Instead of tackling dozens of bills appropriating millions of dollars for government and semi-government entities and the government’s 2014 budget, now with a $35 million hole in it, the Senate Committee on Finance approved two land sales and a stamp tax bill and sent it on to the Rules Committee.
On the Finance Committee’s agenda for Thursday – along with Bill no. 30-0177 – were 30 bills appropriating more than $200 million to fund various departments and quasi government agencies, the courts and the University of the Virgin Islands.
After the tax stamp bill, no. 30-0177, was sent forward to the Rules Committee, Sen. Myron Jackson made a motion to waive rules of the Legislature in order to consider the budget bills on the agenda. Jackson and Sens. Clifford Graham and Clarence Payne voted in favor. Sens. Nereida “Nellie” Rivera-O’Reilly and Judi Buckley did not vote.
But the budget bills weren’t brought forward for discussion.
Instead Committee Chairman Graham called for a recess to study a budget reportedly submitted in the last few days by the governor. Graham also addressed the recent reduction of $35 million projected to be lost from the rum cover over tax.
After the lengthy recess, Payne moved to hold the Fiscal Year 2014 appropriations bills in committee and the motion passed.
Graham recommended that new V.I. operating budget be held as well, due to the large amount of lost revenue that will need to be covered.
“The rum cover over will be going back to $10.50 instead of $13.25 (per proof gallon). As a result the fiscal year ’14 budget, as balanced by the body and called up for consideration has a $35 million hole,” Graham said. “Yes, there are several items to bridge this gap that could be done but in the light of sudden rules – the recent rules – it is really a lot to consider in a short period of time.”
Earlier this week, the U. S. Department of the Interior notified the V.I. government that the annual advance of the excise tax was cut 26 percent. In August, the Virgin Islands had requested an advance payment of $263.9 million but will only receive $193.1 million, officials learned. The reduction was due to the uncertainty of upcoming congressional budget talks, they were told.
After putting the budgets on hold, two land contracts, held in committee since February, were approved. By law, the Senate approves all government leases and land purchases.
Rivera-O’Reilly and Buckley voted against the St. Croix deal because they said the V.I. government could have had the land for nothing but didn’t move fast enough. Buckley added the government doesn’t have the money to build a police substation on the Cotton Valley parcel and the V.I. Police Department doesn’t have the manpower.
“I don’t think it would be smart for any of us to spend money at this time,” Buckley said.
Jackson made the motion to refer the St. Croix purchase from the Phyllis M. Saunders Trust for $48,000 and to obtain the Bovoni Cay property from the Patti Birch 1991 Trust to be used for conservation and recreation. Jackson, Payne and Graham voted in favor and Buckley and O’Reilly voted against both sales contracts. No sales price for the Bovoni parcel was stated.
After a two minute recess, the land contract bills were re-read, put forth by Jackson and Payne and voted on separately. The motion carried again.
The stamp tax measure, Bill 30-0177, clarifies some of the entities to be exempt from paying the tax during title transfers, such as family trusts and nonprofit organizations. The committee voted to amend the bill and require nonprofit organizations to provide a certificate of good standing when applying for tax stamp exemption and another amendment eliminated trustees as recipients unless they are family members and beneficiaries.
Testifying in support of the bill were attorney Richard Bourne-Vanneck and acting attorney general Wayne Anderson. Anderson discussed a list of recommendations for those seeking the exemption, such as identification of beneficiaries, documentation of the family relationship and to verify entities are authorized to make the transactions.
Voting in favor were Graham, O’Reilly, Payne, Buckley and Jackson. Excused from the hearing were Sens. Donald Cole and Terrance “Positive” Nelson.
