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THE VIRGO



Cooperative Extension Service



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Extension Bulletin No. 2



February 1980



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LEARNING ABOUT OUR



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VIRGIN ISLANDS



TAX SYSTEM



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Cooperative Extension Service - Darshan S. Padda, Director - St. Croix, U.S. Virgin Istands



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TABLE OF CONTENTS



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Our Systemor Taxation: An Overview 2.5... oe ce inn een weer ee 2

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Franchise. Fax-ond License Hees oir soit we cies 6 os bse ele So baleen 6

Heapnnet Ta asco eae ick ee ee 8 se ee es we ewe mes 7

Federal Excise Tax on Vike ProeinCts ig cir rte eaten inne 86 6h 8 ce eee ses 8

EGAN EROS Vaiss ob ms cal era eel cae eee ot as oa Stace bce S Sijasae ern owe 9

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Hotel Room Taxis occ cone ee ee ee eae a i ae aware se eben 11

Pagiiltecii id 8: Qgke oe eee 7 OU ki ea encece aaa 11

Highway Weer eT ay 555 cn rr es eyeing ined Sas eek eee ee 12

Real Preperty Woe sco = se eels ED ere ek os seine ex 13

Gift.and [iilertatice Tax... |< sc . eee oe ee a erences 6 6 Se ese bw es 14

Stamp Tax. 2.085. Seiden) ee a ee eer eee ete ss 9 «95 u ie oe 14

Workmen’s Compensation: <5. 5 2 i.0. sa des Swe ie ples OO ee oes se eee Fs 15

Unemployment Insuranee 30.0. 20.5. .2 k S2 Eee ae ee es ee 8s Cae 15

Tax Exemptions and Swheidies ... . .6.osse cheek et ee a ee es cee 16

Other Booklets and Pactsheets:... . ...:. 55° 5. wissen < sees wis ae eee 18 9 pee 16



Prepared & edited by: Kwame (Juan) Garcia, Program Leader

Community Resource Development

Cooperative Extension Service

College of the Virgin Islands



Artwork by: Jymmy Dunn

FOREWORD

The Cooperative Extension Service continues to serve as an informal educa-

tional agency with a mission of helping Virgin Islanders improve the quality of

life. Within the few years since its beginning in 1972, when the college received

land-grant status by the United States Congress, the Cooperative Extension

Service has continually expanded its services in the field of Agriculture and



Natural Resources, Home Economics, 4-H Youth Development and Com-

munity Resources Development.



With this bulletin which provides information on Virgin Islands taxes

affecting not only those in the agri-business industry but also the members of

our community as a whole, we hope to meet the changing needs of Virgin

Islanders through a more diversified Community Resources Development

Program.



The Cooperative Extension Service aptly demonstrates how the USDA, the

land-grant college and the community can jointly work towards improving the

quality of life for the people. I encourage all Virgin Islanders to utilize the

educational opportunities offered by the Cooperative Extension Service of the

College of the Virgin Islands.



Darshan S. Padda, Director

Cooperative Extension Service



INTRODUCTION



K.G.



Our system of taxation is a very important part of our government. Revenues derived from

taxes provide such services as law enforcement, education, fire protection, public housing and

health care. Tax monies also assist the poor, train the handicapped and help preserve the

environment.



Since, in one way or another, everyone is ultimately affected by taxes, it is important that

there be a clear understanding of the system of taxation here in the territory. This bulletin is

therefore intended to provide a preliminary exposure to those who are interested in learning

more about our Virgin Islands tax system.



1

V. 0772

OUR SYSTEM OF TAXATION

AN OVERVIEW



DIRECT AND INDIRECT TAXES



Taxes can be classified by whether they are directly or indirectly paid. Direct taxes are

paid to the government with the knowledge and intent of the payer. An example of direct

taxes are the individual income taxes. With this form of taxation, the burden of payment lies

directly upon the individual.



