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Re: new property tax proposal

PostPosted: Thu Jun 29, 2017 6:56 pm
by jimg20
Loria, please tell us how to reach her.

JIM

Re: new property tax proposal

PostPosted: Fri Jun 30, 2017 9:44 am
by iheartsj
Many of the villas being built are actually commercial businesses and should be taxed at the commercial rate that is 1/2 of this new villa rate. The people who build these villas don't live here and don't contribute to the economy by paying their income taxes to the USVI government.

On the other hand many of these rentals are in personal homes (a adjacent cottage, a separate bedroom suite etc. The people who own these homes are just trying to get by living in this very expensive location.

My suggestion is that the commercial owned villas be charged the commercial
rate rather than residential rate.

I am also curious why people invest in these commercial enterprises but constantly complain that they can't break even. Why do you keep a business that you are losing money on?

Re: new property tax proposal

PostPosted: Fri Jun 30, 2017 9:44 am
by iheartsj
Many of the villas being built are actually commercial businesses and should be taxed at the commercial rate that is 1/2 of this new villa rate. The people who build these villas don't live here and don't contribute to the economy by paying their income taxes to the USVI government.

On the other hand many of these rentals are in personal homes (a adjacent cottage, a separate bedroom suite etc. The people who own these homes are just trying to get by living in this very expensive location.

My suggestion is that the commercial owned villas be charged the commercial
rate rather than residential rate.

I am also curious why people invest in these commercial enterprises but constantly complain that they can't break even. Why do you keep a business that you are losing money on?

Re: new property tax proposal

PostPosted: Fri Jun 30, 2017 9:46 am
by loria
it looks as if the issue has been tabled - will confirm later today - the number for the legislatures office is 340-774-0880-

this isn't going to go away -- but a more equitable solution needs to be considered

Re: new property tax proposal

PostPosted: Fri Jun 30, 2017 7:05 pm
by iheartsj
tupelodent the VI government didn't send out tax bills for a number of years. and then started sending out 2 per year to catch.

Our real estate offer included paying off the back taxes at a reduced purchase price.

Re: new property tax proposal

PostPosted: Wed Jul 19, 2017 8:07 am
by Coconuts
I'm not at all sure that this issue "has been tabled". I just heard that the VI Senate is considering a 6X increase, but I haven't been able to corroborate that yet. There is a hearing on St. John this evening; we are off island, but know people who will be attending. I'll post what I hear from the meeting. This is pretty serious stuff.

All the best,

Kevin

Re: new property tax proposal

PostPosted: Wed Jul 19, 2017 8:45 am
by Donnasculpts
The meeting scheduled for tonight by Sen. Blyden has been cancelled. He has shelved the idea pending "other measures" about to be proposed to resolve the issue ... so stay tuned for what that may be.

Re: new property tax proposal

PostPosted: Sun Jul 23, 2017 9:21 am
by Coconuts
We found out some more about what led up to the meeting being cancelled. Realtor Karye Carney (www.soldonstjohn.com) and her Board were instrumental in stopping this initiative. She sold us our lot on Mamie Peak back in 2001, as well as Coconuts in 2010 (Plumeria in 2013 was a direct purchase from our neighbor). I hadn't realized it, but Karye will soon become the President of the Virgin Islands Territorial Board of Realtors. If you want to name a powerful group of organized professionals with a LOT to lose if this initiative passes, they would be it. We villa owners tend to be a lot less organized and professional. Knowing Karye will really help to keep us clued in; we'll post in this thread if we learn more.

Email response from Karye to Danielle below:

Hi Danielle,
I am not sure of that episode but will check. There are two more airing very soon so I’ll let you know when.
Hope to see you guys when you are down.
As incoming president for the Virgin Islands Territorial Board of Realtors, we (St Thomas Board, St Croix Board and St John Board) joined forces with the Chamber of Commerce, David Bornn Esq. and others for a meeting with Senator Bliden who proposed the Legislation. We were able to stop the proposal and have him pull the bill and cancel all scheduled Town Hall meetings on the three islands due to our efforts. We will remain vigilant against anything that negatively impacts our robust economy.

Karye

Re: new property tax proposal

PostPosted: Sun Jul 23, 2017 1:33 pm
by Exit Zero
Hopefully the incoming president will correctly spell Sen. Blyden's name in any more published releases - it would serve her interest.

Re: new property tax proposal

PostPosted: Sat Jul 29, 2017 7:13 am
by Coconuts
After the trial balloon of jacking villa tax rates through the roof received appropriate pushback for its consequences to the island's economy, Governor Mapp's approach to dealing with the VI's budget woes has shifted. The new themes, which have long been mentioned as potential ways to bridge the gap, involve significant cuts to government spending, as well as the novel theme of actually collecting most or all of the current taxes that are due, as well as a focus on collecting some delinquent taxes. Lax enforcement of tax collection has long been discussed as a major problem, and perhaps this time around enforcement will actually be tightened. With the total of delinquent taxes estimated to be as high as $400 million, the new budget's estimate of recovering only $16 million of this in the coming year would seem to be conservative and achievable. Together with an additional $21 million from efficient collection of current tax obligations, $11 million from the new taxes on alcohol, sodas, and cigarettes, and $68 million in cuts to government spending, there is still a shot of avoiding additional debt financing, which has essential dried up due to credit agency downgrades.

Looming over everything, however, is the pending insolvency of GERS, the Government Employee Retirement System, whose unfunded liabilities of over $4 billion dollars exceed the GDP of the entire VI.

Read about the new approaches here, in the St. John Source:

http://stjohnsource.com/2017/07/26/omb- ... ollection/

All the best,

Kevin