“This Agreement, when ratified by the Legislature of the Virgin Islands, marks the greatest single financial step forward we have taken in this Territory in fifty years.” That is Virgin Islands Governor John P. deJongh, Jr. talking back in June about beverage behemoth Diageo’s plans to build a distillery on St. Croix. Continue Reading »

The economic crisis has been dominating the news as well as the attention of politicians; however, this last Tuesday night a bill was passed in the Senate relating to rum taxes and the U.S. Virgin Islands. The bill says that the U.S. Virgin Islands and Puerto Rico will receive $13.25 for each proof (a liquid gallon consisting of 50% alcohol) gallon of rum produced in the U.S. Virgin Islands and sold in the United States. The bill, S. 2886, extends a previous tax arrangement that lasted from July 1, 1999 to December 31, 2007. The bill is retroactive to January 1, 2008, and extends the 1999 arrangement to December 31, 2009. Continue Reading »