gross receipt taxes...
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gross receipt taxes on rentals?

Posts: 100
Estimable Member
Topic starter

do you have to pay the gross receipt tax of 4% on rental income? in addition to the hotel tax of 8% for rentals of less than 90 days?

Posted : August 26, 2008 5:21 pm
Posts: 2045
Noble Member

how many rentals do you have? If you run a hotel, timeshare or B & B you definitely have to pay gross reciepts tax.

Posted : August 26, 2008 5:48 pm
Posts: 100
Estimable Member
Topic starter

i think the rule is anything over 5000 per month, which i normally wouldn't get, unless someone paid all at once.

Posted : August 26, 2008 7:30 pm
Posts: 3919
Famed Member

This sounds like too serious an issue to trust to us! I suggest you call someone at the IRB who can give you a definitive answer, or at least where to look it up.

Posted : August 26, 2008 9:01 pm
Posts: 3111
Famed Member

It gets a little complicated. Currently, if you make $150,000, or less per year, you are exempt on the first $5000 per month. Those numbers are in the process of changing. There was a bill passed (in favor of the landlord) just a couple of weeks ago. I don't remember the website address, but if you just google : Gross receipts tax, Virgin Islands, you will find the info. The new $ amounts may not have been updated on the website yet, but I think it's $9,000 per month.

The part that's complicated is, if you only make $150,000 per year, but say you make $80,000 of that in one month, you still only get the $5000 exemption for that month, so you pay 4% on $75,000. Every month is individual. The government website explains it pretty well.

Posted : August 27, 2008 4:42 am
Posts: 956
Prominent Member

I believe the new amounts are anyone making less than $225,000 per year gets a $9000/month exemption instead of the old $150,000/5000 exemption. It still has to be signed by the govenor per the Avis on Sunday/Monday.

I wouldn't imagine you'd count personal income against that $5000 allowance though, you don't pay gross receipts on income. Any indication that I should imagine this?


Posted : August 27, 2008 2:09 pm
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