The gross receipt taxes are examples of indirect taxes. Gross receipts taxes are levied on

business concerns. However, the businesses may well pass these taxes on to the consumers in

the form of higher prices. Thus, the burden of an indirect tax may not be borne by the enter-

prise on which the taxes are levied.



PROPORTIONAL, PROGRESSIVE and REGRESSIVE TAXES



A tax may also be classified by the rate or percentage of taxation in relation to the amount

of the income.



The tax is proportional if the rate of taxation remains constant as the income base increases.

The social security tax is proportional, but only up to a certain wage (income) limit. An

employee is currently required to pay a social security tax of 6.13% on all income up to

$25,900. This tax is, therefore, proportional up to that income level.



A tax is progressive if the rate of taxation increases as the income base increases. Individual

income taxes are examples of progressive taxes. In 1978, a single person with one exemption

whose income was $5,000 would have paid a tax of $283 at a tax rate of 5.66%. If that person

had an income of $10,000, his tax liability would have been $1,227, for a tax rate of 12.27%.

At income of $15,000, the tax would have been $2,472 for a rate of 16.48%. Clearly, an

increase in income goes hand-in-hand with rising (progressive) income tax payments.



A tax may be considered regressive if the rate of payment decreaSes in proportion to the

amount of income increase. The key concept-is the rate of percentage of tax payment to

income and not the actual amount of tax paid. Let’s look at the Virgin Islands property

tax which is currently levied at a flat rate of 1.25% of the assessed property value. Even though

this tax is legally proportional, it may be considered regressive when compared with rising

family income instead of with the value of the property itself. Because a rise in family income

will not automatically increase the assessed value of the family home, the property tax there-

fore, tends to extract a larger proportion of income from lower income families than from

families in middle and upper income brackets.



PRINCIPLES OF TAXATION



Students of taxation have long debated the issue of what constitutes an effective tax system.



Among the basic principles of taxation generally agreed upon are that the tax must be:

— Easily understood

— Just and fair

— Easily administered

— Levied at an appropriate time, when the people are able to pay;

_— And that the government must be able to decrease this tax in good times

— And be able to increase the tax in emergencies.



A system of taxation can also contribute to economic stabilization. According to some

economists, during a depression there should be a reduction in taxes but not in government

expenditures. This allows more money to remain in the economy and thus creates additional

economic activities. During inflationary times, taxes, but not government expenditures, should

be increased. This will serve to withdraw money from the economy. Thus, taxation is one of

the instruments for regulating our economy.



Institutions such as churches, schools, hospitals, and even civic and community organizations

are exempted from taxation for social reasons. On the other hand, government generally levies

a heavy tax on cigarettes and alcoholic beverages. Similarly, luxury items tend to be taxed at a

higher rate than necessities.

SOCIAL SECURITY TAX



The Federal Insurance Contribution Act (FICA) provides for a national program which

insures against loss of earnings because of age, death, or prolonged disability. The tax required

under this program is referred to as the FICA tax, or the Social Security Tax and is applicable

to the United States Virgin Islands.



Under this program, each employer is required to deduct a Social Security Tax from em-

ployees’ wages. The employer is also required to deduct from his business revenues an amount

equal to the total amount deducted from his employees’ wages. The tax rate is currently 6.13%

but will increase in the years ahead (see table below). The maximum employee’s wage from

which the tax is deducted in 1979 is $22,900, but this wage limit will also increase in the years

ahead. Thus, a person earning $60,000 annually pays social security tax equal to that of some-

one earning $22,900.



For those who are self-employed, the Social

Security Tax rates are higher than the rates for

regular wage earners. However, self-employed persons

do not have a matching requirement. For the tax

year 1979, the self-employed person is required to

pay a social security tax of 8.1% on wages up to a

maximum of $22,900.



In addition to monthly benefits in retirement,

Social Security also provides disability and survivor’s

insurance that protects the employees and their

dependents throughout the working years. Social

Security deductions also pay for Medicare hospital

insurance for people 65 and older and for those who

have been getting disability checks for two years or

more.



