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Thursday, March 28, 2024
HomeNewsArchivesRules Committee Approves Hotel Tax-Incentive Plan

Rules Committee Approves Hotel Tax-Incentive Plan

Sen. Usie Richards speaks during the Rules Committee meeting.Would-be V.I. hotel developers will be able to pledge their future hotel and casino taxes as loan collateral if a bill sent out of the Rules and Judiciary Committee Thursday for a final vote on the Senate Floor becomes law.

The bill, sponsored by Sen. Louis Hill and others, would create a hotel development program within the V.I. Economic Development Authority that’s similar to, but more generous than, the tax-increment financing – called TIF – spearheaded by the de Jongh administration in order to bring Home Depot to St. Croix.

Along with helping developers with information about financing, the program would have the EDA administer trust funds for each qualifying new development, placing hotel and casino taxes from the qualifying development into the fund, which would then be used to pay a portion of the developer’s loans.

As with the TIF program, the government loses no real revenue because the taxes that would go toward developers’ loan payments would not be owed the government at all if the projects they finance do not come to fruition.

Some senators opposed the bill, expressing concern that, although intended to help St. Croix develop more hotels, it would end up subsidizing more St. Thomas development.
Voting to send the bill on for a final vote before the full Legislature were Sens. Carlton "Ital" Dowe, Alicia "Chucky" Hansen and Sammuel Sanes. Voting nay were Sens. Usie Richards and Celestino White. Absent were Sens. Patrick Sprauve and Ronald Russell.

Rules and Judiciary forwarded on a bill to increase the maximum cap on the settlement of claims against the government for vehicular damages from $3,000 to $6,000 and mandating people who properly file claims that government employees negligently damaged their vehicles while on the job would automatically be awarded up to $6,000 in damages "if such payments are not made within 30 days."

The committee also approved bills to:

• Mandate the V.I. Internal Revenue Bureau provide direct deposit of tax refunds;

• Rename the Dorothea Fire Station "The Emile Berry Fire Station and Multipurpose Center;" and

• Clarify out-of-date language regarding the role and procedures of the V.I. Bureau of Motor Vehicles.

The committee tabled bills to ban saltwater flushing of toilets and to eliminate tax clearance letters as a requirement for renewing businesses licenses.

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