On Thursday, December 9th, the Occupancy Tax Efficiency Act (Bill 34-0070) was approved by the Rules & Judiciary Committee. The bill now includes an amendment (Amendment 34-397) created specifically to expand the language to re-define “hotelkeeper or innkeeper” to include booking agencies and deeming the activities of such organizations as doing business in the Virgin Islands. The Occupancy Tax Efficiency Act, requires the Bureau of Internal Revenue and the Department of Tourism to enter into agreements with all major accommodation booking platforms to collect the 12.5 percent room tax and remit it directly to the Government.
Following the hearing, Senator Carrión reiterated that this was not a new tax, but one that has been at times challenging to collect. The Department of Tourism, the Division of Economic Research, the Bureau of Internal Revenue, the Department of Licensing and Consumer Affairs and the V.I. Hotel & Tourism Association all testified in favor of the measure’s intent, noting the exponential growth of vacation rentals being booked through these websites.
Hotel Occupancy Taxes are used to support marketing efforts for the Territory, local athletic programs, and other critical initiatives.
