In a move to encourage private sector investment, Gov. Charles Turnbull has sent to the Senate a bill to re-establish the Virgin Islands Tax Study Commission.
Turnbull said in his letter to Senate President Vargrave Richards this week that he was well aware that the V.I. tax code has not been reformed or changed since the early 1980s.
"As the need for private sector led economic growth has become essential . . . an extensive review of current tax laws is needed to promote internal and external private sector investment," he wrote.
The Tax Study Commission would assess all tax categories and offer suggestions for tax reform, as was recommended by the Five-Year Economic Recovery Task Force. Funding for the $150,000 initiative is included in the miscellaneous section of the Fiscal Year 2001 budget, Turnbull said.
The Five-Year Operating and Strategic Financial Plan strongly recommends tax reform as the basis of public-private sector growth. Louis Willis, Internal Revenue Bureau acting director, has said more than $100 million in delinquent taxes is owed the V.I. government.
The commission would comprise seven members appointed by the governor. They include the Office of Management and Budget director, Finance commissioner, IRB director, a labor union representative and representatives from both territory Chambers of Commerce. Members would receive no more than $50 per diem, except for transportation expenses.
The first report from the commission would be due no later than Sept. 30, 2001. The term of the commission is scheduled expire on Sept. 30, 2002.
Turnbull also sent the Legislature a revised Internal Revenue Matching Fund budget for FY 2001. It states that the proposed $14.2 million appropriation is a contribution to the General Fund, and not to the Union Arbitration Award and Government Employees Increment Fund.
