12.5% Hotel Sales Tax

I would have to guess that the tax increase is applicable when the cash passes over the counter.

The tax increase will take effect Jan. 16, according to Marvin Pickering, director of the Virgin Islands Bureau of Internal Revenue.

Read more at: http://www.caribbeannewsdigital.com:8080/en/noticia/us-virgin-islands-raising-hotel-taxes

This is an excerpt from the Dept of Tourism press release:

Please note the new tax rate is applicable to all occupied accommodations, beginning on the night of January 1, 2016. Occupants will be subject to the new tax rate, regardless of when they arrived or when the booking was made starting on January 1, 2016.
Questions concerning the hotel room tax should be directed to the Office of Chief Counsel (VIBIR) at (340) 715-1040, ext. 2249.

Typical of VI to announce 2 different dates.
It would make more sense to have Jan. 1 as the start date.

Here is a copy paste from The Commissioner of the Department of Tourism. I asked her about it and she sent me a .pdf of the release. Goes into affect for all reservations occurring on January 1, 2016, regardless of when the trip was booked or paid for.

Dear Partners:
Please be advised that effective January 1, 2016, the U.S. Virgin Islands Hotel Room Tax will increase from 10 percent to 12.5 percent for accommodations occupied for less than 90 days, including, but not limited to, hotels, resorts, guest houses, inns, villas, campgrounds and timeshare developments.
The hotel room tax is 12.5 percent of the gross room rental, which includes the gross room rate plus any additional charges, such as energy surcharges and maintenance fees.
Based on the increase, the Government of the U.S. Virgin Islands expects to generate an additional $5.8 million in revenue annually to bolster the sustainable development of our Territory.
While we are always mindful of not overtaxing our visitors and making our destination less competitive, the 2.5 percent increase is not especially onerous.
Even with the increase, the USVI will not be at the highest end of the room tax spectrum and our destination does not have the departure taxes many independent nations and territories in the region levy.
Please note the new tax rate is applicable to all occupied accommodations, beginning on the night of January 1, 2016. Occupants will be subject to the new tax rate, regardless of when they arrived or when the booking was made starting on January 1, 2016.
Questions concerning the hotel room tax should be directed to the Office of Chief Counsel (VIBIR) at (340) 715-1040, ext. 2249.
Thank you for working with us to ensure that in today’s competitive environment, the Department of Tourism has sufficient resources to keep our destination in the forefront of the minds of today’s discerning traveler.
Sincerely,
Beverly Nicholson-Doty Commissioner of Tourism