Personal Tax
Noticed a few post about the personal tax... so I am reposting an old message with info.
I called the Excise Tax office and asked some questions concerning the Personal Tax.
I asked whether it was imposed on all shipments (business and personal)
ANS - NO the tax is Personal - it is charged only to individuals. Businesses already have their own taxes to pay separate from this Personal Tax.
Is it imposed only on items brought in via barge?
Ans -No its imposed on all items brought in for personal use.
How would you collect taxes on items shipped through the postal service? Is there a new form that goes with packages and will the post office collect on your behalf similar to customs fees?
Ans - No the recipiant has an obligation to come in to our office and say they received items by mail that are taxable and pay the tax.
How do you determine the tax? If I were to order an expensive item and had it mailed to me and I ordered from another company 20 items each less then $1000 but invoice totally more then $1000 - what would be taxable?
Ans - You are taxed per invoice not per item. So if an invoice for one item is $999 - there is no tax. If an invoice for 40 items is $1500 you are taxed on the invoice regardless of if the items within the package are all nominally priced.
What about people shipping all their household items that they already owned, things like coffee makers, rugs, cloths ect - that are all likely less then $100 but all together could be several thousand in value?
Ans - for people shipping large quanities of items you must have a packing list, with the packing list an estimated value for each item and a total for all packed items - the tax will be imposed on the total of the packing list for the container of items shipped not an each item.
Hope that helps.
--Islander
Thanks for the info. I condensed all my stuff to 4 boxes. I checked with UPS because my company uses them. They only have express shipping available which is about 3-5 days ship time. The cost for a 30 pound box was $318.00. Not what I would call a great bargain for shipping some clothes and an old computer system. Post Office here I come. I'm glad that you posted the information about the personal tax. After the sticker shock of $3000.00 to ship my car, this made the move a little more liveable. Its weird that Puerto Rico is not much more to ship to than the states in the continental US. I am getting the feeling that the VI is a really distant cousin to the US.
Hello Steve N.
I believe UPS considers the USVI international thus the rates are going to be pricey even for a small package. Best bet is the USPS, a 30 pound box may be around $45 priority mail (4-5 days).
--Islander
Thanks for reposting this, Islander. Our movers are coming in four days and this issue has been on my mind quite a bit -- especially how to value items and document them so little question is raised about their value.
I asked a few folks about this new tax on our premove visit, and most everyone reported exactly what you wrote above. However, two people had one slightly different explanation of what items were subject to tax. They said that it wasn't all goods that were shipped for personal use -- the tax would only apply to items that were less than one year old and shipped in for personal use.
Has anyone else heard that version on the new personal use tax? Would love it if its true, but that would seem to require a lot more paperwork and haggling -- after all, now you'd have to record both the estimated replacement value AND the age of every item you ship.
Islander, is calling the department of taxation and revenue the best way to get a clear and correct answer? Might they have a web site where this type of info is posted?
Thanks again for the volumes of info you've rounded up for us, Islander and crew. I've never felt better prepared for a big move, and it's all thank to you guys.
HipCrip
Steve N. wrote:
I am getting the feeling that the VI is a really distant cousin to the US.
HA, HA! 🙂 Like third cousin twice removed!!
Hello Hip-Crip,
You are welcome. I haven't heard the age requirement on the items rule... seems like a great loop hole though it does in fact exist.
A phone call is the best way to get the answers. I don't know of a web site for IRB with their personal tax explained.
--Islander
Hello Steve
I'm curious - Who quoted you $3000 to ship your car?
There are better ways - like dealing directly with Crowley Shipping or Tropical. I've brought 4 cars here by driving each one to the Crowley dock in Jacksonville, Fl. - for shipment to STT.
The most expensive cost was a Mazda MPV van, which cost around $1300 to ship. The least expensive - a Suzuki Sidekick - cost $900.
If you live on the US west coast, $3000 may be a fair price!
I just want everyone to know that you can save a lot by dealing directly with the shipper.
The same goes for anyone that has received a $15,000 to $20,000 quote for moving their household goods to STT from the mainland. The actual cost for shipping a 40 foot container is around $4100.
