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WITH TERRITORY’S BONDS AT JUNK STATUS, MAPP ADMINISTRATION SEEKS $430 MILLION IN NEW DEBT  

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Alana33
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September 22, 2016 11:55 am  

http://viconsortium.com/breaking-news/with-territorys-bonds-at-junk-status-mapp-administration-seeks-430-million-in-new-debt/

Which means the implementation of more taxes on locals, tourists which will impact businesses, additional taxes our marine industry, New fees on internet, etc.

No mention of payment of long overdue monies owed to WAPA, GERS in all of this, mind you.

Let's just increase our already staggering debt, at much higher interest rates due to our bond status being declared JUNK!

All while Mapp lives and travels in luxury on our dime.


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ms411
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September 22, 2016 12:38 pm  

The proposed new "Internet fees" would be on Internet purchases. Here's the line from the article.

Mr. Collens also said the administration would implement an internet gross receipt tax, which is a tax on items for those shopping online.


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Alana33
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September 22, 2016 12:43 pm  

Thanks for the clarification.


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ms411
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September 22, 2016 12:59 pm  

You're welcome. I think residents should really pay attention to this proposed tax (though I don't see how they can implement it), but other jurisdictions are also planning a similar tax.

They need to go after all these cash businesses. Wonder how much revenue that would generate?


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OldTart
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September 22, 2016 1:08 pm  

If you live in a state which imposes a sales tax and buy from a company based in that state then you're automatically charged that tax but I'm not sure how imposing a GRT on internet sales emanating from the USVI would work, let alone be productive, as I doubt there's a large enough number of internet-based sales generated from within the territory. Conversely, f I buy a $20 item online from eBay, can't see how that would work. I wonder if Mr Collens has actually done the research.


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JohnnyU
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September 22, 2016 1:12 pm  

The proposed new "Internet fees" would be on Internet purchases. Here's the line from the article.

Mr. Collens also said the administration would implement an internet gross receipt tax, which is a tax on items for those shopping online.

Now they just have to figure out how to collect it (Provided the vendor doesn't have a local presence)


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STTsailor
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September 22, 2016 1:35 pm  

GERS underfunded by $1.4-1.7 B. Yes, that B is for a billion $$$.

Meantime, I run into gebernatorial cavalcade on the waterfront the other day. Quite impressive I must say. At least 20 vehicle; limos, black SUVs, white vans, ambulances, motorcycles escort. Traffic stopped. I hailed to the chief.

I wonder if mayor of Tyler, TX (pop 97,000) travels with the same fanfare.


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ms411
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September 22, 2016 1:37 pm  

Texas has a Use Tax that is supposed to be applied to purchases made out of state (including Internet purchases). They aren't very successful in implementing.

http://www.tax-rates.org/texas/use-tax


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watruw8ing4
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September 22, 2016 1:56 pm  

It's easy to charge those internet taxes with pre-packaged software, but more of a headache to report and remit to the VI if you aren't selling through a company like eBay or Amazon. I suspect this will lead to more vendors deciding not to sell to Virgin Islanders to avoid the hassle. I'm not looking forward to more "Does Not Ship To US Protectorates" messages.


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CruzanIron
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September 22, 2016 2:12 pm  

The GROSS RECEIPTS TAX is a tax collected on the gross income (over a fixed amount) of a business that is based in and collects revenue in the US Virgin Islands.

There is no way the VI can impose this on an e-Bay or Amazon.

Federal law allows them to collect a SALES TAX, but since we don't have a sales tax, we can't force them to collect that either.


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ms411
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September 22, 2016 2:16 pm  

Texas does not require Internet sellers to collect the USE tax. It's self-reporting by tax payer. If Texas can't figure out how to collect, I'm pretty sure VI won't pioneer a workable option.


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Pdmargie
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September 22, 2016 2:31 pm  

Austerity refers to a state of frugal spending. In the financial sector austerity is used to describe the measures that governments take to reduce their budget deficits, either by raising taxes or reducing government spending.

