New STJ villa tax  

Page 3 / 14

Docasch
Posts: 23
(@Docasch)
Advanced Member
Joined: 3 years ago

Please help me understand why there's a proposed fourfold suggested increase on renting Villas in St. John. We nearly purchased a vacation home and we're still in the market, but this is discouraging .
1. Who does the increase in tax base benefit? I read in the Wall Street Journal that it's going primarily to pensions. Is that true or are there serious infrastructure issues?
2. Would double the efforts to collect back taxes on Rental's answer the same question?
3. Who will be the most affected by this tax increase? So far this year there's been an increase in sin taxed on alcohol, an increase in timeshare taxes and now a proposed increase of taxes on anyone not living in the vacation villa 180 days a year or more. Isn't this trend going to push St. John towards being a large resort all inclusive experience? That may not be the goal, but it could be the result. I think these changes will lead to more villa sales at lower prices. The profit margins on a vacation home are very narrow. Once it's obvious that many of the homes won't. Many won't be able to sell, but the island will still need a larger tax base could invite in larger resorts and all-inclusive's. That's not the island that I know and love.

65 Replies
Donnasculpts
Posts: 44
(@Donnasculpts)
Advanced Member
Joined: 5 years ago

Good news... apparently in response to massive outcry, social media, and phone calls/letters to both senators and Ms. Nicholson-Doty, the Bill has been pulled.

Reply
vicanuck
Posts: 2376
(@vicanuck)
Trusted Member
Joined: 9 years ago

It also alerts the VI IRB to local homeowners that may be not reporting the rental income from AIR B+B.

AirBNB does NOT provide any identifying information to the IRB on individuals who offer short term rentals in the territory nor anywhere else they do business.

It would be suicide for them to sell out their partners (the homeowners) and incredibly detrimental to their business.

Who told you that?

Reply
Exit Zero
Posts: 2290
Registered
(@exit-zero)
Trusted Member
Joined: 11 years ago

It also alerts the VI IRB to local homeowners that may be not reporting the rental income from AIR B+B.

AirBNB does NOT provide any identifying information to the IRB on individuals who offer short term rentals in the territory nor anywhere else they do business.

It would be suicide for them to sell out their partners (the homeowners) and incredibly detrimental to their business.

Who told you that?

When I said 'IT' also alerts' I really meant that as the hotel tax receipts start to come in from AAirBNB the IRB may realize how much income the rentals are generating --- NOT that AirBNB is identifying them - my statement was too vague in that respect and I made a mistake in wording it that way.

Reply
Alana33
Posts: 12155
(@Alana33)
Expert
Joined: 7 years ago

I just received an email from STBOR (STT Board of Realtors.
I am sharing the information contained within.

PROPOSED NEW PROPERTY TAX CLASSIFICATION
A newly elected senator, Marvin Blyden, is proposing the creation of a property tax classification known as Villa Real Property.

The classification includes residential property that is rented, leased or otherwise hired out for a period of time that does not exceed 180 days. In other words – short term rentals. The proposed tax rate on “villa real property” is .014170 - quadruple the current residential property tax rate, and double the commercial rate (paid by hotels).

Keep in mind, rentals are already subject to Gross Receipts tax. VITAR estimates, based on MLS statistics, that approximately 50% of properties in the territory would be effected by this new tax and not just the “Peterborg” villas. Plenty of working class folks who rent their apartments short term would be crushed by this.

This new tax creates a chilling effect for buyers, a sell-off mentality for owners, and it ripples throughout the economy’s service industries.

VITAR is planning to enter testimony into the record at the July 7th hearing on this proposal on STX.

Reply
STTsailor
Posts: 524
(@STTsailor)
Trusted Member
Joined: 4 years ago

Good news... apparently in response to massive outcry, social media, and phone calls/letters to both senators and Ms. Nicholson-Doty, the Bill has been pulled.

Can someone post reference for "good news"
Thanks

Reply
Page 3 / 14
Settlers Handbook

Thinking about moving to the Virgin Islands?

The Settler's Handbook is a Indispensable Guide

The current 18th Edition, will help you explore your dream of island living. A solid reference book, it was first published in 1975. That's 40 years of helping people move to the Virgin Islands.

Order Today $17.95
Close Menu
  
Working

Please Login or Register