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)
The tax rates as outlined in Act 6991 will be used.
The rates are:
- Unimproved non-commercial real property at .004946
- Residential real property at .003770
- Commercial real property at .007110
- Timeshare real property at .014070
Virgin Islands Property Tax Bill Facts
To obtain a property Tax Letter contact:
Department of Finance
P.O. Box 488, St. John, VI 00831
Mrs. Jacqueline Jackson
Mrs. Irma Zakers
The documentary stamp a/k/a transfer stamp tax is based on purchase price:
- 2% for property valued up to $350,000
- 2.5% for property valued from $350,001 to $1,000,000
- 3% for property valued from $1,000,0001 to $5,000,000
- 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.”
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.
Gross Receipts Tax
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.