Eugene D. Ramsey v. Manuel A. Chaco, Director of Revenue and Taxation

The plaintiff, a resident and taxpayer of the Territory of Guam, brought this suit to challenge certain abatement and rebatement tax provisions enacted by the Guam Territorial Legislature. The challenged sections provide for the certification of certain corporations by the Guam Economic Development Authority, with certain tax advantages accruing upon certification. While the certificates are not always identical, they typically provide for the abatement of local property taxes for a period of ten years, the rebate of 75 percent of all corporate income taxes for a period of 20 years, and a rebate of 75 percent of all income tax on dividends paid by the qualifying corporation for not more than five years. Plaintiff sought in district court to have these provisions declared unlawful and invalid, to compel the collection from particular corporations and individuals of taxes which had been abated or rebated pursuant to the provisions, and to restrain the members of the Board of Directors of the Guam Economic Development Authority and the Governor of Guam from issuing additional qualifying certificates for the abatement or rebatement of taxes. The district court granted…