The St. Thomas-St. John Chamber of Commerce has weighed in on a spate of controversial legislation passed in the closing days of the 23rd Legislature, urging Gov. Charles W. Turnbull to approve much of it but recommending he veto some portions.
In an 8-page letter to the governor, chamber president John P. de Jongh, Jr., notes that many of initiatives already had the support of the business community; some are recommendations pulled directly from the Five Year Operating and Strategic Plan, which was the work of a task force that de Jongh co-chaired.
Many of the proposals are contained in the Omnibus Act, the comprehensive policy document which the Legislature passed along with the 2001 budget in December. Others are separate measures considered at the same time.
Noting that the organization limited its comments to measures it has worked on and/or which pertain to revenue initiatives, de Jongh said the chamber basically endorses:
* Creation of an Economic Development Authority
* Creation of a Tourism Authority
* Creation of a Tax Study Commission
* Approval of the Technology Enterprise Act
* Approval of the Cruise Ship Task Force Agreement
* Restructuring of the Port Authority Board
* Elimination of the Stop Tax Evasion Program
* Revisions to the Captive Insurance Law
* Approval of the Employment Enhancement Act of 2000
* Amending the Unemployment Rate Tax to even out payments from employers
* Adoption of a Uniform Commercial Code
The chamber is urging Turnbull to veto the following items:
* An increase in the hotel room occupancy tax from $8 a day to $10
* A personal use tax on items brought into the territory
* A property and gross receipts tax amnesty
* A provision encouraging the governor to declare a state of fiscal emergency
* A decrease in the interest the government pays of judgments and decrees
The chamber "wholeheartedly endorses" the creation of an Economic Development Authority by combining the existing agencies of the Government Development Bank, the Industrial Development Commission, the Industrial Park Development Corporation, the Bureau of Economic Research and the Small Business Development Agency, de Jongh states. However, the chamber suggests that the proposed revisions to the IDC be "further fine tuned" by the Tax Study Commission.
The Technology Enterprise Act and the Uniform Commercial Code "are key initiatives that will ensure the competitive positioning of the U.S. Virgin Islands in attracting businesses to the territory," de Jongh said.
The chamber told Turnbull that various tax proposals should be considered by the Tax Study Commission. "For far too long, we have initiated short term and uncoordinated revisions to various taxes and fees without regard to competition from other jurisdictions, direct financial impact on the business or the government's revenue need." To implement an increase to the hotel tax, for example, "without a transitional period. . . and without regard to existing contractual agreements that have established pricing is counterproductive to the whole exercise and financial intent."
At the same time, the chamber asked Turnbull to reject a tax amnesty program, arguing that unless they are carefully planned, they can cost the government money.
De Jongh concluded his letter with a description of the Virgin Islands economy as "lagging and stagnant" in recent years, and with a pledge to work with the government "to achieve real private sector growth of our economy, stability of our workforce and ability of our government to deliver quality services."
