An Act amending title 33 Virgin Islands Code, subtitle 2, chapter 89, subchapter I, section 2494 requiring the Lieutenant Governor to offset a property owner’s property tax liability against any amount of money that the Government of the Virgin Islands owes to the property owner

2025-2026 Regular Session

authorize offsetting a property owner’s property tax against any government debt owed to that owner, reducing taxes by the government arrears.

Introduced

Overview

Bill 36-0008 proposes an amendment to title 33, Virgin Islands Code, subtitle 2, chapter 89, subchapter I, section 2494. The core change would require the Lieutenant Governor to offset a property owner’s property tax liability against any amount of money that the Government of the Virgin Islands owes to that property owner. In short, if the government owes a property owner money, that debt would be netted against the owner’s current or future property tax obligations.

Bill number: 36-0008

Title of bill: An Act amending title 33 Virgin Islands Code, subtitle 2, chapter 89, subchapter I, section 2494

Purpose: To authorize an offset mechanism where property tax liability can be reduced by amounts the government owes to the property owner

Official implementing entity: Lieutenant Governor

Introduced: January 13, 2025

Current status: Introduced; bill actions show progression through the legislative process

Purpose and Intent

Create a streamlined setoff process to satisfy government debts to property owners by reducing property tax obligations first.

Provide a mechanism for overlapping government obligations and tax receipts to be settled more efficiently.

Align debt settlements with tax administration to potentially improve cash flow for property owners and reduce delinquency risk.

Key Provisions (as described)

Amend current law at Section 2494 to authorize property tax offsets.

Require the Lieutenant Governor to apply a property owner's tax liability against any government debt owed to that owner.

The offset acts as a netting mechanism, reducing the amount due for property taxes in proportion to government arrears to the owner.

The measure specifies the official who administers the offset (Lieutenant Governor).

Affected Parties

Property owners: Potentially benefit from reduced property tax bills when the government owes them money.

Government of the Virgin Islands: May experience delayed or reduced cash receipts from property tax payments due to offsetting against government debts.

Tax administration / Lieutenant Governor’s office: Will manage the offset process, verify owed amounts, and administer the offset against property tax liabilities.

Procedural and Timeline Aspects

January 13, 2025: Bill introduced (received).

January 15, 2025: Assigned (likely to a committee or chapter of the legislature).

January 16, 2025: Sent to Senate (to be considered by Senate committees or full chamber).

February 27, 2025: Legislative action recorded as “Introduced” (indicating a further advancement or formal introduction in a subsequent session step).

Potential fiscal and administrative impact

Could improve efficiency in settling government debts to private property owners.

May reduce immediate tax collections from property tax receipts if offsets are applied early.

Requires Administrative rules for determining offsets, priority of offsets, timing, and dispute resolution.

Implications for property tax budgeting and cash flow management for both property owners and the government.

Next steps and considerations

Await committee hearings to review specifics on: method of calculation, timing of offsets, disclosure to property owners, and any limitations or caps on offsets.

Clarification on interaction with existing tax collection and debt-settlement processes.

Assessment of potential effects on municipal revenues and debt collection practices.

Bill