(a) Every individual and every firm, corporation and other association doing business in the Virgin Islands, except those specially taxed, exempted or excluded shall pay an excise tax on all articles, goods, merchandise or commodities manufactured in or brought into the Virgin Islands for personal use, use in a business, for disposition or sale in the course of trade or business, for processing or manufacturing or for any other business use or purpose, based on the volume or value of any such articles, goods, merchandise, or commodities, as determined according to the provisions of subsections (b) and (c) of this section, according to the following schedule, except on each shipment for which the excise tax is less than five ($5.00) dollars or, for personal use items, the value of the articles, goods, merchandise and commodities is less than five hundred dollars ($500.00); provided further, that upon application to the Director of the Bureau of Internal Revenue, accompanied by the proof herein required, the amount of the excise tax paid on the value of goods which have been destroyed pursuant to order by the manufacturer thereof, or the Department of Health, or any other authorized local or Federal department or agency, by reason of contamination, spoilage or other reason rendering such goods unfit for use or consumption, shall be refunded. The proof of destruction herein required shall be deemed satisfied by submission to the Director of the Bureau of Internal Revenue of (1) the invoice, or photo copy thereof, on the goods showing the nature and quantity of goods and the date such goods were received, (2) the written order, or photo copy thereof, requiring such destruction, and (3) a “certificate of destruction” attesting to the fact that the goods have actually been destroyed, which certificate shall be signed by the Commissioner of Health or his authorized designee as witness to such act of destruction. The Director of the Bureau of Internal Revenue may promulgate such rules and regulations as are necessary to the proper administration and enforcement of this provision.
| I (A) Beers of foreign manufacturers of 24.12 ounce containers, or the equivalent | $6.08 |
| (2) Beers manufactured in the United States of 24.12 ounce containers, or the equivalent | $5.00 |
| (3) Beers of foreign manufacturers, per reusable keg of 1382.4 ounces, or the equivalent | $23.50 or $.017 per ounce |
| (4) Beers manufactured in the United States, per reusable keg of 1328.4 ounces, or the equivalent | $17.32 or $.01252 per ounce |
| (5) Carbonated drinks in reusable canisters | 4% |
| (6) Self-propelled vehicles (excluding motor vehicles requiring licensing for highway use) and apparatuses (excluding airplanes), boats, firearms, ammunition and bicycles | 10% |
| (7) All boats, including launches, with or without auxiliary engines or outboard engines | 3% |
| (8) Marine engines (excluding outboard motors) | 3% |
| II. (1) Cigarettes | $11.00 per carton |
| (2) Cigars and tobacco other than cigarettes | 25% |
| III. Pneumatic tires, inner tubes and solid tires for motor vehicles | 5% |
| IV. Clocks, watches, silverware, jewelry, cameras, projectors, all leather goods (excluding shoes), perfumes, and outboard motors | 3% |
| V. Clothing, drugs, medicines | 2% |
| VI. All other articles, goods, merchandise, and commodities other than those listed as exempt under subsection (e) of this section | 4% |
| VII. (A) Carbonated drinks | 3% |
| plus $0.36 per case of 24–12 ounce containers, or the equivalent; | |
| (B) plus $1.44 per case of 24 unit-12 ounce containers or the equivalent added to the value of subparagraph (A), for the Virgin Islands Revenue Enhancement and Economic Recovery Act. | |
| VIII. Spirits, Cruzan Rum and Tafia, Diageo Brands, Irish and Scotch Whiskies, Whiskies other than Scotch Whiskies, including Bourbon and Rye, Liqueurs and Cordials, vodka, tequila, vermouth and other wine and fresh grape beverages flavored with plants or aromatic substances, Acquavit, Bitters, Brandy and Cognac, Gin and Geneve, Kirschwasser and Ratafia, Wines, Rums, Scotch, and similar items commonly known as or referred to as distilled spirits | $6.00 per nine-liter case or equivalent |
(b) For the purposes of this chapter, the value of the articles, goods, merchandise and commodities for any business use or purpose shall be the cost price at which the articles, goods, merchandise or commodities are purchased by or consigned to the taxpayer plus a mark-up of five percent. However, if the articles, goods, merchandise or commodities are sold or consigned at less than fair market price, their value shall be the price at which similar articles, goods, merchandise or commodities are purchased by or consigned in the ordinary course of trade or business plus a mark-up of five percent.
(c) Where an article is sold more than once in the course of trade or business, its value shall be included in the excise tax calculation, under this section, of the manufacturer, importer, or other first seller in the Virgin Islands.
(d) For purposes of this section, the lease, or rental, or sale determined to be a lease, to any importer or manufacturer of any articles, goods, merchandise or commodities for any business use or purpose shall be considered a sale to the importer or manufacturer and the tax shall be based on the price at which similar articles, goods, merchandise or commodities are purchased by or consigned to importers or manufacturers in the ordinary course of the trade or business, plus five percent; or where such price cannot be determined, then the fair market value of the articles, goods, merchandise or commodities, as at the date it is imported into or manufactured in the Virgin Islands plus five percent, shall be considered to be the price. However, if items of equipment are imported into the Virgin Islands to be used for a period of 180 days or less, either under a lease, rental, or any other type of agreement, or by the owner thereof, the value of such equipment upon which the excise tax will be computed is the actual rental charged for such leased or rented property or, in the case of such temporary importation by the owner of the equipment, then the fair rental value of the equipment as of the date of such importation, shall be the basis for the computation of the excise tax thereon. The importer of such equipment shall attach a copy of the rental agreement to the excise tax return required to be filed by said importer. The owner of equipment which is temporarily imported will attach to the excise tax return required to be filed by him satisfactory evidence of the fair rental value of the same or similar equipment. Upon exportation of the equipment temporarily imported into the Virgin Islands, the importer will furnish a copy of the approved export declaration to the Bureau of Internal Revenue as evidence of the date of such exportation. Equipment originally imported to remain no longer than 180 days in the Virgin Islands, but which remains for a longer period, will be treated as other than a lease or rental for 180 days or less and excise taxes thereon will be recomputed on the basis as provided in the first sentence of this subsection.
