Personal use tax

I just called the USVI Tax Assessor Phone (340) 776-8505 and was transferred to extension 4310. Got a voice greeting and left a message. And........so it begins.

I don't think it effects new cars if purchased here in the territory, because the court decision has to do with interstate commerce and restricting import of goods from state to state, the ruling stated that the the tax unfairly advantaged local products and businesses, over those from the rest of the United States. In other words, if they tax me on bringing in a car.....I may decide to only consider local dealers for my purchase..........would like to personally thank the nice gentleman who filed the suit to open peoples eyes to the issue though....

Ok...Promo/East Ender et al...

So when I move to STX and decide to have software shipped here from my replicator, do I pay a gross receipts tax on that? I'm not 'buying' it from a wholesaler. I'm having it made up for resale.

And when I repackage and ship back up to customers in the states, I pay a tax on that?

Explain it to me S L O W L Y please. 🙂

Hello all,

We are shipping a used Ford Ranger down as I write omn Tropical. Should be here later this week. Do we have to pay personal tax on this 1999 vehicle since the law was overturned? Anyone know?

Thanks!

You should not have to pay personal use tax (4%) but you definitely should make a copy of the newspaper articles and keep them in your pocket. Though.......we call the place where they keep your car until you jump through all the hoops "Customs Prison". And, they don't have Judge Leon Kendall interceding on your behalf in this situation. (ok., that comment will probably get pulled but I couldn't resist 🙂

The personal use tax was just that, for personal use items, so that specific tax was not charged to or paid by businesses, (for example, car dealers). They (commercial businesses) did and still do pay both excise and when applicable customs, and gross receipts, so their tax bite can be as much as 14%, naturally factored afterward into the retail price of goods.
The personal use tax was theorized to level the playing field for VI businesses, by making those residents who chose to buy off island (usually at lower price) pay something extra, and possibly discourage them from doing so. Of course, the reality was the gov't needed money, and it was just another income stream for the black hole otherwise known as the general fund.
I don't think the tax assesssor's office is the place to question this, as they only deal with real property taxes. IRB was the collection agent.

FL Barrier Islander,

Please keep us posted on your efforts to reclaim the personal use tax you paid on your vehicle. I know many people who have been ripped off by this particular scam and would like to get their money back.

Thanks for the tip, will let everyone know how far we get on NOT paying it. Yes, I understand the SEVEN STEP is ours to follow.

Right. Tax Assessors office is NOT the correct place......I kinda knew that but wanted to call a phone number where a real person actually answers the phone. So, yes, the Tax Assessor's office transferred me to a different number....which went directly into voicemail (I have a stateside number so I do not expect a call back but I left a VM anyway). Then, I called another number........and was transferred to a different number (totally different number) and got voicemail and left a message. I've now sent an email to a Mr. Julio Rhymer. I'm chasing $572.00 so I'm determined. I will try calling more telephone numbers today. I'm using the web site http://www.ltg.gov.vi/ for my quest.

O.k.! I got to talk to someone today. 340-774-5865 and the extension is 2249. This is the IRB who is the govt entity who collect the tax. The lady said that
(1) the Dept. of Justice is appealing the ruling
(2) the refund/reimbursement of the Personal Use Tax $ is only for the person who sued and won the case
(3) They would not reimburse anyone else
(4) If I want, I can get a copy of the ruling from the District Court

Hmmmm..........I very nicely said that I didn't understand. If (even upon appeal) the tax is found to be illegal, then I would think that all persons who paid the tax (which was illegal) would get a refund. She said no. Only the person who sued and won. So, then I said.........ok, so you're saying that to get my refund, I need to sue. And she said, "No. That's not what I'm saying." And, then she told me to go to the District Court to get a copy of the ruling.

What do you think should be my next step? I'm thinking I will have to wait until the appeal. However, do you think if I get a copy of the ruling from District Court, and send a letter with the supporting documentation that at least it would be good to have my request for reimbursement on file? .........I know........this IS the usvi. I'm just asking.....Comments?

Also, as a former bureaucrat, I can tell you that this ruling is so new, no one you can reach on the phone is high enough up the food chaine to be able to tell you anything definitive. They are probably in a holding pattern, waiting to see what happens.

VI gov't isn't going to give the $$$ back w/o a fight. It will cost them less to appeal than pay back--I've paid several thousands for this tax, and can't be alone in that...so we're talking big money here, in the cumulative amount. It would be interesting,, however, if someone went to small claims court and sued for their funds.....Only other suggestion would be to call Jeff Moorehead's office (he was the victorious atty) and see what plans, if any, he has to pursue it for a group.

FL Barrier Islander

You can find a copy of the Judge's Ruling at www.vid.uscourts.gov. Look on that website and it should have a place to select recent opinions. Hope that helps.

C Urchin 😀

Thanks for ALL the feedback! I'm "standing down" until the result from the USVI appeal is released.

I wonder if it will have to go through some type of class action lawsuit?

I seem to remember somebody telling me (20 years ago) that there was law on books you couldn't sue vi government! lol

It's very difficult to sue most governments. Not impossible, but difficult and expensive.

Just an update. I did not have to pay the personal use tax. I was kind of prepared to have to fight to not pay it but it was not a problem. So it is in effect or at least is until further notice.

Morna, thanks for the follow-up!

Any other updates on this? Is this the same as the "road tax"? When I shipped my car last year, I had to pay Highway User's road tax of $414.24 and excise tax of $361.20.

I would love to hear of anyone who has received a refund and the procedure.

Thanks.
Jen

Jen,
The Tax is not being charged to anyone since the ruling. The USVI Gov is appealing the court decision. The only person who received a refund was the original plaintiff in the case. So you just have to see what happens on the appeal.