Dec. 9, 2006 — The U.S. House of Representatives Friday passed a two-year extension of the territory's rum tax rebate provision.
The rebate brings the territory about $20 million a year. The territory receives the money for each proof gallon of V.I. rum shipped to the mainland, Gov. Charles Turnbull said in a news release issued Saturday. The U.S. Senate is expected to pass on the measure this weekend or before the term concludes this month, he said.
"I am pleased that Congress has passed this important legislation in its waning hours," Turnbull said.
The measure is retroactive to Jan. 1, 2006. It was included in a package of expiring tax provisions. The territory gets $13.25 per proof gallon, which is 25 cents shy of the total tax amount generated when the rum is sold.
If the U.S. Congress didn't pass the measure, the figure would revert back to the original $10.50 per proof gallon mandated when the rum tax rebate began in 1984. After lobbying by Delegate Donna M. Christensen and Turnbull, the figure increased to $13.25 in 1999.
Christensen said in a news release issued Friday that she plans to continue efforts to convince members of Congress to rebate the entire $13.50 per proof gallon to the V.I. government. Since the territory began getting the $13.25 per proof gallon, Turnbull said, its coffers swelled by $120 million.
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