Reprinted from Caribbean Net News
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USVI property tax law passes

Thursday, December 7, 2006

by: Susan Mann
Caribbean Net News St John Correspondent
Email: susan@caribbeannetnews.com

ST JOHN, USVI: A bill that affirms the right of the US Virgin Islands to set its own tax policy was passed by the US House of Representatives late Wednesday.

The bill, S.1829, will repeal a 1936 federal law that limits the ability of local legislators to provide a measure of relief for the anticipated significant property taxes increases in the territory.

Congressional Delegate Donna M. Christensen, introduced a companion bill to S. 1829 at the beginning of the 109th Congress in response to concerns over a court ruling that found the US Virgin Islands in violation of a 1936 tax law. Several tax exemptions, which could have impacted middle and low income residents, go as far back as 1957.

The Delegate indicated the island of St. Croix was most at-risk by the court ruling. Addressing the House floor, Christensen said, " it was crucial to pass the measure before the adjournment of the 109th Congress so that Virgin Islands property owners will not have to face increased property taxes as early as this January and would not face the real threat of losing their homes."

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