J



The table below shows the tax rate for 1980 through 1984 and the wage base for 1980 and

1981. Starting with 1982, the earnings base will rise automatically according to increases in

average wage levels.



Employers and

x Y rd in employees each If self-employed On earnings

will pay you will pay up to

CorPoRATION

1980 6.13% 8.1% $25,900

1981 6.65% 9.3% $29,700

1982 6.70% 9.35% .

1983 6.70% 9.35% :

1984 6.70% 9.35% *



*Wage base will increase according

to average wage level increases.



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Social Security TAX

OFFICER

INDIVIDUAL INCOME TAX



In the Virgin Islands we have a public administration system which we call the Territorial

government. Residents of the Virgin Islands pay income taxes to this single government

structure. However, we are required to use the Federal income tax laws and regulations to

compute our Territorial tax obligations. This means that the Federal income tax tables and

such Federal tax forms as the 1040 and 1040A are used when filing the Territorial income tax.

This also means that April 15th is the deadline for filing your tax on income earned during the

preceding year. Changes in the Federal tax laws may affect us in the U.S. Virgin Islands. The

relationship between the Federal and Territorial tax systems is sometimes referred to as the

“mirror theory” of taxation.



The amount of tax an individual pays depends on the size of his income. The tax rates



usually increase as the income gets larger. Booklets listing the various tax rates are issued by

the local Department of Finance or U.S. Internal Revenue services.



eS



CORPORATE INCOME TAX



Many businesses in our community are formed by using a particular structure called a

corporation. A corporation is a legal entity operated by a charter called the articles of incor-

poration. The profits of the corporation are taxed separately from the earnings of its owners.

It is the corporation and not the owners that are liable for its taxes. Corporations do not use

the individual income tax tables to compute their tax liabilities; instead a special set of rules

is used for computing corporate tax.



Corporations and other businesses located in the Virgin Islands pay taxes only to the Terr:-

torial government. As in the case of personal income tax, Federal tax rules are also used in

computing the amount of taxes a corporation must pay the Territory. These rules sometimes

change as a result of legislation by the U.S. Congress. For the year 1979, a corporation basically

computes its income tax liability as follows: :



— It must pay a tax of 17% on the

first $25,000 of profit it achieves.



—It must pay a tax of 20% on

the second $25,000 of profit it

achieves.



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— It must pay a tax of 30% on the

third $25,000 of profit it achieves.



—It must pay a tax of 40% on

the fourth $25,000 of profit it

achieves.



- It must pay a tax of 46% on all

profit exceeding $100,000. I T

PROPRIETORSHIP AND PARTNERSHIP INCOME TAX



Business firms which are not corporations are usually organized as proprietorships or some-

times partnerships. A proprietorship is a business legally owned by a single individual for his or

her own benefit. The proprietorship is the simplest form of business organization. The business

liabilities, including income taxes, are the personal liabilities of the owner. The proprietorship

terminates when the owner dies.



A partnership is a business legally owned by two or more persons. The partners are expected

to share in the profit or loss of the partnership and are responsible for the payment of all

taxes.



The profits earned using a proprietorship and partnership form of business are personal

income of the owners. The individual income tax rules are therefore used for computing the

tax required on the income gained from either of these forms of enterprise.



PROPRIETORSHIP



PARTNERSHIP

FRANCHISE TAX AND LICENSE FEES



Every legally established corporation or foreign corporation doing business in the territory



is required to pay a frarichise tax of $1.50 for each thousand dollars of capital stock. However,



the minimum franchise tax is $100.00.



This franchise tax gives the corporation the right to conduct business in the territory, the



right to exclusive use of its name, and to file court cases.



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crafts, are required to purchase only business licenses in ord



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territory. On the other hand, a corporation must purchase a business license, and also pay a



franchise tax.

