By Susan Mann
Caribbean Net News St Thomas-St John Correspondent
Email: susan@caribbeannetnews.com
ST THOMAS, USVI: Governor John deJongh Jr. and Lt. Governor Gregory Francis, along with Tax Assessor Roy Martin and other US Virgin Island government officials, met behind closed doors with members of the Legislature on September 27, to review the current status of real property taxation in the Territory and to outline the Administration’s proposals.
While the public learned about the scheduled meeting as a result of a routine announcement from the Senate Floor, no members of the news media or other interested parties were permitted to attend the meeting. This was an unpopular choice on the part of Government House because no reason was given for the closed meeting, and many local residents, recently stunned by the increases reflected by their new tax bills were eager for any word of a possible remedy.
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| US Virgin Islands government officials meet on tax issues |
Late September 27, deJongh made the following statement, “We must regain local control of our property tax system here in the Virgin Islands. The meeting today was an important next step towards doing just that as legislation will be required and that is always best done cooperatively.”
The main cause for the current tax-related problems facing the government stem from litigation that has stymied the territory from sending out anything other than old (tax) bills while the court-ordered revaluation of all property was completed.
The real estate market in the US Virgin Islands has changed dramatically in the years since 1998 and these changes have not been reflected in the annual property tax bills.
DeJongh also stated that as a result of the steady and hard work of many persons both prior to his Administration and during the last nine months, the Virgin Islands is now at a point where it can approach the US District Court to seek approval of a constitutional and modernized real property taxation system.
The Governor said the Tax Assessor’s office and its consultants are continuing to work with all property owners to be sure the recently mailed Revaluation (tax) notices are correct.
In a press release, deJongh said the recent budget as passed by the Senate for the Governor’s signature was premised on an increase of 10 million dollars from the amount last collected under the old system of unrevised property tax assessments and the old rate which equaled 3/4 of one percent of the fair market valuation of the property being taxed.
In order to not unduly impact homeowners, the elderly, and to recognize the fact that the past system had not been updated or revised for decades, the administration outlined proposals to differentiate tax rates for residential property, land, commercial property and timeshares as well as to modernize and increase the exemptions previously available for homesteads, the elderly, and veterans.
This was done to assure that the recent revaluation of property values across the territory does not work against the goal of homeownership for Virgin Islanders. The proposed rates are a reduction in the rate for residential property owners as well as commercial properties.
Also outlined was a specific method to mitigate the effects where property owners have experienced extraordinary increases in taxation of over 125% by providing additional tax relief.
“Greg Francis and I both know that the subject of taxes is never a welcome one, but it is one that this administration inherited and we pledge to work closely with the leadership and the members of the Legislature in finalizing this required legislation. This proposal is essential for the territory to regain control of its real property tax system and necessary for the raising of the revenues needed to for the government to provide adequate services and Commensurate salaries without interruption,” deJongh said.
In the aftermath of the meeting, Gov. John deJongh said Saturday that the administration welcomes any proposal from members of the Senate on the revaluation of real property taxes.
“The ramifications of our decisions in this area are too important not to engage in a give-and- take between the Senate and the administration. I make a distinction between a comment and submission of a formal proposal, and as of right now, there is no proposal from the Senate on the table,” deJongh said.
The administration is continuing to work on proposed legislation that will be sent to the legislative body for its consideration within the next ten days to address this sensitive issue, deJongh added.
Also under consideration is a plan that would centralize all aspects of property taxation and collection at the Department of Finance to create a “one-stop” for residents who have questions or concerns about their taxes or for those who want to pay their taxes. At the present time, the process is splintered across several agencies of the Government.
While the extreme taxation increase significantly impacts property owners on each of the territories four islands, local residents of the island of St John have been hit especially hard.
Coral Bay Community Council, Inc (St. John) President Sharon Coldren sent a letter to the Governor, and others stating, “…people who have lived here all their lives are facing a 600 to 1000 percent increases (or more).”
The letter also indicates that, “the valuation…model starts a 360 dollar per square foot average valuation for housing buildings on St John, compared to 93 dollars on St Thomas and 89 dollars on St Croix.” | 
