REVENUE ESTIMATING CONFERENCE March 25, 2022 JOEL LEE, CPA, CGMA Director 1 VIRGIN ISLANDS BUREAU OF INTERNAL REVENUE MISSION 2 To administer and enforce the tax laws of the Virgin Islands. STRATEGIC OBJECTIVES • To promote voluntary compliance with the internal revenue tax laws • To collect the tax revenues owed to the Government of the Virgin Islands. 3 GENERAL FUND TAXES • INCOME TAX • INDIVIDUAL • CORPORATE • GROSS RECEIPTS TAX • EXCISE TAX • ENVIRONMENTAL INFRASTRUCTURE IMPACT FEE 4 GENERAL FUND TAXES • CONTAINER TAX • $50/$100 dollars per container based on size of container • TIRE TAX • $1/$2 on every tire purchased • ENTERTAINMENT TAX • 5% of gross receipts • FRANCHISE TAX • 5% of franchise gross subscriber receipts 5 SPECIAL FUNDS 6 • HOTEL OCCUPANCY TAX 12.5% of hotel room rate • HIGHWAY USER’S TAX 16 cents per pound • FUEL TAX 14 cents per gallon of gasoline/diesel SPECIAL FUNDS 7 • VEHICLE RENTAL SURCHARGE $3.75 per day of car rental • CASINO TAX 8% - 12% on gross revenue of Casino • RACINO TAX Annual rate of 19.25% of gross revenues 8 GENERAL FUND COLLECTIONS (Fiscal Years 2019 - 2023) TAX CATEGORIES FY 2019 ACTUAL FY 2020 ACTUAL FY 2021 ACTUAL FY 2022 PROJECTION FY 2023 PROJECTION INCOME Individual - Income 68,608,222.81 $ 80,092,695.47 $ 120,135,008.90 $ 132,148,509.79 $ 145,363,360.77 $ Estimated Tax 72,208,127.22 $ 67,996,354.80 $ 53,956,595.13 $ 59,352,254.64 $ 65,287,480.11 $ Withholding Tax 229,363,837.24 $ 230,773,727.05 $ 209,730,565.20 $ 230,703,621.72 $ 253,773,983.89 $ Extension 54,088,290.75 $ 69,947,289.81 $ 54,250,322.35 $ 59,675,354.59 $ 65,642,890.04 $ Federal Cover Over 19,736,027.28 $ 5,157,381.00 $ 1,689,199.00 $ 3,500,000.00 $ 3,850,000.00 $ Military (Reimb.) Making Work Pay Credit (Reimb.) USVI Cover Over Sub-total Individual Income 444,004,505.30 $ 453,967,448.13 $ 439,761,690.58 $ 485,379,740.74 $ 533,917,714.81 $ CORPORATE Corporate - Income 13,583,413.25 $ 18,495,610.31 $ 25,814,445.49 $ 28,395,890.04 $ 31,235,479.04 $ Estimated 34,500,136.08 $ 21,705,451.38 $ 21,177,596.39 $ 23,295,356.03 $ 25,624,891.63 $ Extension 15,758,603.58 $ 27,911,186.57 $ 25,480,971.37 $ 28,029,068.51 $ 30,831,975.36 $ Sub-Total Corporate Income 63,842,152.91 $ 68,112,248.26 $ 72,473,013.25 $ 79,720,314.58 $ 87,692,346.03 $ Total Income 507,846,658.21 $ 522,079,696.39 $ 512,234,703.83 $ 565,100,055.31 $ 621,610,060.84 $ 9 GENERAL FUND COLLECTIONS (Fiscal Years 2019 - 2023) TAX CATEGORIES FY 2019 ACTUAL FY 2020 ACTUAL FY 2021 ACTUAL FY 2022 PROJECTION FY 2023 PROJECTION GROSS RECEIPTS 