§1642 — Title 48 Territories and Insular Possessions | U.S. Code

Summary

Money from customs duties, U.S. income tax, any taxes Congress levies on Virgin Islands residents, and fees for quarantine, passports, immigration, and naturalization must go into the Virgin Islands treasury and can be spent as the Virgin Islands Legislature decides. The cost of collecting those amounts may be deducted only if the Comptroller of the Virgin Islands certifies the costs are directly tied to importing petroleum products, and only until January 1, 1982. Any other collection costs not sent earlier under the August 18, 1978 Act must be sent now to the Virgin Islands Treasury, no matter what other laws say. People whose permanent home is in the Virgin Islands must meet their U.S. income tax duty by paying tax on all income, from inside and outside the islands, into the Virgin Islands treasury. This does not apply to taxes listed in section 3811 of the Internal Revenue Code.

Title 48, §1642

Territories and Insular Possessions — Source: USLM XML via OLRC

The proceeds of customs duties, the proceeds of the United States income tax, the proceeds of any taxes levied by the Congress on the inhabitants of the Virgin Islands, and the proceeds of all quarantine, passport, immigration, and naturalization fees collected in the Virgin Islands, (less the cost of collecting such duties, taxes and fees as may be directly attributable (as certified by the Comptroller of the Virgin Islands) to the importation of petroleum products until January 1, 1982: Provided, That any other retained costs not heretofore remitted pursuant to the Act of August 18, 1978, shall be immediately remitted to the Treasury of the Virgin Islands notwithstanding any other provision of law) shall be covered into the treasury of the Virgin Islands, and shall be available for expenditure as the Legislature of the Virgin Islands may provide: Provided, That the term “inhabitants of the Virgin Islands” as used in this section shall include all persons whose permanent residence is in the Virgin Islands, and such persons shall satisfy their income tax obligations under applicable taxing statutes of the United States by paying their tax on income derived from all sources both within and outside the Virgin Islands into the treasury of the Virgin Islands: Provided further, That nothing in this chapter shall be construed to apply to any tax specified in section 3811 of the Internal Revenue Code.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Act of

August 18, 1978, referred to in text, probably means Pub. L. 95–348, Aug. 18, 1978, 92 Stat. 487, which enacted section 1645 and 1841 of this title and section 410dd of Title 16, Conservation, amended section 1421h, 1469a, 1575, and 1642 of this title and section 398a and 398c to 398f of Title 16, and enacted provisions set out as a note under section 1421, 1641, and 1681 of this title. For complete classification of this Act to the Code, see Tables. This chapter, referred to in text, was in the original “this Act”, meaning act

July 22, 1954, ch. 558, 68 Stat. 497, known as the Revised Organic Act of the Virgin Islands, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 1541 of this title and Tables. section 3811 of the Internal Revenue Code, referred to in text, means section 3811 of the Internal Revenue Code of 1939, which was repealed by section 7851 of the Internal Revenue Code of 1954, Title 26. Similar provisions are contained in section 7651 of Title 26. The Internal Revenue Code of 1954 was redesignated the Internal Revenue Code of 1986 by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of Title 26, Internal Revenue Code. See also section 7852(b) of Title 26 for provision that references in any other law to a provision of the 1939 Code, unless expressly incompatible with the intent thereof, shall be deemed a reference to the corresponding provision of the 1986 Code. Codification Section constitutes subsec. (a) of section 28 of act July 22, 1954. Subsec. (b) of section 28 amended section 3350 of former Title 26, Internal Revenue Code, 1939, and subsecs. (c) and (d) thereof are classified to section 1643 and 1644, respectively, of this title.

Amendments

1980—Pub. L. 96–205 inserted provisions relating to deductions for the costs of collecting the duties, taxes, and fees attributable to the importation of petroleum products until Jan. 1, 1982, provided that outstanding retained costs are immediately remitted to the Treasury of the Virgin Islands. 1978—Pub. L. 95–348 struck out “less the cost of collecting all of said duties, taxes, and fees,” before “shall be covered”.

§1642 Use of certain proceeds for expenditure; income tax obligations of inhabitants