(e) The following are exempt from excise taxes under this section:
(1) Educational materials which means:
(A) permanently bound books consisting wholly of reading matter and containing no advertising matter except incidental announcements of books and the publisher's own advertising;
(B) printed music whether bound or in sheets; and
(C) newspapers, magazines, and periodicals of general circulation;
(2) Foodstuffs which means all nutritive matter intended for consumption for purposes of the growth, repair, or maintenance of vital processes (including noncarbonated drinking water) but expressly excluding such items as:
(A) confectionery;
(B) chewing gum;
(C) carbonated drinks;
(D) soda water;
(E) soft drinks and other beverages; and
(F) all other matters not consumed primarily for nutritive purposes;
(3) Coal, fuel oil, and liquid gas whether for domestic consumption, bunkering, or other purposes;
(4) Molasses used for the production of rum and for agricultural purposes;
(5) Animal feed, poultry feeds, and commercial fertilizers;
(6) Motor vehicles requiring licensing for highway use;
(7)
(A) Articles, goods, merchandise, and commodities for sale to the Government of United States, the Government of the Virgin Islands, or an instrumentality of either Government other than those brought in by or for sale to a contractor of either Government in connection with a public work project or undertaking;
(B) Medications, medical equipment, medical devices, medical supplies, and all other goods brought into the Territory for medical care by the Governor Juan F. Luis Hospital and Medical Center and the Roy Lester Schneider Hospital and Community Health Center.
(8) Articles, goods, merchandise, and commodities disposed of in the course of export trade by importers and Virgin Island manufacturers to purchasers who take delivery and actual possession outside of the Virgin Islands; and
(9) Paper, plastic, glass, or wooden materials and supplies used to package foodstuffs grown, processed, bottled or produced in the Virgin Islands.
(10) [Deleted.]
(11) Perfumes & Toilet Waters & Bath Salts. Perfumes & toilet waters & bath salts include: essential oils; mixtures of odoriferous substances; perfumes and other toilet waters; beauty or makeup preparations and preparations for the care of skin, other than medicaments, including for, example, sunscreen or suntan preparations and powders, rouge; perfumed bath salts and other bath preparations, after-shave preparations.
| 33011100–33049950 | |
| 33073010–33073050 |
(12) Tapestry, hand-woven fabrics & handmade carpets
| 50071030–50079060 | |
| 57011000–57029920 | |
| 51111120–51123020 | |
| 58050010–58050040 |
(13) Sweaters, shawls, scarves & ties
| 611090–61171010 | |
| 61171010–61178010 | |
| 62141010–62159000 |
(f) The specified portions of excise taxes on goods in the following categories under subsection (a) are designated advance disposal fees under title 19, V.I.C. §§ 1552(b) and 1553(i)(1), for the antilitter and beautification programs of the Waste Management Authority and must be deposited into the Antilitter and Beautification Fund established under section 3079 of this title within 15 days after their receipt by the Bureau of Internal Revenue.
(1) Under item I-Beers of foreign manufacturer, per case of 24-12 ounce containers or the equivalent...$0.58 per case;
(2) Under item I-Beers manufactured in the United States, per case of 24-12 ounce containers or the equivalent.....$0.58 per case;
(3) Under item VI-all other articles, goods, merchandise and commodities other than those listed as exempt under the subsection (e) of this section....$1.2% of value; and
(4) Under item VII-Carbonated drinks, per case of 24-12 ounce containers or equivalent..............................................$0.43 per case.
| Description of Categories Designated as Advance Disposal Fees | Current Fees | Fee Increase FY 2016 | Fee Increase FY 2017 | Fee Increase FY 2018 | Fee Increase FY 2019 | Fee Increase FY 2020 |
| Under Item I-Beers of foreign manufacture, per case of 24-12 ounce containers or the equivalent | $.48 per case | $.58 per case | $.68 per case | $.78 per case | $.88 per case | $.98 per case |
| Under Item I-Beers manufacture in the United States, per case of 24-12 ounce containers or the equivalent | $.48 per case | $.58 per case | $.68 per case | $.78 per case | $.88 per case | $.98 per case |
| Under Item VI-all other articles, goods, merchandise and commodities other than those listed as exempt under subsection (e) of this section | 1% of Value | 1.2 % of Value | 1.4% of Value | 1.6% of Value | 1.8% of Value | 2% of Value |
| Under Item VII-Carbonated drinks, per case of 24-12 ounce containers or equivalent | $.36 per case | $.43 per case | $.50 per case | $.57 per case | $.64 per case | $.72 per case |
(g) Any person, individual, firm corporation and other association receiving an exemption from excise taxes under the provisions of this section shall establish and maintain an employee pension benefit plan and an employee welfare benefits plan, as provided under the Employee Retirement Income Security Act, 29, U.S.C. 1001 et seq.
(h) Any person, individual, firm, corporation or other association receiving an exemption from excise taxes under the provisions of this section shall establish and maintain a Donated Leave Program similar to the program established under title 3, chapter 25, section 583b, Virgin Islands Code.