IMPORT TAX



The Danish Law — No. 64, 1914



The United States Virgin Islands were purchased from Denmark in 1917. The then Danish

colonial government, including its system of taxation, was gradually transferred to our present

territorial government. Among the Danish legal structures that have remained in effect until

today is the Danish import tax law of 1914.



This law requires that ad valorem customs duties be levied on certain foreign goods which

are imported into the Virgin Islands. This levy is not applied on goods made in the United

States. Some of the foreign items taxable by this law include the following: automobile,

clothing, furniture, and jewelry. The customs tax rate is 6% of the value of the foreign item

being imported. However, the federal government has recently granted permission to the

territorial government to reduce this 6% rate for particular items. This customs tax applies

even when the foreign goods come from the United States mainland.



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The United States Customs office is the entity that actually collects the money required

by this tax. This money is then transferred to the territorial government.



Some foreign items which are excluded from the ad valorem tax are books, periodicals,

fresh fruits, vegetables, fish, live turtles, gold and silver ingots, earth, clay, stone, mules and

asses, manure, rum and molasses.

FEDERAL EXCISE TAXES ON V.1. PRODUCTS



The Revised Organic act of 1954 is the federal law which currently serves as the Virgin

Islands Constitution. This Act requires that Federal excise taxes collected on Virgin Islands

products should be returned to the territory.



Currently Virgin Islands rum is the major local product which is shipped to the United

States mainland*. An excise tax is levied on this rum when it enters the mainland ports. The

tax revenues collected on the rum are returned to the territory. Generally all revenues received

from excise taxes on Virgin Islands products shipped to the mainland are referred to as the

Internal Revenue Matching Funds or sometimes as the rum excise tax funds. However, other

V.I. products, such as costume jewelry, also contribute a small amount of federal excise tax

revenues to the territory.



According to the Revised Organic Act of 1954, the excise tax revenues returned to the

territorial government are based upon certain stipulations:

a) The United States government will return to the

Territorial government tax revenues collected equal

to the amount of revenue collected within the territory.



b) The United States government will return to the

territorial government tax revenues collected which are

larger than those collected by the territorial govern-

ment, provided that these funds are for “emergency

purposes and essential public projects”.



c) Additional tax revenues collected during the fiscal year

shall remain in the Treasury of the United States as

miscellaneous receipts.



The approval of the President of the United States or his designated representative is re-

quired before internal revenue excise taxes returned to the territory can be obligated or

expanded.



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*The V.I. and the U.S. Department of Treasury at the time of this printing are in litigation to determine whether petroleum

fuel refined locally and shipped to the mainland should be considered a V.I. product.

LOCAL EXCISE TAX



We have seen that certain goods entering the United States Virgin Islands from foreign

countries are subject to a 6% custom levy. There is also another import tax called the local

excise tax.



This excise tax is levied on certain goods entering the United States Virgin Islands for

business use or resale. The point of origin of the goods will not affect the excise tax rate.

Goods produced in any part of the United States other than the Virgin Islands can be subject

to the excise tax. Foreign goods, unless exempted, are subject to this excise tax in addition to

the 6% ad valorem custom duties.



The excise tax is levied only on the first seller or on the persons importing the goods. The

tax may be a specific fee on a select item. For example, liquor is taxed $3.00 per case or $1.25

per wine gallon, whichever is greater; or the tax may be a percentage of the cost, such as 10%

on bicycles, 5% on tires and 3% on jewelry. When the percentage method is used, the cost is

determined to be the net invoice value plus a markup of 5%. This tax should be filed on a

monthly basis.



Among the items commonly excluded from excise taxes are educational materials, food-

stuffs, livestock feed, and motor vehicles which pay the Highway User’s Tax.

GROSS RECEIPTS TAX



Every firm or individual engaged in a business in the Virgin Islands is required to pay a

gross receipts tax of two percent (2%) whenever the gross income exceeds a certain limit.

In addition, service enterprises such as lawyers, doctors and accountants must also pay this

gross receipts tax. This tax is based upon the gross sales and is computed on a monthly basis.

