Illegal personal use tax axed
At a time when the citizens of this crippling economy are experiencing major cash flow problems, our senators, in addition to raising their own salaries (remember Act No. 6905), continue to support unmerited and unwarranted legislation that continue to raise the cost of living here in the Virgin Islands. In July 2003 the legislature passed a law that cost the Virgin Islands tax payers three million dollars annually for those who imported goods worth more than $1,000 and imposed a tax of 4 percent of its value. It is fair to say that it was gross negligence on the behalf of the Twenty-fifth Legislature for supporting a distressed piece of legislation to help bail out the government out of its financial crisis, with payless paydays looming and a $152.4 million deficit projected for the end of that fiscal year. This tax was enacted by the Twenty-fifth Legislature and signed into law by then Gov. Charles Wesley Turnbull.
Nonetheless, a startling and precedential decision was made by visiting District Court Judge Harvey Bartle, III to declare the personal use tax illegal. Judge Bartle ruled that the personal use tax levied by the V.I. government on Robert Molloy for importing his vehicles was unconstitutional. In addition, “The tax favors local businesses by sparing their merchandise sold within the territory and interferes with the free flow of goods across territorial boundaries,” he wrote. “The Legislature of the Virgin Islands, in enacting this tax, was engaging in prohibited economic protectionism,” which is unjust.
I think all residents of the U.S. Virgin Islands should commend this young native of St. Croix, Mr. Robert Molloy for the stance that he took against the Virgin Islands government. The government should not have the authority to impose any taxes on the people of the Virgin Islands as they see fit. Instead of taxing the residents of this wonderful territory, the executive and legislative branch of government should be looking for ways to decrease the cost of living and cutting expenses instead of passing on the burden of mismanagement and inefficiency on to the residents.
Although, the decision to stop the government from collecting the illegal personal use tax will deliver a significant blow to the government coffers, it will save the average citizen thousands of dollars by not paying a tax on purchasing an item from another state. Hopefully, the legislator will not take this opportunity to come up with another taxing scheme to make up for lost revenues. Disappointingly, in a recent Daily News article, Sen. Terrence Nelson appears to be more concerned with the loss of revenues that this decision will have on the government’s budget. Shouldn’t he be more relieved that some of his constituents no longer have to pay an illegal tax out of their already dwindling pockets?
Once again I’ll like to take this opportunity to thank Mr. Molloy for the courageous act by challenging the V.I. government and for axing the personal use tax.