243,629,626.76 $ 262,243,936.79 $ 241,770,071.47 $ 265,947,078.62 $ 292,541,786.48 $ EXCISE 10,879,551.82 $ 2,040,255.62 $ 20,196,656.87 $ 40,633,174.77 $ 44,696,492.25 $ ENTERTAINMENT - $ 6,863.75 $ - $ - $ - $ MISCELLANEOUS 91,584.74 $ 56,845.50 $ 56,572.50 $ 62,229.75 $ 68,452.73 $ FRANCHISE 674,217.34 $ 764,409.59 $ 726,955.31 $ 934,185.67 $ 1,027,604.24 $ ENVIRONMENTAL INFRASTRUCTURE IMPACT FEE 85% 2,805,250.35 $ 2,799,972.46 $ 4,238,414.50 $ 4,752,537.32 $ 5,227,791.05 $ Total Other Taxes 258,080,231.01 $ 267,912,283.71 $ 266,988,670.65 $ 312,329,206.13 $ 343,562,126.74 $ Total General Fund 765,926,889.22 $ 789,991,980.10 $ 779,223,374.48 $ 877,429,261.44 $ 965,172,187.59 $ 10 $244 $262 $242 $265 $293 $444 $454 $440 $485 $533 $64 $68 $72 $79 $87 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Comparison by Major Tax Categories FY 2018 –FY 2023 (in Millions) Gross Receipts Indiv Income Corp Income 11 SPECIAL FUNDS COLLECTIONS (Fiscal Years 2019 - 2023) TAX CATEGORIES FY 2019 ACTUAL FY 2020 ACTUAL FY 2021 ACTUAL FY 2022 PROJECTION FY 2023 PROJECTION ARBITRATION DEPOSIT - $ 600,000.00 $ - $ - $ - $ LONESOME DOVE FUND 160,657.32 $ - $ 950,000.00 $ 950,000.00 $ 950,000.00 $ FUEL 4,820,363.37 $ 4,788,888.08 $ 5,225,413.45 $ 6,009,225.47 $ 6,610,148.01 $ HIGHWAY USER'S 6,903,065.70 $ 5,052,071.31 $ 4,761,913.90 $ 4,655,171.88 $ 5,120,689.06 $ HOTEL 20,608,750.15 $ 17,692,636.31 $ 35,021,281.27 $ 43,990,705.97 $ 48,389,776.56 $ RACINO 4,796.25 $ - $ - $ - $ - $ GROSS CASINO 1,978,110.49 $ 1,154,830.72 $ 2,171,663.03 $ 2,388,829.33 $ 2,627,712.27 $ ENVIRONMENTAL INFRASTRUCTURE IMPACT FEE 15% 810,529.69 $ 494,161.54 $ 747,955.50 $ 838,683.07 $ 922,551.37 $ INVESTMENT ALTERNATIVE 124,625.05 $ 113,626.89 $ 119,217.25 $ 131,138.98 $ 144,252.87 $ VEHICLE RENTAL 3,132,646.70 $ 2,491,323.14 $ 2,772,613.28 $ 2,887,136.34 $ 3,175,849.97 $ Total Special Fund 38,543,544.72 $ 32,387,537.99 $ 51,770,057.68 $ 61,850,891.03 $ 67,940,980.13 $ TOTAL 804,470,433.94 $ 822,379,518.09 $ 830,993,432.16 $ 939,280,152.47 $ 1,033,113,167.72 $ 12 ECONOMIC IMPACT PAYMENTS (STIMULUS PAYMENTS) 146,648 UNITS $220.9 MILLION CARES ACT 1 • 48,430 UNITS • $74,400,473.00 CARES ACT 2 13 ECONOMIC IMPACT PAYMENTS ARPA ACT • 48,258 UNITS • $40,346,230.00 • 49,960 UNITS • $106,207,642.00 14 INCOME TAX REFUNDS PAID BY CALENDAR YEAR (2019-2022) $63,889,250.98 $49,078,464.45 $91,164,846.02 $100,000,000.00 $0.00 $20,000,000.00 $40,000,000.00 $60,000,000.00 $80,000,000.00 $100,000,000.00 $120,000,000.00 CY 2019 CY 2020 CY 2021 CY 2022