Residents of the U.S. Virgin Islands are taxed, generally, under the same statutes, rules and regulations as residents of the United States. The principle exception is that corporations must pay a V.I. surcharge equal to 10% of their corporate income tax. U.S. citizens with U.S. Virgin Islands source income are required to file a duplicate income tax return, Form 1040, with the V.I. Bureau of Internal Revenue (VIBiR) and pay tax, if due, on their V.I. source income. Any tax paid to the VIBiR is a direct reduction of the total tax liability of the individual. Form 8689, Allocation of V.I. Source Income, is the IRS form to be used for this computation and credit.

There is no sales tax in the USVI; however, there is a tax of 4% levied on the gross receipts of all businesses. Businesses with annual gross revenues under $150,000 per year can exclude $5,000 per month from their taxable base.

Excise taxes range from 2 - 15% of the net invoice value plus a markup of 5% on items brought into the VI for business or resale. In 1993, the government imposed 4% excise tax on imported personal goods (large appliances and furniture) valued at $500 or more. Vehicle shipping from West Palm, FL to STT costs $700 (if made in US, enters duty free; made outside US there is a 6% duty; made with foreign parts 3.5% duty). Maximum duty rate is 6% of invoice value of foreign goods and there is no local duty on US made products.

Damage from Hugo (1989) and Marilyn (1995) resulted in improved building codes and variable insurance rates. Georges (1998), Jose (1999) and Lenny (1999) all went right over us and left no major damage. Hurricane mitigation helps! All buildings now must be engineered to withstand a minimum wind speed of up to 110 mph & zone 4 earthquake provisions. Windstorm/earthquake insurance cost is about 2% to 4% of property value depending on construction (wood frame is higher than masonry).

Virgin Islands zoning, building & housing laws & regulations may be obtained from the Office of the Lieutenant Governor, accounting section, 18 Kongens Gade, St. Thomas VI 00802 Phone (340) 774-2991. Click here for zoning map.

Property taxes are levied at 1.25% / $1000.00 of 60% assessed value of the property or $0.75 per $100.00 assessed value.

To obtain a property Tax Letter, seller must provide:

$25 fee (check to Department of Finance, VI Govt.)
Parcel Tax ID number and description (estate address)

Helpful if supplied with application:Copies of paid tax receipts for prior ten years -OR-
Copies of cancelled checks (front & back) showing amounts and dates paid
-OR-
Copies of mortgage statements showing taxes paid with amounts & dates

To obtain copies of paid property tax receipts one must provide:

Parcel Tax ID number and description (estate address)
Fee of $1.00 per year for receipt requested

NOTE: To avoid confusion and delays, it is best to mail property taxes to St. John office (see above) NOT St. Thomas (address on bill). Keep copies of all tax bills and cancelled checks (front & back) or mortgage statements with tax payment information. Best to mail payments to your Holiday Homes Realtor on St. John and they will pay it in person and mail, fax (or email) you a date stamped receipt for your records

To obtain copies of prior years tax bills (paid or not) contact:

One must provide:
Parcel Tax ID number and description (estate address)
Fee $1.00 per copy

There is a sliding scale government transfer tax (stamp tax) on residences & land at closing. Recording fees approx. $1.00/$1000 of the transaction value and attorney fees @ $150-$200+ /hr. (see "Stamp Tax" below)

Building costs can start around $300+++ per square foot for average (masonry) construction. A VI licensed architect or engineer must sign off on house plans. Building specs can be obtained from Planning and Natural Resources (DPNR) at 340-774-3320. Permits take 2-4 months for approval. 

Mail Service

General delivery free
P.O. Boxes are $20.00/year

Alternative mail service providers:

Mortgages are available through banks and lending institutions, including First Bank, Scotia Bank, and Merrill Lynch.  Most banks require the buyer to pay for title search, title insurance, property appraisal, written certificate of surveyors property, perimeter survey & bank attorney fees.  Second homebuyers can qualify for up to 70% loan to value mortgages.

MORTGAGE CALCULATOR
Click here for mortgage calculator .

Title Insurance is available and recommended. Check with your local attorney for recommendations.

The documentary stamp a/k/a transfer stamp tax is based on purchase price:

A) 2% for property valued up to $350,000
B) 2.5% for property valued from $350,001 to $1,000,000
C) 3% for property valued from $1,000,0001 to $5,000,000
D) 3.5% for property valued over $5,000,001

Note that this law also provides that: "No real property may be valued at less than the value assessed by the Tax Assessor."

INTERNET: Dial up connection can be obtained through AOL, Earthlink, ATT Worldnet, vipowernet viaccess, and others. DSL is also available via Innovative in most of Cruz Bay area and via satellite through Surf Coral Bay in Coral Bay. There are numerous Cyber Cafes" in Cruz Bay and Connections Coral Bay has free Internet access. Cellular phone service is available via Sprint, Cingular or Centennial, and there are numerous long distant service providers from which to choose.

TELEPHONE SERVICE:

Monday - Friday 8:30 am - 3:30 pm (Closed for lunch 1-2 pm)
Mrs. Yvette Powell

Electricity, Cable, Propane

Having utilities changed over from one property owner to another involves some preparation beforehand. The companies involved all have their "own way" of doing things and trying to communicate with them from "off island" can be frustrating and energy consuming if you are not well prepared. When dealing with them be sure to extend courteous greetings - "Good morning " or "Good afternoon". And remember, "patience is a virtue - island time can be forever"..

Local service providers with their requirements:

ELECTRICITY - Leona Thomas or Sherice Smith
WAPA (Water and Power Authority) Located in The Lumberyard Complex
By Mail:
P.O. Box 302636 , St. Thomas , VI 00803-2636
Monday - Friday (8:00am-4:00 pm) Closed 1-2 pm for lunch
St. John office: (340) 776-6446

CABLE and Digital TV Service

Innovative Cable TV
Located on the 2nd floor of The Marketplace (340) 693-8685
See website: www.cabletv.vi
By mail:
P.O. Box 6100
St. Thomas, VI 00801

PROPANE : Propane: cost per tank for stoves/ovens average $80 (100 lb. tank handles a small household for three months) Paradise Gas 693-8848.

Roof gutters for cistern collection and storage. Required cistern capacity: 10 gallons of cistern storage for every square foot of roof on single story home, 15 gallons for two-story home. STJ also has a desalinization plant; water cost (including delivery) is $130 - $200 for 3000 gals (more for Coral Bay Delivery). V. I. Water and Power Authority (WAPA)