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Road Use Tax Amendment, RPPL No. 9-10 2013

PALAU

AN ACT

To amend Section 1404 of Title 40 of the Palau National Code to increase the road use fee for vehicles weighing over four thousand (4,000) pounds, and for other related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Legislative Findings. The Olbiil Era Kelulau finds that one need only take a drive on the Compact Road to the National Capitol to experience the inadequate maintenance of the roadways within the Republic of Palau. This drive to the National Capitol also demonstrates that large, heavy vehicles cause major damage to the roadways. It is the excessive weight of commercial vehicles such as dump trucks, concrete trucks and passenger buses that reduces the integrity of the roadways, enlarges pot holes, and worsens cracked pavement. As such, the Olbiil Era Kelulau deems it appropriate at this time to increase the road use tax on those vehicles that are most responsible for the damage to our roads. All of Palau's roadways will benefit from the establishment of a Road Maintenance Fund and a designated source of tax revenue dedicated solely to road infrastructure.

Section 2. Amendment. Section 1404 of Title 40 of the Palau National Code is hereby amended to read as follows:

"§ 1404. Road use tax.

(a) There is hereby assessed and levied an annual road use tax on all motor vehicles, including vehicles owned by all agencies of the National Government, state governments and state agencies, and public corporations. All agencies and public corporations that may be exempt from taxes under other laws of the Republic shall pay the road use tax. The road use tax shall be payable at the time required for registration of each vehicle to be assessed the road use tax as follows:

(1) All motor vehicles weighing two thousand (2,000) pounds or less -- fifty dollars ($50).

(2) All motor vehicles weighing between two thousand (2,000) and four thousand (4,000) pounds -- seventy five dollars ($75).

(3) All motor vehicles weighing between four thousand (4,000) pounds and six thousand (6,000) pounds-- two hundred dollars ($200).

(4) All motor vehicles weighing between six thousand (6,000) pounds and eight thousand (8,000) pounds –three hundred dollars ($300).

(5) All motor vehicles weighing between eight thousand (8,000) and ten thousand (10,000) pounds – five hundred dollars ($500).

(6) All motor vehicles weighing over ten thousand (10,000) pounds –seven hundred fifty dollars ($750).

(b) Road Maintenance Fund. There shall be established within the National Treasury a separate and distinct account for Road Maintenance. The total amount assessed and levied as an annual road use tax on all motor vehicles shall be deposited into the Road Maintenance Fund as collected to be used solely for the upkeep and maintenance of the Republic of Palau's national and state government roads."

Section 3. Effective Date. This Act shall take effect upon its approval by the President of the Republic of Palau or upon its becoming law without such approval, except as otherwise provided by law.

PASSED: August 02, 2013

Approved this 13th day of August , 2013

________________ /s/________________
Tommy E. Remengesau, Jr.
President of the Republic of Palau