82.7 F
Cruz Bay
Sunday, October 17, 2021
HomeNewsLocal governmentPlaskett Announces Release of $272M in Rum Tax Payments to V.I.

Plaskett Announces Release of $272M in Rum Tax Payments to V.I.

Congresswoman Stacey E. Plaskett (File photo)
Congresswoman Stacey E. Plaskett (File photo)

Congresswoman Stacey Plaskett released the following statement regarding rum tax cover-over payments for estimated FY 2021 rum tax collections received by the Virgin Islands:

“The Virgin Islands will receive $272 million from the Office of Insular Affairs, [will] work closely with the Internal Revenue Service to ensure a quick and smooth transfer of these taxes back to the USVI. These funds will be critical to the U.S. Virgin Islands as they work to manage health and economic impacts of the coronavirus pandemic in the territories.

“Under the Revised Organic Act of the Virgin Islands, any excise taxes collected on USVI –manufactured rum imported into the mainland United States are transferred to or ‘covered-over’ to the USVI. Most federal excise taxes do not apply in the Virgin Islands. An exception, however, is provided by Section 7652 of the Internal Revenue Code, which applies a special excise tax to items produced in the USVI and shipped to the United States. The tax is equal to any excise tax that would apply to an identical item produced in one of the 50 states or the District of Columbia.

“All payments are certified by the U.S. Department of the Treasury.”

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.





Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
Load more
Print Friendly, PDF & Email