April 2, 2001 — Sen. Norman Jn Baptiste is proposing levying heavy "sin" taxes on a variety of goods and a luxury tax on some cars to pay for a scholarship program aimed at increasing the number of local teachers.
Last week his bill, the Teacher Recruitment and Training Act, topped the agenda for a meeting of the legislative Education Committee, which he chairs. He cancelled the meeting for lack of a quorum, but is expected to reschedule soon.
The tax side of the bill is likely to draw opposition especially from retailers who cater to visitors since it will increase the price of two popular tourist purchases, liquor and cigarettes.
The excise taxes on cigarettes would increase by 25 cents a pack. Excise taxes on whiskies, liqueurs, beer, wine, brandies and alcohol also would increase substantially, depending on the type, but local rum would be exempt.
The bill also would impose a luxury tax on automobiles brought into the territory that cost more than $25,000. Upon importation the dealer would be required to pay a 3 percent tax on the amount of the car's value over $25,000. That tax would no doubt be passed along to the consumer at the time of purchase. It would be paid only one time, not annually.
The money collected is to fund up to six full scholarships in education per year at the University of the Virgin Islands. Recipients would receive full tuition as well as room and board, and they would be eligible for an additional stipend of $1,500.
Applicants for the scholarship must "declare in writing their intention to teach in the public schools of the territory for a period of not less than four years upon graduation."
Any recipient who does not complete the course of study or who does not fulfill the employment promise — assuming there is an opening in the public schools — would be liable for paying back the scholarship money.
Graduates of accredited high schools who are either attending UVI or accepted to the university and who are U.S. citizens or legal permanent residents are eligible for the scholarships. UVI's board of trustees and president are charged with setting up the actual program and may add more eligibility criteria.
The commissioner of Education also would be involved in the program and is supposed to submit a plan for its implementation each year on or before Sept. 1.
The bill states that the program should begin in the 2001-2002 school year, if possible.
Neither UVI President Orville Kean nor Education Commissioner Ruby Simmonds could be reached Monday for comment on the proposal.
