Spring revenue conference projected stable growth for U.S. Virgin Islands finances

Gov. Albert Bryan Jr. attended the Office of Management and Budget’s Spring Revenue Estimating Conference on March 25, 2022, where 21 Virgin Islands government agencies, autonomous entities and the two district chambers of commerce presented revenue forecasts.

According to the presentations, the territory’s financial outlook was stable and growing, with revenues at or above pre-pandemic levels and projected increases extending into fiscal years 2023 and 2024.

Data presented by the Bureau of Economic Research showed the U.S. Virgin Islands’ gross domestic product fell 2.2% in 2020, compared with a 3.5% decline for the U.S. overall and declines of about 10% to 12% in other U.S. territories. The bureau also reported first-quarter 2022 visitor arrivals of 388,000, up from 200,000 in the same period of 2021, hotel revenues up 75%, and unemployment at 7.9% in December 2021, the lowest level since March 2020.

Officials said the reopening of the Marriott on St. Thomas and the restart of the Limetree Bay refinery on St. Croix were expected to add to revenues in fiscal years 2023 and 2024.

The Bureau of Internal Revenue projected individual and corporate income tax collections would rise from about $512 million in 2021 to about $565 million in fiscal 2022 and $622 million in fiscal 2023. Gross receipts tax collections were projected to increase from about $242 million in 2021 to about $266 million in fiscal 2022 and $292 million in fiscal 2023.

The Office of Disaster Recovery said about $8 billion in disaster recovery funding was anticipated, with more than 200 projects expected to be in design or construction during fiscal years 2023 and 2024.

The Office of the Tax Collector projected property tax revenue would increase 5% from $58 million in fiscal 2022 to $61 million in fiscal 2023, and to $64 million in fiscal 2024.

Official source: https://www.vi.gov/spring-revenue-estimating-conference-reports-positive-outlook-usvis-gdp-outperforms-those-of-mainland-other-territories/