Federal
Uncertainty Clouds Rum Tax Legislation: Plaskett Eagerly Awaits Proper Tax Bill

In a bid to stabilize the financial flow from rum sales, Stacey Plaskett, the US Virgin Islands’ delegate to Congress, has been keenly monitoring an opportunity to integrate a permanent increase in excise taxes. This bipartisan initiative, aimed at amplifying the tax remittance for the Virgin Islands and Puerto Rico, is on standby, pending a suitable legislative vehicle for its inclusion.
The expiration of the last “tax extender” in 2021 meant a drop in remittances, from a boosted rate of $13.25 per barrel to the basic $10.50 per barrel. This adjustment has not only reduced the USVI’s revenue but has also complicated financial planning, given that prior debt securitization calculations were built around the higher remittance figure. In effect, the shortfall could elongate the repayment schedule of the bond note, which was critical for stabilizing the Government Employees’ Retirement System, by a significant seven years.
Although Plaskett exuded confidence about rectifying this issue by 2022’s close, the current situation in August 2023 suggests a more complex pathway ahead. Expressing her concerns, Plaskett mentioned, “While we were hoping to attach our amendment to a tax legislation, there hasn’t been a fitting bill presented by the Ways and Means Committee.” While there’s anticipation around legislation set for discussion post the September session resumption, Plaskett remains cautious about its feasibility. Drawing attention to the legislative intricacies, she remarked, “Given the Republican-drafted bill, even if it clears the House, I’m skeptical about its Senate approval.”
The delegate has also acknowledged the challenges posed by some Republican House members, who critique the tax amendment as overly generous. In response, Plaskett emphasized the historical significance and necessity of the tax initiative, signaling the need to better inform the opposition.
Despite the current legislative standstill, an air of optimism remains. Plaskett reveals that there’s an active effort, both from the governor’s team and a dedicated group of lobbyists representing the USVI government, to navigate this legislation to fruition. “It’s a collective effort, and everyone’s contributing,” she commented.
Highlighting the bipartisan potential of the initiative, Plaskett points out the diverse support from different states. “Considering the representation from Florida and New York, with a balance of Republican and Democrat delegates, and the push from Puerto Rican communities therein, I’m hopeful,” she stated. Plaskett believes that once a relevant tax bill emerges, the amendment’s inclusion will witness support across Congress.
Expressing her confidence in the process, the delegate affirmed her belief that any adopted measure will be applied retroactively to the period post the last extender’s expiration. She reassuringly mentioned, “Such adjustments are not uncommon in Congress. The challenge, however, lies in the unpredictability of the timeline, which depends largely on our Republican counterparts.”
Federal
Residents of U.S. Virgin Islands and Guam Contest Unfair Overseas Voting Laws at the Ninth Circuit Court

Inhabitants of the U.S. Virgin Islands, Guam, and additional territories are intensifying their battle against what they perceive as prejudiced federal and state overseas voting statutes. The ongoing Borja v. Nago case, presented to the U.S. Court of Appeals for the Ninth Circuit, is a pivotal development in this struggle, seeking to contest these controversial laws.
This week witnessed the plaintiffs imploring the court to oppose the stance of the U.S. Justice Department, which contends that voting does not constitute a “fundamental right” for inhabitants of U.S. territories. According to the Justice Department, residents of these territories can exercise their voting rights for the presidential election through absentee ballots in their last state of residence, provided they live in a foreign country or the Northern Mariana Islands. However, this privilege is not granted to those residing in areas such as Guam or the U.S. Virgin Islands.
Moreover, the Justice Department maintains that, should these laws be ruled unconstitutional, the federal government would still be shielded from legal actions. They propose that states, like Hawaii, have the capability to rectify any damages caused by federal discrimination. The department also implies that revoking overseas voting rights in the Northern Mariana Islands might be a more suitable solution than granting equal rights universally.
Neil Weare, the co-director of Right to Democracy, voiced his disillusionment with the Justice Department’s perspective, stating, “The federal government’s ongoing efforts to undermine democracy, self-governance, and political influence in U.S. territories is deeply troubling.” He stressed the indispensability of voting rights, regardless of one’s domicile.
Parker Rider-Longmaid, the legal representative for the Borja plaintiffs, rebuked the Justice Department for defending such a discriminatory federal statute, emphasizing that it is the duty of the federal government to redress the inequalities induced by the law.
In the previous year, a Hawaii district court dismissed a challenge to these laws. Current rules allow residents of states, including Hawaii, who relocate to foreign countries or the Northern Mariana Islands, to retain their presidential voting rights via absentee ballots. Unfortunately, this right is not afforded to those moving to Guam, the U.S. Virgin Islands, or other territories.
The case is currently in the queue for oral arguments in the Ninth Circuit, expected to be scheduled early in the forthcoming year.
In relation to this legal confrontation, Right to Democracy has launched a Territories Art Competition for adolescents between the ages of 12 and 17. The competition encourages participants to illustrate their perceptions of democracy through various mediums such as visual arts, prose, or music. Winners from each territory will be recognized and awarded. The deadline for submissions is October 10, 2023.
Neil Weare aspires for the youth in each territory to utilize this opportunity to articulate their democratic viewpoints, despite the Justice Department’s persistent denial of such rights in U.S. territories.
Federal
Virgin Islands Port Authority Faces $477K FAA Penalty; Takes Immediate Action

