Bill seeks to expand property tax exemption for Guam homeowners

By Pacific Island Times News Staff

Sen. Shelly V. Calvo has introduced a bill that would raise the threshold for real property tax exemption to reflect the current market prices and ease the financial pressures on homeowners on Guam.

Bill 239-38 would set a property tax exemption of up to $350,000 in assessed value of land and improvements for owner-occupied residential homes acquired on and after Jan. 1, 2025.

Guam law currently provides an exemption on the first $50,000 of the appraised value. The amount is subtracted from the home's total appraised value before property tax is calculated.

Shelly Calvo

“Families across our island are doing everything they can to stay afloat,” she said. “Raising this exemption is a practical and responsible way to give homeowners real relief while ensuring the government still meets its obligations to the public.” 

Calvo said the bill takes into account Guam’s current market conditions, which affect the homeowners’ ability to pay mortgages,

property insurance, utilities and the overall cost of living.

Bill 239-38 replaces Bill 222-38, which set the threshold at $250,000. Calvo said the earlier version did not offer enough relief to families most affected by today’s economic realities.

Bill 239-38 “represents a more comprehensive and balanced approach—one that meaningfully helps homeowners without compromising the stability of the island’s revenue base,” she said.

Calvo said the bill reflects a long-overdue update to Guam’s tax code.

Guam's real property tax is among the lowest in the United States. Local law currently provides property tax exemptions for veterans, seniors and for some property uses such as religious, educational and farming.

The current exemption level has not kept pace with changes in construction costs, land values, or the needs of first-time homebuyers.

 “A home is the foundation of family stability and long-term financial security,” she said. “By updating this exemption, we’re acknowledging the real costs of living on Guam today and ensuring that hardworking families aren’t left behind.”

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