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36-0063

An Act amending title 33, Virgin Islands Code subtitle 1, chapter 3, sections 41, 42(a), and 43(a) and (c) to clarify that gross receipts taxes must be paid by all contractors doing business in the Virgin Islands regardless of physical location

2025-2026 Regular Session

Requires all contractors doing business in the Virgin Islands to pay gross receipts tax, regardless of their physical location, clarifying tax nexus.

Sent to Lt. Governor
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WeVote Research Nonpartisan
Bill Summary · 36-0063

Summary of Bill 36-0063

Overview

  • Bill Number: 36-0063
  • Title: An Act amending title 33, Virgin Islands Code subtitle 1, chapter 3, sections 41, 42(a), and 43(a) and (c) to clarify that gross receipts taxes must be paid by all contractors doing business in the Virgin Islands regardless of physical location
  • Classification: Bill
  • Status: Sent to the Lt. Governor
  • Introduced: February 13, 2025

Purpose and Intent

The bill is designed to remove ambiguity around who owes the Virgin Islands gross receipts tax (GRT) by explicitly stating that contractors doing business in the Virgin Islands are liable for GRT regardless of where the contractor’s physical location or operations are based. By clarifying nexus rules within the VI Code, the measure aims to standardize tax obligations for contracting activities conducted in the Virgin Islands.

Key Provisions (amendments)

The bill would amend:
- Title 33, Virgin Islands Code, Subtitle 1, Chapter 3
- Sections 41, 42(a), and 43(a) and (c)

Core effect:
- Explicitly require payment of gross receipts taxes by all contractors who conduct business in the Virgin Islands, independent of the contractor’s physical location.

Note: The exact statutory language is not provided here, but the summary reflects the stated aim: to ensure GRT liability is not limited by where a contractor is physically located.

Who Is Affected

  • Contractors doing business in the Virgin Islands, including entities whose operations are located outside the VI but that perform work, provide services, or otherwise engage in business within the Virgin Islands.
  • Potentially includes prime contractors, subcontractors, and independent contractors involved in VI-based projects.

Procedural and Timeline Aspects

  • Introduced: February 13, 2025
  • To Senate: March 25, 2025
  • Sent to Governor: June 6, 2025
  • Governor’s Action: Approved June 13, 2025
  • Sent to Lt. Governor: June 26, 2025

Potential Impacts and Considerations

  • Compliance: Contractors contracting in VI may need to review and potentially adjust how they report and remit GRT, especially if they previously argued that physical location mitigated liability.
  • Enforcement: The VI Department of Licensing and Taxation (or relevant tax authority) would enforce GRT collection and remittance among contractors with activities in VI.
  • Nexus Clarification: Provides clearer criteria for when a contractor is subject to VI GRT, reducing ambiguity for cross-border or remote contracting arrangements.
  • Administrative Changes: May require updates to filing processes, contractor registrations, and potential audits for contractors doing business in VI.

If you’d like, I can adapt this summary to emphasize a particular stakeholder group (e.g., small businesses, out-of-state contractors) or compare it to existing VI GRT provisions.

Compiled from official sources — confirm details with the bill’s official record.

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