The U.S. Federal Aviation Administration (FAA) has recently proposed a civil fine of $477,000 against the Virgin Islands Port Authority (VIPA) for alleged lapses in maintenance at St. Thomas’ Cyril E. King International Airport.
The FAA’s proposed penalty, made public this past Tuesday, originates from a series of inspections carried out in 2021 and 2022. These inspections uncovered multiple violations at Cyril E. King Airport, such as deteriorated runway and taxiway surfaces, inadequately graded and drained safety zones, and obstructions within these areas. Additional concerns raised by the FAA include faded or incorrect runway indicators, faulty or absent edge lighting on runways, and improper fuel storage and handling procedures. The FAA also criticized VIPA for not issuing a critical Notice to Airmen (NOTAM), which would have informed airlines about a specific issue with the runway.
Responding promptly to the FAA’s enforcement notice, VIPA issued a statement this Thursday. Carlton Dowe, the Executive Director of VIPA, provided further details on the matter. He acknowledged that while some of the issues were already on VIPA’s radar, several were newly identified in the FAA’s August 23 communication.
Dowe stressed VIPA’s proactive approach in addressing these concerns. “We’ve already submitted a comprehensive response to the FAA, supported by extensive documentation. This proves that many of the cited deficiencies have either been resolved, are currently being addressed, or simply do not exist,” Dowe said. He also highlighted VIPA’s ongoing partnership with the FAA’s Atlanta Airports District Office to plan and implement capital projects aimed at ensuring compliance.
Dowe also took the opportunity to spotlight VIPA’s commitment to safety and infrastructure improvements at Cyril E. King Airport. “We’re allocating more than $29 million for safety upgrades, and additional projects, such as runway rehabilitation, are also in the works,” he noted. Dowe elaborated on the logistical hurdles of operating a single-runway airport like Cyril E. King. “It’s not practical to shut down the runway for repairs. Therefore, we’ve scheduled most of our repair work for nighttime to minimize disruption to flight schedules,” he added.
As discussions with the FAA are ongoing, Dowe reassured the public that operations at Cyril E. King Airport would continue without interruption.
Federal
Momentum Builds for Plaskett’s Bill to Halt NPS Expansion in St. John Amid Calls for Fixed Park Boundaries

In a recent exclusive discussion, Congresswoman Stacey Plaskett shed light on the growing legislative movement aimed at curbing the expansion of the National Park Service (NPS) on the island of St. John. This initiative comes in response to the concerns of local inhabitants who feel increasingly hemmed in by federally controlled lands.
During the interview, Plaskett touched upon the controversial land exchange involving Whistling Cay and a federal land parcel in Estate Catherineberg. She expressed that the swap was a necessary action given the current circumstances. However, she also recognized the deep-seated emotional responses from the residents of St. John, attributing them to the island’s historical relationship with the NPS.
With the NPS currently owning an estimated 60% of St. John, Plaskett posed the question, “The National Park’s establishment was undoubtedly a positive development, but at what expense?” She revealed that a bill is underway to permanently establish the boundaries of the Virgin Islands National Park, thereby preventing any future territorial growth by the NPS. The legislation has already undergone its preliminary hearing in the House of Representatives.
Senator Angus King of Maine, chair of the Senate Energy and Natural Resources Committee, has pledged his support for the initiative. Plaskett dismissed the notion that the park’s existing boundaries could be reduced, citing President Biden’s unwillingness to establish such a precedent. The President has indicated that he would not endorse any measures that could trigger a flood of similar requests from other states and territories.
Plaskett also clarified misconceptions surrounding a land transfer in Maine, which some Virgin Islanders cited as proof that the NPS could relinquish lands without a reciprocal exchange. She explained that the Maine transfer was the culmination of a 30-year-old legislative agreement, not a unilateral land gift from the NPS.
The congresswoman emphasized that the bill to cement the Virgin Islands National Park’s boundaries is gaining traction. A companion bill is currently being drafted in the Senate to expedite the legislative process. To further bolster the bill’s chances of success, Plaskett has arranged for Senate staff to visit St. John and engage with the local community, as the island’s future has implications for the entire Virgin Islands territory.
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