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Tuesday, December 13, 2016
VIRGIN ISLANDS
The Virgin Islands Daily News 5
Mapp turns to new taxes in accepting
court ruling on 8% government pay cut
By JONATHAN AUSTIN
Daily News Staff
Gov. Kenneth Mapp said Monday
he believes the territory must accept a
federal court ruling that found a 2011
government employee pay cut uncon-
stitutional.
“After reviewing the case with the at-
torney general and reviewing the case
with our financial team, I really am of
the mind that the government of the
Virgin Islands should make good on
this claim,” Mapp said.
He said he wants the Legislature to
sign on to a plan to pay the claim and
address other issues by approving in-
creased sin taxes, taxes on time-share
occupants, and changes that set a
minimum tax for property owners who
claim tax credits.
He said the lawsuit judgement is val-
ued at $65 million.
“We will include all workers affected
by the cut. In unions, all unions, and out
of unions,” Mapp said.
The territory had asked the full 3rd
US. Circuit Court of Appeals to recon-
sider the judgement, which was penned
by three of the court’s judges.
The court rejected that request Mon-
day.
The governor made his comments
Today
The Homeland Security, Justice
and Public Safety Committee will
meet at 9 a.m. in the Lawaetz Con-
ference Room on St. Croix to get an
update on the V.I. Police Department,
the V.I. Corrections Bureau and the
VI. Health Department.
Wednesday
The Finance Committee will meet
at 9a.m. in the Ottley Legislative
Hall on St. Thomas to consider a bill
relating to the International Banking
Center Regulatory Act and a bill re-
appropriating $2 million of Luis Hos-
during a press conference Monday
morning on St. Croix.
The conference originally had been
scheduled for Friday on St. Thomas,
but was delayed for no stated reason.
Mapp also announced he has in-
voked public exigency authority to
fast track road repairs in the territory.
He described public exigency as
“sort of a public emergency” declara-
tion that should allow the government
to more quickly award repair contracts
for roadways that have deteriorated
following extensive rainfall.
Mapp said he has consulted with
federal authorities and hopes to access
existing highway project funds “to use
them to get the primary road system
and secondary road system repaired.”
He said the work will be done
under existing federal road require-
ments, meaning they include proper
drainage, sidewalks, striping and other
elements, “‘all compliant with federal
highway and DOT standards.”
Regarding the 3rd Circuit ruling on
the 8 percent cuts enacted through the
VI. Economic Stability Act of 2011,
Mapp said the territory could pay off
the amounts due to employees in two
years if plaintiffs in the case give the
government time to make good.
He said the payments can be satis-
Senate Agenda
pital appropriations for the use of the
HVAC project.
Thursday
The Rules and Judiciary Com-
mittee will meet at 9 a.m. in Ottley
Legislative Hall on St. Thomas to
consider bills that include a bill to in-
crease the Emergency Services Sur-
charge from $1 to $2; a bill providing
for the disposition of proceeds from
the rental or sale of housing units ac-
quired in the Limetree Bay Terminals
operating agreement to a bill regard-
ing the establishment of credit unions
and their oversight; and a bill creating
the V.I. Risk-Based Capital for Insur-
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fied if new tax collections from what
he called the Virgin Islands Enhance-
ment and Economic Recovery Act,
which must be approved by the Sen-
ate, total at least $80 million.
He said alcohol and tobacco in the
Virgin Islands is sorely undertaxed,
and 40 million bottles of beer are sold
each year in the territory.
Additional tax also would be
charged on distilled alcohol and wine.
“Tn addition, we are seeking at least
$12 per carton tax on cigarette and
tobacco products in the territory,” as
well as “a sugar tax on carbonated
sweet beverages,” Mapp said.
Mapp suggested most of the mil-
lions of beers are consumed by tour-
ists, so the tax would target visitors
who enjoy the territory and should
contribute to maintaining its infra-
structure.
“Tf you felt that was too expensive,
then stop drinking beer. That’s healthy.
That’s a benefit?’ Mapp said, referring
to locals who drink alcohol.
Mapp is also seeking a tax on time-
share occupants, and wants to require
that any resident claiming credits on
property taxes pay a minimum annual
property tax of $360.
He said the additional tax revenue
could also provide $18 million to pay
ers Act.
Friday
No meetings.
Govemor’s
Agenda
Today
No appearances scheduled.
Government House did not
provide Gov. Kenneth Mapp’
agenda.
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worker’s compensation debts to medi-
cal providers, hospitals and injured
workers in the territory.
Mapp said Monday that “as of to-
day,” he was not prepared to call the
Legislature back into session to ad-
dress his proposal.
Senate Majority Leader Sammuel
Sanes said Monday he hopes more
revenue could be generated through
the reopening of the St. Croix oil refin-
ery to pay some of what Mapp wants.
“We shouldn’t rely so much on
taxation. Right now, people of the
Virgin Islands are facing a financial
burden. Now we want to tax them
more. That is not appealing to me at
all,” he said.
“There are some good points” to the
governor’s suggestions, Sanes said. “I
see his point. I can understand where
he is coming from,” he said.
Lame duck Sen. Clifford Graham
said Monday that the promise to repay
government workers back for the pay
cut won’t be enough to convince legis-
lators to support Mapp’s proposal.
“The governor has sent us his ver-
sion of the deficit reduction strategy,”
Graham said. There are parts that
senators will support, and “some we
definitely would not be in favor of,”
he said.
Graham said paying back the gov-
ernment employees should be a prior-
ity.
“Are they Number 1 on the priority
list? I think there are more critical is-
sues now,” Graham said.
Graham said he is not sure whether
the 31st Legislature will consider
Mapp’s approvals before it stands
down this month.
“T am willing and able to work until
my last day,” he said. “I am not sure
the calendar will afford us the time to
do so.”
— Contact Jonathan Austin at 340-
714-9104 or email jaustin@dailynews.
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