§1397 — Title 48 Territories and Insular Possessions | U.S. Code

Summary

U.S. income tax laws now in effect, and any passed later, apply in the Virgin Islands, and the tax money must be paid into the islands' treasuries. Regardless of other laws, the Virgin Islands Legislature may add a surtax on all taxpayers of up to 10 percent of their annual income tax obligation to the government of the Virgin Islands.

Title 48, §1397

Territories and Insular Possessions — Source: USLM XML via OLRC

The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The income-tax laws in force in the United States of America, referred to in text, are classified to Title 26, Internal Revenue Code. Codification Section is from act July 12, 1921, popularly known as the Naval Service Appropriation Act, 1922.

Amendments

1976—Pub. L. 94–392 inserted proviso authorizing Legislature of Virgin Islands to levy a surtax, not to exceed 10 per centum, on annual income tax obligation of all taxpayers.

Statutory Notes and Related Subsidiaries

Application of Western Hemisphere Trade Corporation Provision Under the Virgin Islands Tax Laws Pub. L. 92–178, title III, § 307, Dec. 10, 1971, 85 Stat. 524, provided that for purposes of applying the income tax laws of the United States with respect to the Virgin Islands under this section, subpart C of part III of subchapter N of chapter 1 of the Internal Revenue Code of 1954 [former 26 U.S.C. 921, 922] (relating to Western Hemisphere Trade Corporations) shall be treated as having been repealed effective with respect to taxable years beginning after Dec. 10, 1971.

§1397 Income Tax Laws of United States in Force; Payment of Proceeds; Levy of Surtax on All Taxpayers