---TBoyd
www.harmonysuite.com
TBoyd,
Your pricing giuidleines makes me feel like I did okay. The movers, who will be here in TWO HOURS to pack up and move our household goods (YAY!) are charging us about $5500 - that's $3k for the door to door move in a 20' container with all customs documentation and $2500 to pack up our entire house. We're moving our 1992 Saturn for around $1600 -- again, door to STX dock.
Be wary of some of the quotes you get. The first place I called quoted me $12k for the household goods move and tried to convince me I needed a 40' container even though we are taking no furniture. Start getting quotes far enough in advance so you can shop around for the best deal -- because most national movers have to get info from their local contacts, it can take 7-10 days for them to pull all the info together.
HC
You need to look at the entire cost of bringing a vehicle from Florida to the USVI not just the freight.
In addition to the shipping you have to add on the personal property tax, road tax, registration fees and if it isn't a US made car the duties.
In toal including ocean freight it is going to cost between $2,000 - $3,000 to bring a car from the mainland to the VI.
Jim
HipCrip:
That's a great deal on moving! You did your homework & that should be a good gauge for others planning to move here.
Shippers & movers will try to take advantage of most people's lack of knowledge about actual shipping costs from the mainland to USVI.
TBoyd
TBOYD,
Here is the price break down for my move and what I am budgetting for.
I used Managed Freight for the shipping of my car.
$800 Tropical shipping.
$50 I have heard that I will have to pay a fee for the Export Power of Attorney at Tropical to handle the paperwork.
$463.84 Vehicle road tax. 2899 lbs X $.16
$882.60 Personal use tax $22065(Blue book) X 4%
$150.00 Licensing/registeration/title (DMV)
$240.00 Registration Fee
$80.00 Customs brokerage
$160.00 Managed Freight handling Fee
---------------------------------------------------------------------
$2826.44
Now there is a reality check for people looking to make a spur of the moment move. The company is picking up a chunk of this so not as bad as it looks. Now this just gets the car there. For insurance I have been quoted $1400-1500 per year full coverage. $350 for basic coverage.
The car is nice but come on.
Now I am looking to spend around $1000 per month for rent so first/last/security is looking to be around $3000.00.
I am shipping clothes only so a couple of hundred for shipping costs. Then I will have to repurchase all of the necessities once I get there so with a furnished place I figure another $1000.
Flight cost from Miami - $500
Hotel for a week - $1000
Rent a car for a week - $300
Sooooooo- I figure week one St. Thomas. $10,000.
My stuff I condensed down to four boxes and shipped via Post Office. Coming from Key West the total was $120.00 for about 120 lbs.
Not to be harsh but sometimes there are too many generalities on this board when it comes to money especially when dealing with dreamers with only a wish for a tropical environment but with reality very little money. I travel a lot for work (many exotic destinations) and to South America for vacations, I am very careful relaying my experiences with people who are interested in following my path. Giving general unknowledged advise might seem harmless until you find out someone actually followed your advise and gotten into trouble. For those such as myself who are actually making the move, those that put down exacting information (with all pluses and minuses) have been invaluable. An example is that in the reports dated back to Jan 1, I think I have only read three posts that listed specifically what the all inclusive costs for shipping a car were. Even less have given information on what exactly they paid all inclusive. Realistically, its like selling a car, but not telling the buyer that the tires and the steering wheel are extra. Honesty sometimes hurts, but it will prevent disaster in the future.
I leave on June 1st so will be posting my findings.
Islander:
I would have to support what Steve N said.
Often to much speculation and not enough hard research on the message board. You are a diligent researcher, but you can't do it all.
Given the empirical information that Steve N has provided it needs to be preserved somewhere for easy reference on what it cost to bring a car to the VI. To often the stock answer for how much it costs to move a car to the VI is $800 when this is only the tip of the ice berg.
Jim
Thanks Jim for the suggestion.
Steve N., we have a What to Expect Section on this site, can I put your information there and would you be interested in writing up your thoughts once you have moved and lived on island for a few weeks or months for me to include.
You can view the stories at https://www.vimovingcenter.com/what_to_expect/
they are personal accounts and thoughts.
Thanks.
--Islander
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