May 20, 2009 – Virgin Islands property owners are informed that applications are available to file for property tax credits against their 2007 property tax bills. Property owners have until the close of business on Tuesday, June 30, 2009 to apply for the tax credits. Property owners of record as of Jan. 1, 2008 may be eligible to apply for these credits, according to a press release from the Office of the Lieutenant Governor.
Property tax credits are offered in six categories. According to Acting Tax Assessor Bernadette C. Williams, property owners may not apply for more than two credits: homestead and any one of the other categories for which they may be eligible. The Tax Assessors Office is presently accepting tax credit applications for the following categories:
1. General Homestead: Property owners who occupied the home as their primary residence as of Jan. 1, 2008 are eligible. Applicants must show proof of residency by providing a valid United States Virgin Islands
driver's license or voter's registration card. Applicants are also asked to show proof of occupancy by providing a current utility bill.
Maximum tax credit: $400
2. Veterans: Property owners must meet occupancy requirements and have been honorably discharged from the U.S. Armed Services. Applicants must provide a copy of their DD-214 at the time of filing in addition to a valid U.S.V.I. driver's license or voter registration card.
Maximum tax credit: $650
3. Seniors: Property owners must meet occupancy requirements. Applicants are also eligible to claim this credit for properties held by tenants in the entireties if either spouse is 60 years or older on Jan. 1, 2008. The credit is available only when individual Annual Gross Income (AGI) is less than $30,000 and household AGI does not exceed $50,000. Applicants are asked to provide a stamped copy of their 2007 tax return and proof of age at time of application.
Maximum Tax Credit: $500
4. Disabled: Applicants must meet occupancy requirements and be suffering from a disability as determined by the Social Security Administration as of Jan. 1, 2008. Applicants are required to provide documentation from the SSA at time of filing, as well as a stamped copy of their 2007 tax return to verify they meet the income requirement.
Maximum Tax Credit: $500
5. Class 1 Inheritance: Applicants must be owners of unimproved property of 5 acres or less. The property owner must have acquired the property through inheritance.
Tax Credit: Credit is equal to 80 percent of the real property taxes levied until $5,000 or more of improvements are made on said property.
6. Tax Credit Circuit Breaker: Available to property owners whose property tax bills increased by 125 percent or more and whose household gross income is less than $135,000.
Tax Credit: Credit is equal to 40 percent of the real property tax increase for homestead and unimproved property; tax credit is not to exceed $5,000.
Property owners who have not applied for the tax credits, formerly known as exemptions, are encouraged to visit the Tax Assessors Office on their respective island, or contact the office at 776-8505 on St. Thomas; 776-6737 on St. John; 773-6459 for Christiansted, St. Croix; or 772-3115 for Frederiksted, St. Croix.
