January 15, 2001
Honorable Charles W. Turnbull
Governor of the Virgin Islands
Office of the Governor
Charlotte Amalie
St. Thomas, Virgin Islands, 00802
Dear Governor Turnbull:
By its nature an Omnibus Bill contains provisions to support and/or carry out a plethora of mandates. Included in this Omnibus Bill (No. 23-0306) are appropriations which permit the Executive to veto.
With this in mind, the League of Women Voters of the Virgin Islands outlines its grave concerns regarding several of these provisions and recommends a veto on each of the following sections:
Section 1.(b) proposes to institute a Personal Use Tax. As written, this proposal does not address the many particulars required to enforce such a tax, What does Shipped mean? By water Only ? By air? What?
Where will this tax be collected, at place of origin or in the Virgin Islands? If in the Virgin Islands, how will it be collected, by whom, and how will cost of the items be determined? Will food items and food products be included for Consideration for this tax? Have the net cost/benefits been determined?
Section 1.(c) provides for establishment of a six months amnesty on Property and Gross Receipt Taxes. As late as last year, Real Property and Gross Receipt tax amnesties were pursued unsuccessfully. In other words, tax collection in these categories for that period does not reflect increase as a result of implementation of that or prior amnesties. What suggests that another would be more successful this fiscal year?
On the contrary, such repeated amnesties encourage some taxpayers to ignore their tax obligations or to pay them at their own convenience with no interest or penalty or in fact, no regard for the law.
Section 1.(i ) proposes that the Governor seek federal approval to declare a fiscal state of emergency in the Virgin Islands and to request federal funding assistance. The League fears that the generality of this statement opens Pandora's box. What will be the reactions of the bondholders, prospective investors in the economy, federal legislators and bureaucratic officials in the U.S. Department of Interior?
Section 1. (j) provides for the Governor of the Virgin Islands to negotiate and
construct a hotel casino and conference center on V. I. Port Authority land at the Rohlsen Airport on St. Croix. Does this section raise the issue of the separation of jurisdictions? Is not the Port Authority an independent authority? On what legal authority is this Section based?
Section l.(n) (1) proposes amendments to the Election Law that would have the Supervisor of Elections under the control by the Boards of Elections. As always the League does not support piecemeal changes to remedy statutes governing major functions of the Government of the Virgin Islands and opposes any changes to the law as proposed that would politicize the Office of the Supervisor of Elections.
Section 1. (n) (2) provides for reports of candidates and elected officials not to include "an audit or audit performed by an certified public accountant." In the interest of campaign financing reform, should not this provision include 'must' rather than 'does not'?
Section 2. (c) proposes to rezone sixteen (16) plots and/or parcels of land which circumvents the rezoning statutes. The League reiterates its longstanding position against spot re-zoning.
Sections 2. (f) would authorize the Governor, on behalf of the people of the Virgin Islands, and with legislative approval. "… to approve a competitively negotiated contract award by the Commissioner of Public Works and validate agreements and contracts by the Commissioner of Public Works, and if required by law, by the Commissioner of Property and Procurement, with any person or entity …" for the purpose of financing the designing, constructing and/or repair of Solid Waste and Recovery Facilities at the Anguilla landfill on St. Croix and Bovoni Landfill on St. Thomas, respectively.
The purpose of the proposed measure is laudable, however, granting the Commissioner Public Works authority to negotiate contracts and agreements is of concern. The replacement of the Commissioner of Property and Procurement with the head of the user agency to negotiate contracts and agreements does not appear complete here, If this is deemed in the best interest of expediency and effectiveness, then the Section should have required that the Department of Public Works follow the policies of the hospitals and the Department of Education to include a contracting officer to carry out this mandate.
Section 2. (j) proposes to eliminate the Stop Tax Evasion Program. Each tax year the V.I. Bureau of Internal Revenue reports significant delinquencies in tax filings and nonpayment of taxes. Why remove a Stop Tax Evasion Program that otherwise needs full support?
Section 2. (m) (4) would appropriate from the Insurance Guaranty Fund for the current fiscal year, another $5.0 million as a contribution to the General Fund. The constant raiding of the Insurance Guaranty Fund no matter how worthy the cause, may result in an inability to maintain the floor of $50.0 million set by law. As a consequence, the insurance industry and the insured may be left unsecure.
Section 2. (n) would grant, inter alia , The Virgin Islands Dairy Industry an additional twenty-five years tax exemption, The particulars of the Section fall under a category of the Financial Recovery Task Force Initiative, Reform of Industrial Development Commission (IDC) Incentives. Initiative 4 supports expansion of the tax exempt duration. However, this recommendation sets certain conditions, ".. .consistent with a number of business considerations such as the amount of invested capital, loan amortization schedules, fee structures and depreciation schedules," Additionally, "Renewals, however, should be structured to require some payment of certain tax categories, e.g. real property, excise, income taxes."
None of the conditions for extension in support of the proposed tax exemption are included in the Section. This appears to be a piecemeal approach to solve a large problem which could be resolved with the reform of the overall industrial incentive policy.
The League of Women Voters of the Virgin Islands endorses without reservations the following Sections of this bill:
Sectionl.(e) proposes elimination of election days as a Virgin Islands
government holidays. The argument that a need to rent costly sites for polling places has little validity without proper and complete research.
Section 2. (e), proposes to restructure the composition of the Port Authority Board and removes the Commissioner of Tourism as chairman,
Section 2. (g), will create a Peace Officers Council whose functions would include setting the standards for the training and recruitment of peace officers as well as certification of peace officers.
Section 2. (h), provides for the Peace Officers Career Incentive Program which would grant pay differentials to "…a newly hired police officer, marshal of the Territorial Court, correction officer or fireman,," who earned a college degree or college credits prior to employment by the Government of the Virgin Islands.
Section 2. (i), would establish a number of Federal Equitable Sharing Program Fund trust accounts dedicated to receipt of the Virgin Islands' share of federal funds realized from certain law enforcement activities.
Section 2. (k), The positive contributions of the Territorial Court-Family Court appointed advocates–CASA Program on St. Croix more than indicate the need for this legislative support.
Section 2. (s) would reduce the interest rate the Government of the Virgin Islands pays on Judgments. Current economic parameters suggest the passage of this section is timely.
Section 3. (c) (q) proposes establishment of The One Stop Business Service Centers. If implemented, as spelt out in the Financial Recovery Task Report, the benefits should foster improved efficiency in the processing of applications for business licen
ses.
Section 3. (d), the 'GOVERNMENT PROCUREMENT CODE.' Given the depth of the public policies set forth in this Section. the League expects extensive training will be given to government employees and officials responsible for the administration and enforcement of the provisions of this Code, once it becomes law,
Sincerely,
Erva Denham
President, League of Women Voters of the Virgin Islands
