What Does the New Remittance Tax Mean for the CNMI?

I also wrote to Treasury Secretary Scott Bessent last week seeking clarification on the new 1 percent excise tax on certain remittance transfers enacted under H.R. 1, The One Big Beautiful Bill Act. The CNMI operates under a mirror tax system, so we need clarity on whether this new federal tax applies to remittances originating from the Commonwealth and, if it does, how those revenues will be treated. CNMI residents send, on average, $82 million in remittances each year. If the tax applies and those revenues are required to be covered back to the Commonwealth, that could mean hundreds of thousands of dollars in additional annual revenue for the CNMI government. At a time when our government is facing exceptionally tight budgets, we need to make sure every dollar legally owed to the Commonwealth makes its way home. I have asked Treasury for clarification so we know exactly how this new provision applies to the CNMI and what revenues our government may be entitled to receive.