Personal use tax
As it should have done, the Federal court has ruled the personal use tax unconstitutional.
I am sure the local govt will appeal....and lose that too, so get ready for them to try to raise something else....When they have to repay all these people they may see that getting squeezed is very hard on a tight budget....Heres a link to the article in todays source...
I heard that as of last Friday the government was not imposing the tax on vehicles coming in, but the government may also file an appeal of the ruling and in the process try to get a stay on its implementation.
Besides stopping the propspective collections, it looks like those who paid in the past are entitled to a refund as per the ruling, so maybe the gov't will come up with a refund process rather than forcing people to sue (though I understand that the same attorney who argued the suit may be filing a class action on behalf of those who paid.)
Linda - I think that for many people, saying "they" refers to actions taken by government officials that is seriously contrary to the beliefs of the person talking. Many Americans feel disenfranchised to some degree. Yes, we elect officials, but those officials don't often represent us quite the way we'd like. Also in the case of the USVI, "they" can refer to the elected officials who are more interested in lining their own pockets than in serving the public good. That is not part of "we the people". There are an elite few who will ever be in those positions of power in government. Referring to them as "they" pretty clearly indicates that the person talking doesn't see any chance of ever being one of them or in influencing them greatly.
Boy, I'd love to see an end to the gross receipts tax! I was told by a manager at the BIR to file my tax return as always but pay whatever the bottom line came to in the USVI. so I did. Then I got a notice saying I owed gross receipts tax. So I paid it, too. Ouch. Then I got a notice saying that I wasn't supposed to file my tax return as instructed after all but was supposed to send the tax to the IRS and that self-employment tax doesn't get paid to the BIR. They didn't give back what I had paid, of course, and still expected that I'd pay the tax again to the IRS. What a mess. It takes forever to clean up messed up tax returns that were filed according to instructions directly out of the BIR office.
For Realtors and many other self-employed people, the gross receipts tax came as a very unpleasant shock. We don't pay the same amount of tax as we have before for the same income. Now we pay another huge tax on top of that. Even with paying sales tax in Washington State I paid a lower percent in total taxes than I do in the USVI. Just an illustration that governments tend to find a way to collect the taxes they wish by creating whatever tax they think they can get away with.
You want gross receipts tax, come to Los Angeles City. Ever wonder why most of the entertainment companies and post production companies hang around Burbank or Glendale. Yeah, the gross receipts tax of LA City. I love buying from suppliers in LA CIty who I know also pay the tax. Then when I sell the product forward to a client I have to pay it.
It's about $1.10 per thousand of gross sales, so not that intrusive, but just another of those annoying govenment taxes.
promo: Here if you are importing items for resale, they get gross receipts from BOTH the wholeseller and the retailer. Also, as Alexandra pointed out, if you are self-employed, you have to pay income tax and file gross receipts. There is an exemption for the first $5000/month, but if you are successful, it is a double taxation.
I shipped a vehicle to STT in 2005 and was charged $572 (4% Personal Use Tax). Can anyone direct me to the USVI govt department where I can inquire about getting my refund? .Has anyone else called yet to find out the process? What was their answer? ....yes, I know the USVI is thinking about appealing the decision so that might be the answer. If the amount was less than $100, I'd probably let it go (too much pain and aggravation). But, for $572, I'm willing to go the distance. Thanks for your help!
FL Barrier islander, I think Jim Dandy means that in addition to your situation, everyone else who purchased a new care while that 4% personal use tax was levied may also wish to seek a refund, since those people also paid 4%-- it was added to the purchase price of the new vehicle.