For example, if a business had sales of $4,000 during the month, then a gross receipts tax of

$80 is due. If in any month, the gross sales are less than $1,000, then no gross receipts tax is

due during that month. However, the gross receipts tax return must be filed, even if the

monthly sales are less than $1,000. As a result of importers, manufacturers, wholesalers and

retailers being required to pay the gross receipts tax, most goods are taxed at several stages

in our distribution system.



Farmers, fishermen, taxi drivers, bus companies, costume jewelry manufacturers, and banks

are among those exempted from this tax. The commission earned on sales of Virgin Islands

lottery tickets is also exempted.



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A tax of 5% of the gross receipts are levied

i) on all performances or entertainment. This

\ 5% tax serves as the gross receipts tax for

/ those functions.



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normally levied includes the following: horse

races, boxing matches, motion pictures,

cockfights, and circuses. However, if these

were held by a recognized religious, civic, or

other community organization and were not

held for business or profit-making purposes,



then the tax would not apply.



10

HOTEL ROOM TAX



A tax of 5% of the rental cost is levied on all guests of a hotel in the territory. The term

“hotel” includes apartment hotels, guest houses, condominiums, boarding houses, residential

clubs, and private clubs. If the hotel has less than three rooms then this tax does not apply.



The Hotelkeeper is required to collect this 5% room tax from the guest and hold it in trust

for the government of the Virgin Islands. The Hotelkeeper is also required to file the room tax

form and pay the appropriate fee with the government on a monthly basis.



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PRODUCTION TAX



A production tax is a specific fee levied on some

measurable proportion of goods manufactured or

processed in the Virgin Islands. For example, a tax of

one cent (I¢) per yard is levied on woolen yard goods

manufactured or processed in the Virgin Islands. This

penny per yard tax applies whenever the amount of

woolen material produced does not exceed a production

limit called a “quota”. Woolen material produced in

excess of this limit or quota is levied a tax of 65¢ per

yard.



The quota is determined by the Virgin Islands govern-

ment and helps to provide for an acceptable commercial

relationship between the levels of Virgin Islands and

mainland productions. The initial tax of one cent

per yard within the quota serves as a control device that

monitors the amount of woolen yardages produced in

the Virgin Islands. This is because producers are re-

quired to pay a tax on even low levels of production. On

the other hand, the tax of 65¢ per yard beyond the

quota will very likely render it not profitable to con-

tinue excess production.

HIGHWAY USER’S TAX ( Road Tax )



A tax is levied whenever a vehicle is brought into the Virgin Islands. This tax is based upon

the weight of the vehicle. The rate is 11¢ per pound, with a minimum tax of $25.00.



Taxicabs and franchised buses are among those exempted from this tax. A vehicle may also

be exempted from taxation if it was owned by a resident for two or more years before being

imported.



Fuel Taxes



A tax of 8¢ per gallon is levied on gasoline

or diesel fuel sold in the Virgin Islands.



This tax does not apply if the fuel was sold

for use in aircraft, motorboats, or any motor

vehicle. not built for operation upon the TA

public highways. Cooking gas as well as fuel XK

for industrial purposes are also exempted

from this tax.



12

REAL PROPERTY TAX



A tax of 1.25% is levied on the value of buildings and land areas in the Virgin Islands.

This tax is levied on only 60% of the assessed value of the property. For an example, let us

assume that the government’s tax appraiser assesses a building to be valued at $100,000.

The property tax due will be $750.00 or 1.25% of $60,000 ($100,000 x .60).



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EXEMPTIONS



Homeowners



Homeowners who use their properties as living quarters may be granted an exemption of

up to $5,000 of the assessed value of the property. In the above example, if the owners used

the building as a home, then the tax will be levied on only $55,000 of the value of the buil-

ding. The tax due will now be $687.50.



