OMB projected $773.4 million in FY2021 revenue for U.S. Virgin Islands

The Virgin Islands Office of Management and Budget held its fall Revenue Estimating Conference on December 2, 2020, with 18 revenue-generating agencies presenting a fiscal 2021 outlook.

OMB Director Jenifer O’Neal projected fiscal 2021 revenue at $773.4 million, down from $845.2 million in actual revenue in fiscal 2019. The forecast included $407.1 million in individual income tax revenue, $185.9 million in gross receipts taxes, $53 million in real property taxes, $60.7 million in corporate income taxes, $2.1 million in trade and excise taxes, and $64.5 million in other operating revenue.

O’Neal said the lower forecast reflected business closures and reduced employment during 2020 tied to the Covid-19 pandemic.

According to a Moody’s revenue analysis prepared for OMB, the territory’s budgeted revenue was estimated at $756.3 million for fiscal 2022 and $850.4 million for fiscal 2023.

Agency presentations at the conference said total tax revenue for fiscal 2020 was $822.4 million. They also reported that as of October 2020, the territory’s unemployment rate was 9.4%, with 4,220 people unemployed.

The presentations said air arrivals from January through August 2020 totaled 281,699, down 39% from 464,926 in the same period of 2019. Hotel tax revenue for fiscal 2020 was $17.7 million, down from $20.5 million in fiscal 2019.

The conference materials also said cruise arrivals were not expected to return until spring 2021 and that hotel tax revenues were expected to remain reduced in fiscal 2021.

Official source: https://www.vi.gov/bryan-roach-administration-outlines-covid-19s-economic-impact-on-usvi/