VI Source: Senate passes hotel tax increase

Seal_of_the_United_States_Virgin_IslandsUnited States Virgin Islands Hotel room tax is expected to go from the current 10 percent to 12.5 percent according to a bill recently approved in a committee hearing. Proceeds (estimated at some 5.8M) are slated to assist with the promotion of local agriculture, sports programming and sports tourism.

The bill came at the request of Gov. Kenneth Mapp and was sponsored by Senate President Neville James. In testimony before the senate reported on Sept. 16 (VI Source),  Tourism Commissioner Beverly Nicholson-Doty indicated of the 12.5%: “The increase is not especially onerous and, in many cases, it is less than the current hotel and resort fees already imposed on the traveler,” but that she would not advise going beyond that amount.

Hotel Room Tax was last raised in 2010 from 8 to 10 percent, becoming effecting in 2011. It is anticipated that there will be no impediment to this legislation becoming law; no word on when it is expected to take effect.




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