.
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Shawn Gumataotao is a member of the 38th Guam Legislature, the chairman of the Republican Party of Guam, and a resident of Talofofo.
