Definitions

For purposes of this Article 2, the following definitions will apply:

(a)“Authority”: The Guam Economic Development Authority

(GEDA)

(b)“Hotel”: For purposes of this Article and unless the context otherwise requires, hotel means a building facility that contains guest rooms held out to the public as a place where all transient persons, CH. 58 QUALIFYING CERTIFICATES including, but not limited to tourists, who come will be accommodated and entertained as guests for compensation based on daily or weekly rates.

(c)“Construction Cost”: Expenses incurred by a developer for the construction of any new hotel or for the expansion of any existing hotel in Guam. Such costs include land acquisition, building and site improvements, A&E and FF&E.

(d)“Hotel Expansion or Renovation”: Existing Guam hotels may be eligible for this Special Hotel QC if new capital investment is to be made that will either add to the hotel’s room inventory or significantly renovate the property.

(e)“Renovation Cost”: Expenses incurred from modernizing the elements within a structural part of real property, whose total costs are no less than ten percent (10%) of the property value, and that either:

(1)materially increases the value of the property;

(2)substantially prolongs the useful life of the property; or

(3)adapts the property to a new or better use.

(f)“Property Value”: The current appraised value of the land and improvements. The cost of such appraisal shall be borne by the hotel developer. An applicant may provide a previously completed appraisal, granted that such appraisal was performed within one hundred eighty

(180)days of the date of application filing.

(g)“Business Privilege Tax (BPT)”: The tax that is levied on business revenues as imposed by § 26201 of Article 2, Chapter 26, Title 11, GCA.

(h)“Use Tax”: The tax that is levied on the landed value of or consumption of all property as defined by Chapter 28 of Title 11 GCA.