Be it enacted by the Legislature of the State of Yap.

Section 1.

Title 13 of the Yap State Code is hereby amended by enacting a new Section 107 to be read as follows: “Section 107. Qualified Tax Exemptions and Rebates. The Director of Administrative Services is hereby authorized to set forth regulations that specify certain tax exemptions and rebates for locally established and registered businesses and organizations with the State of Yap.

(a) Tax Exemption shall be for goods and services that are donations from foreign governments and civil societies and qualified under the regulations as ‘foreign aid’.

(b) Business and organizations in good standing with the governments of Yap State may apply for tax rebates which follow a set schedule. Such rebates would be for the following categories:

“(1) Sponsorship of a sport team, organization, or association where the amount rebated would not be less than 50% of amount spent on sponsorship.

(2) Contributions to duly registered fundraising events, certified by the Treasurer which raises money for educational, charitable or public purposes, the rebates of which would not be less than 10% of amount spent on the fundraising.

(3) Contributions to disaster relief would not be less than 60% of the amount paid.”

Section 2.

Sections 107 through 114 is hereby renumbered as Sections 108 through 115, respectively.

Section 3.

The Director of Administrative Services shall develop regulations and procedures for specific implementation of this Act within six months of this Act becoming law.

Section 4.

This Act shall take effect upon approval by the Governor or upon its becoming law without such approval.