Dear Source:
Since I was at the Rotary Club meeting where Mr. Roy Martin spoke about the impending changes to property taxes in the Virgin Islands, and Mr. Hansen was not, please let me clarify a few things. First of all, Mr. Martin did not propose any difference in the tax rates for each island, but merely responded to a question from the audience as to the possibility of a different rate for each island. He said that since Congress had repealed the 1936 law which governed property taxes in the territory that such an approach would be possible. Possible. That's all. And the question was offered, not in an attempt to subvert the taxation on the basis of value, but as a possible basis to keep the tax system "revenue neutral" as Mr. Martin observed was the desirable outcome. Since property values on St Thomas and St Croix have risen modestly while those on St John have increased five and ten-fold, application of the same tax rates across the territory could result in many St Johnians being taxed out of their homes while property taxes on St Thomas and St Croix would actually decrease. This is not a desirable outcome in my view.
Mr. Hansen makes a number of valid points, but his whole letter is based on an erroneous understanding of both the questioner's intent and Mr. Martin's answers.
On behalf of the Rotary Club of St John I want to express our appreciation to Mr. Martin for having the courage to come to our meeting and speak to us on this very volatile and emotionally charged issue. His openness and candor speak well for the deJongh administration.
John Fuller
St John
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