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HR 366

Walston, Joy; receiving the 2025 Yellow Rose Nikki T. Randall Servant Leadership Award; commend

2025-2026 Regular Session Introduced by Kimberly Alexander and 4 co-sponsors

HR 366 allows the Virgin Islands to keep taxes on locally produced fuel sold to the U.S., boosting its treasury and funding for local programs and infrastructure.

House Read and Adopted
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WeVote Research Nonpartisan
Bill Summary · HR 366

Summary of HR 366

Bill Number: HR 366
Title: To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.
Status: Introduced in House
Introduced Date: January 13, 2025
Classification: Bill

Purpose and Intent

The primary purpose of HR 366 is to amend the Internal Revenue Code of 1986 to ensure that taxes collected on fuel produced in the Virgin Islands and subsequently imported into the United States are directed into the treasury of the Virgin Islands. This legislative change aims to enhance the financial resources available to the Virgin Islands government by allowing it to retain tax revenue generated from local fuel production.

Key Provisions

  1. Amendment to Section 7652:

    • A new subsection (j) is added to Section 7652 of the Internal Revenue Code.
    • This subsection mandates that all taxes collected under Section 4081(a) on fuel produced in the Virgin Islands and entered into the United States must be deposited into the treasury of the Virgin Islands.

  2. Effective Date:

    • The provisions of this amendment will apply to fuel entered into the United States after December 31, 2024.

Impact

  • Financial Impact on the Virgin Islands:

    • By allowing the Virgin Islands to retain tax revenue from fuel production, the bill is expected to provide a significant financial boost to the territory. This could enhance funding for local programs and infrastructure.

  • Affected Entities:

    • The bill primarily affects the government of the Virgin Islands, which will benefit from increased tax revenue.
    • Fuel producers in the Virgin Islands will also be impacted, as the tax structure for their products will change.

Legislative Process

  • Committee Referral:

    • Upon introduction, HR 366 was referred to the House Committee on Ways and Means for further consideration.

  • Timeline:

    • The bill was introduced on January 13, 2025, and is currently in the early stages of the legislative process.

Conclusion

HR 366 represents a targeted effort to support the financial autonomy of the Virgin Islands by ensuring that tax revenues from local fuel production are retained within the territory. As the bill progresses through the legislative process, it will be important to monitor discussions and potential amendments that may arise during committee review.

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

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