Emphasis should be placed on REDUCING government spending.


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CruzanIron
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September 22, 2016 2:40 pm  

They're Democrats/Liberals/Progressives. They can't help themselves.

The solution is to tax more and more.


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Pdmargie
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September 22, 2016 2:54 pm  

Maybe the government should legalize marijuana. Promote pot tourism. Regulate and tax the Hell out of it and, by law, stipulate ALL revenue go directly to reducing debt. Oh, and build a giant Hedonism like resort on STX too! 😀


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CruzanIron
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September 22, 2016 3:29 pm  

Why the hell would someone pay $500 to fly here from Miami to smoke weed when they can go to Colorado?


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Pdmargie
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September 22, 2016 3:37 pm  

For the same reasons they fly here to not smoke weed or go to Colorado! 😎


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watruw8ing4
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September 22, 2016 5:01 pm  

The GROSS RECEIPTS TAX is a tax collected on the gross income (over a fixed amount) of a business that is based in and collects revenue in the US Virgin Islands.

There is no way the VI can impose this on an e-Bay or Amazon.

Federal law allows them to collect a SALES TAX, but since we don't have a sales tax, we can't force them to collect that either.

Yep. Sorry, I read that wrong.


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East Ender
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September 22, 2016 5:57 pm  

I loved the $35,000,000 for Sports, Parks and Recreation including "National Hot Rod Association Tracks" (we need more than one?). Not a penny for long-term care (mental health or regular health) facilities.


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CruzanIron
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September 22, 2016 6:07 pm  

Not one mention of cutting costs.

Not one mention of raising revenue that does not impact the residents pocket books.


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Alana33
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September 22, 2016 6:33 pm  

No mention of paying already outstanding debts.


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CruzanIron
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September 22, 2016 6:44 pm  

No mention of paying already outstanding debts.

Agreed, unless you consider the debt to the GERS a debt. And the contribution amount looks to be less than the yearly payout, and certainly no where near the amount to keep the system solvent.

But what does Mapp care? That won't be his problem.


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OldTart
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September 22, 2016 6:48 pm  

St Johnians - is there really the need for an expenditure of $32,000,000 on an elementary/middle school on St John?


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Alana33
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September 22, 2016 7:00 pm  

St. John needs an elementary/high school.
Kids have to take the ferry, e very day, back and forth, when they reach high school, which is subsidized by our tax dollars, to get to school in STT unless they can afford going to Gift Hill School.

Wonder who gets the contract/kickback for $32M which in my mind is an outrageous amount of money.


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tedc
 tedc
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September 22, 2016 7:08 pm  

OT,

No, there's no need. DOE has already closed Guy Benjamin School. If they're truly worried about little kids' safety in Cruz Bay, the smart thing would be to re-establish GBS as K through 5th or 6th, and then utilize Sprauve School for all the upper grades through 12th.

That solution would eliminate the long commute issues for STJ high schoolers who currently have to go to STT, at a tiny tiny fraction the cost of designing and building an entirely new facility.

Those line items are vote-buying statements only, and only attractive to those who won't be paying for it, and/or will benefit from the project - the land-selling family, the politically-tied architects, the contractors who know kickbacks are a part of the game.


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OldTart
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September 22, 2016 7:18 pm  

Thanks, tedc. I asked because STJ has such a small population. I don't know what percentage comprises school-age children but rather assumed it isn't a staggering number and I thought I remembered a school closing there. Just seems a massive expense but your estimation makes sense as does the infinitely less expensive alternative you suggested.

PS: Just read an article from 2014 about the closing of GB which was widely criticized at the time. The Education Commissioner at the time cited "declining enrollment" as one reason for its closure and also said the difficulty in hiring teachers was another reason. But a $30+ million new school will erase those problems? Is a baby boom anticipated on the island?


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