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Tag: Guam

  • Guam Floats Discount to Cig Wholesalers to Offset Stamp Machine

    Guam Floats Discount to Cig Wholesalers to Offset Stamp Machine

    Guam has introduced legislation that would increase the tax discount given to cigarette wholesalers from 4 cents to 15 cents per pack to help offset the high costs of operating tobacco tax stamp machines now required under local law. The proposal comes after the Department of Revenue and Taxation began requiring wholesalers to produce and affix their own stamps to verify tax payments, with each machine costing nearly $200,000 and requiring additional staff, climate-controlled storage, and maintenance. Support for the measure was voiced by Western Sales Trading Company, which said it had to hire up to 10 employees and invest heavily in infrastructure to comply.

    Data said the 3.75% discount is the proper balance between industry costs and government revenue collection. Previous audits by the Office of Public Accountability found that tobacco taxes were historically difficult to verify due to limited tracking of imports, with Public Auditor Benjamin Cruz noting that authorities still lack accurate data on tobacco shipments entering the territory.

  • Guam Police Required for School Smoking Incidents

    Guam Police Required for School Smoking Incidents

    Police in Guam will now respond to incidents involving students vaping or using tobacco products on public school campuses following a policy update by the Guam Department of Education (GDOE). Under revised Student Discipline SOP 1200-018, nicotine violations are now classified as behaviors requiring mandatory contact with the Guam Police Department (GPD).

    Under the new procedure, GPD officers will confiscate tobacco or vaping devices, document the incident, issue a notice to appear before the Juvenile Section, and forward cases to the Office of the Attorney General. The policy takes effect immediately after school administrators confirm a violation and notify a student’s parent or guardian, at which point GDOE will initiate a call for police service.

    GDOE said the change follows a rise in vaping and nicotine violations on campuses and guidance from GPD leadership, citing the need to enforce the Youth Protection Act of 2017.

  • Guam Tobacco Retail Compliance Tops 97%

    Guam Tobacco Retail Compliance Tops 97%

    Compliance inspections found that 97.1% of Guam tobacco retailers complied with laws prohibiting sales to minors in 2025, according to data released January 5 by the Guam Behavioral Health and Wellness Center (GBHWC) and the Department of Revenue and Taxation (DRT). The compliance rate increased from 94.8% in 2024, well above the federally required minimum of 80% under the Synar Amendment.

    Out of 277 eligible retailers inspected, only eight were cited for selling tobacco or disposable ENDS products to minors ages 16–20, and one retailer failed to post a required “No Sale Under 21” sign. The nine establishments received citations ranging from $2,000 to $4,000.

    Officials credited strong enforcement and education efforts, including GBHWC’s Merchant Education Outreach Program, launched in 2025, which provides door-to-door education and compliance resources.

  • Guam Introduces Bill to Regulate Vapes

    Guam Introduces Bill to Regulate Vapes

    A new bill has been introduced in Guam to regulate vapor products, reports The Guam Daily Post. The bill, Bill 3-38, is known as the Electronic Nicotine Delivery Systems Excise Tax of 2025. It would establish a licensing and tax structure for vaping devices and electronic cigarette products.

    The bill is “not about penalizing adults who make personal choices,” according to bill author Joe San Agustin, but it is about “protecting our young people, promoting public health, and ensuring that a profitable enterprise in Guam contributes equitably to the island’s well-being.”

    The bill would create strict age restrictions and random inspections as well as penalties for retailers caught selling electronic nicotine-delivery systems (ENDS) to minors. It would also establish a clear licensing structure for wholesalers and retailers.

    “While it is unclear what is ideal for the government of Guam, Bill 3-38 COR takes that first step toward addressing ENDS products as a separate group,” said Maria Lizama, director of the Department of Revenue and Taxation. “And we hope that better practices will eventually emerge.”

    If the bill passes, the department plans to develop internal systems to classify and report ENDS products distinctly from other products. “I’m not saying it’s going to be easy….We will simply have to comply,” said Lizama.

    The department is still discussing how the tax will be classified. “It’s a complex issue,” said Lizama. “Our initial thoughts were to just do an across-the-board, whether it’s the refillable part of it, whether it’s the one-time use, whether it’s the heating element, (or)…other gadgets,” she added. “We believe that’s probably the easiest for now, and then as we continue along, we also believe a better plan to tax will emerge.”

    Governor Lou Leon Guerrero suggested taxation at the wholesale level, but that was met with concerns of monopolization.

    “The biggest problem is wholesalers wanting to control the product.  There’s only one wholesaler on the island that actually sells vape products,” said Senator Telo Taitague.

    Easy youth access prompted the call for specific retailers selling ENDS products. “We’re having a lot of issues with kids getting their hands on it and going into a gas station. (It’s) as easy as that. It’s easy to pickpocket from the counter,” Taitague said. “But when you’re in one of these stores [ENDS retailers], they’ve got cameras everywhere. You can’t even step in there unless you’re 18 years old.”

    “It certainly would make things easier for our team,” Lizama said of specific ENDS retailers. “It will also perhaps provide greater control.”