Veterans



If the homeowner is a veteran, the exemption goes to a maximum of $10,000 of the asses-

sed valuation. Using the same example, the rate would apply only on $50,000 of the assessed

value. Therefore, the tax would be $625.00. If the veteran has military service-connected

disability, which is considered to be a 100% disability, his home will be totally exempted from

property tax. In the event of the veteran’s death, these benefits may be continued until the

spouse remarries or dies.



Farmland



If the real property is being used for agricultural or horticultural purposes, then the total

land areas, including structures related to farming, such as barns, may receive an exemption of

95% of the assessed value of the property.

GIFT AND INHERITANCE TAX



The transfer of property by gift or inheritance is taxed at a rate ranging from 5% to 15%

depending upon the nature of lineal relationship of the partners in the transaction. The first

$3,000 of a gift is exempted from taxation. In the case of inheritance, the exemptions vary

from $5,000 to $50,000. The taxes are as follows:



Allowable Allowable



Deduction Deduction

(a) On gifts or inheritances Tax on Gift on Inheritance



from husband to wife,



from wife to husband,



from parents to children



and grandchildren, and



from children to parents 5% $3,000 $50,000

(b) On gifts or inheritances



from brothers and sisters,



to brothers and sisters,



from aunts and uncles



to nieces or nephews 10% $3,000 $30,000

(c) On gifts or inheritance



to all others not listed above. 15% $3,000 $ 5,000



However, there is no tax levied on gifts to recognized religious, charitable, scientific, literary

or educational organizations.



a)



STAMP TAX



Certain real or personal properties such as buildings or

land require a deed for their transferral. A tax of one percent

(1%) is imposed on the value of such properties.



Certified copies of District Court documents are also levied

a stamp tax. A tax of 40¢ is imposed on each judgment,

order, or other document issued by the District Court of the

Virgin Islands.



An additional fee may be charged for the cost of photo-

copying or notarizing documents. The funds collected go into

the territorial treasury.



- 14

WORKMEN’S COMPENSATION



To provide for financial assistance in the

event of employment-related accidents, Virgin

Islands’ employers are required to subscribe

to the Virgin Islands Workmen’s Compensa-

tion Insurance.



This insurance is required of all employers

except churches, employers of domestic help,

and certain non-profit organizations. However,

these employers may voluntarily participate

in the Workmen’s Compensation Insurance

Program.



The insurance rates are based upon the

type of business, the degree of risk, and the

wage levels. Payments are usually made

annually or semi-annually.



UNEMPLOYMENT INSURANCE



Virgin Islands employers are currently required to pay an unemployment insurance fee of

4.4% on the first $6,000 of wages paid to each employee. This fee serves as an insurance

premium to assist those who become unemployed.



The first 3.7% of this insurance fee goes

toward the territorial unemployment insur-

ance fund. The remaining .7% is paid to the

Internal Revenue Service under the Federal

Unemployment Tax Act (FUTA). A good

experience rating or a low employee turnover

rate may lower the unemployment fee for an

employer.



Employers are required to pay this unem-

ployment insurance tax whenever the employ-

ee’s wages exceed $500 during any quarter.



15

TAX EXEMPTIONS AND SUBSIDIES



Virgin Island Businesses may apply for exemptions from local taxes or, in the case of

federal taxes, for a refund on that part of the taxes remitted to the territorial treasury.



The government has a special program called “The Industrial Development Commission

(IDC)” which handles requests for tax exemption on businesses. The IDC is organized to pro-

vide the economic inducements that might attract those industries to the Virgin Islands which

contribute to the economic and social development of its people. The IDC may grant a firm

up to 100% tax exemption from real property, gross receipts, and certain excise taxes. In

addition, the IDC may grant up to 90% refund in customs duties and corporate income taxes.

These exemptions or subsidies may be granted for a period as long as 20 years. Refunds are

also granted to individual shareholders for taxes they pay on dividends from these tax exempt

corporations.



The legislature, as the law-making body of government, can also grant tax exemptions.



