Virgin IslandsBill No. 36-025936th Legislature of the Virgin Islands (2025-2026)legislatureWALLET

An act amending title 29 Virgin Islands Code, chapter 23, section 1313 by expanding benefits under the Hotel Development Program for hotel improvement

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

More project tax revenue for St. Croix hotels

The law sends 100% of designated hotel and casino taxes, and any ERF, to a project’s fund if it is a new build with permits not finalized before this law, or a St. Croix upgrade that invests over $25 million and adds at least 25% more rooms. It sends 50% of those two taxes (and 100% of any ERF) if at least 70% of units were unoccupiable due to natural events, or a St. Croix project invests over $10 million. To get the top tier, applicants must plan over $25 million and finish substantially within five years after the agreement; if not, starting in year six they only get the lower (a)(2) allocation. The mid-tier needs over $10 million and substantial completion within two years. If a project misses these tests, revenues go to its ERF Trust Account, and the 100% allocation is now required, not elective. The law also defines a qualifying hotel improvement as over $25 million in new capital (not routine or deferred maintenance) and counts added rooms above the room count at application.

Local residents get hiring preference

Developers must give hiring preference to Virgin Islands residents, as defined in law, when filling jobs covered by approved employment waivers. The process is renamed a “petition for employment waiver,” and the Virgin Islands Department of Labor handles those petitions. This raises local residents’ chances for hotel jobs and clarifies who runs the waiver process.

Dedicated trust accounts for project funds

Within 30 days after a project tells the Public Finance Authority it will use designated hotel, casino, or ERF revenues, the Authority must open a separate, interest‑bearing Project Hotel Development Trust Fund for that project. The Authority must tell the Economic Development Authority, the tax bureau, and the Department of Finance the account details. The Authority must maintain the account and may use the money only for that account’s administration, not for other purposes. The same notice and maintenance rules apply to ERF Trust Accounts.

New fee timing and 1.5% base

The 1.5% program fee is now based on the prior calendar year’s amounts and is due within 30 days of the Authority’s invoice. The Tourism payment in section 1314(b) must be made within 30 calendar days of receipt. This sets clear due dates for what businesses owe and speeds when program payments are made.

Stricter program rules and one repeal

An agency duty in section 1307(e) is now mandatory, not optional. The law also deletes the prior text of section 1317 and marks it “Reserved.” Applicants must follow the remaining rules and cannot rely on what section 1317 used to provide.

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Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Enacted

    3/24/2026legislature
  2. To Governor

    3/20/2026legislature
  3. Floor

    3/18/2026legislature
  4. Floor

    3/18/2026legislature
  5. Introduced

    2/26/2026legislature

Bill Text

  • Enacted Act

    3/24/2026

  • Amendment

    3/18/2026

  • Bill Text

    2/26/2026

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