KHER EREKEAKK KK KK FF



OTHER BOOKLETS



. Grain Sorghum and Forage: Production and Utilization Potential in St. Croix, U.S. Virgin Islands



. Fruits and Vegetables: Production and Consumption Potentials and Marketing Problems in the

US. Virgin Islands



. Profitability of Beef Production in St. Croix, US. Virgin Islands



. Profitability of Dairy Farming in St. Croix, US. Virgin Islands



. Profitability of Poultry Production in the US. Virgin Islands



. Profitability of Hog Production in the US. Virgin Islands



. Potential Returns from Goat and Sheep Enterprises in the U.S. Virgin Islands



. Marketing Potential for Livestock Products in the US. Virgin Islands

9. Virgin Islands Forestry Research — A Problem Analysis



10. Prospects for Growing Grapes in the US. Virgin Islands



11. Okra: A Beloved Virgin (Farmers Bulletin 1)



12. Sorghum in the Virgin Islands (Farmers Bulletin 2)



13. Native Recipes



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On nu Ww



FACTSHEETS



1. Vegetable Planting and Harvest Guide 12. Propagation of Fruit and Ornamental Plants

2. Seeding Vegetable Crops By Cutting

3. Growing Vegetable Slips 13. Propagation of Fruit and Ornamental Plants

4. Transplanting Vegetable Crops - By Layering Seine é saad

5. Mulch For Your Garden ; ov Dts of Fruit and Ornamental Plants

6. How To Prepers Your awn Compost 15. Propagation of Fruit and Ornamental Plants

7. Staking and Training Tomato Plants By Budding

8. Controlling Tomato Insects and Diseases 16. Fertilizing Your Garden For Optimum Yields

9. Non-Disease Tomato Disorders 17. How Many Teaspoons is 5 Pounds Per Acre?

10. Growing Spinach In The Virgin Islands 18. Organic Gardening: Soil Fertility

11. Controlling Nematodes In The Vegetable 19. Organic Gardening: Pest Control

SRorerees 20. A Simple Home Drip Irrigation System



These booklets are available free of charge by writing to the Extension Editor, College of the Virgin Islands,

P.O. Box “L’’, Kingshill, St. Croix, U.S. Virgin Islands 00850. (Please request Factsheets by number.)



16

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-- ACKNOWLEDGMENT -



The compilation of the material in this booklet could have been extremely

time-consuming if it were not for the valuable assistance given me by the staff

and my colleagues of the Cooperative Extension Service, College of the Virgin

Islands. I express my appreciation for this assistance. Special thanks to Mrs. Liz

Wilson for her effort in proofreading and Mrs. Jean Cook for her valuable

typing assistance.



The Virgin Islands Code serves as the main resource information for this

booklet. However, much assistance was also received from various federal and

local government departments which included the Department of Finance, the

Legislature Post-Audit Division, and the local Social Security Office.



Kwame Garcia



Issued in furtherance of Cooperative Extension work, acts of Congress of May 8 and June 30, 1914 (as amended), in coopera-

tion with U.S. Department of Agriculture, 0.S. Padda, Director, College of the Virgin islands Cooperative Extension Service.

The College of the Virgin Islands Cooperative Extension Service is an Equal Opportunity/Affirmative Action organization,

providing educational services in the fields of agriculture, home economics, community resource development, 4-H youth

development and related subjects to all persons regardless of race, color, religion, sex or national origin.

COOPERATIVE EXTENSION SERVICE

U.S. DEPARTMENT OF AGRICULTURE

COLLEGE OF THE VIRGIN ISLANDS

P.O. BOX L, KINGSHILL

ST. CROIX, VIRGIN ISLANDS 00850



OFFICIAL BUSINESS

PENALTY FOR PRIVATE USE $300



POSTAGE AND FEES PAID



U.S. DEPARTMENT OF AGRICULTURE



AGR 101



Printed by Prestige Press - St. Croix