Gov. Albert Bryan Jr. signed legislation Nov. 10 establishing a 90-day tax amnesty period that waives penalties on overdue property, income and gross receipts taxes across the U.S. Virgin Islands.
The measure, Bill No. 36-0083, comes more than seven years after Hurricanes Irma and Maria devastated the territory in 2017, followed by Tropical Storm Ernesto in 2024. The amnesty targets residents and business owners who remain in financial hardship from those disasters and may have fallen behind on tax obligations.
What the Amnesty Covers
Under the new law, property owners, wage earners and business operators can settle delinquent tax accounts without facing additional penalties that typically compound financial strain. The 90-day window allows taxpayers to catch up on obligations to the territory without the accumulated costs that often accompany late payments.
The provision targets three major tax categories: residential and commercial property taxes, which fund school infrastructure and municipal services; income taxes paid by employed residents; and gross receipts taxes levied on businesses across retail, hospitality and service sectors.
Why This Matters Now
Many Virgin Islands households and small businesses still carry debt from 2017’s devastating storm season. While recovery efforts have advanced, insurance disputes, construction delays and limited job availability in some sectors have left families struggling to meet obligations to the government.
The amnesty removes a significant barrier: the fear that contacting tax authorities will trigger additional fines. This encourages compliance and helps stabilize government revenue at a time when the territory faces budget constraints.
Small business owners operating in St. Thomas, St. John and St. Croix—particularly those in tourism, retail and hospitality—have cited tax debt as a persistent obstacle to expansion and hiring. The amnesty provides breathing room for those operations to bring accounts current and move forward.
Broader Legislative Session
The tax amnesty was one of several measures the governor approved following the 36th Legislature’s Oct. 30, 2025 session. Bryan signed bills addressing government operations, workforce policy, public safety and cultural recognition.
Notably, the governor also approved legislation allowing retired government employees who return to work at the University of the Virgin Islands to continue collecting their pensions while earning a salary—a change aimed at attracting experienced professionals to higher education posts at a time when UVI faces enrollment challenges.
Bryan also signed measures expanding elder abuse protections, adjusting commercial driver blood alcohol thresholds and mandating weapons training for licensed security personnel. He imposed line-item vetoes on portions of a bill funding the Randall “Doc” James Racetrack, citing constitutional concerns over judicial grace periods and language affecting retiree hiring in critical fields like teaching and nursing.
Implementation Questions Ahead
The amnesty’s effectiveness will depend on how the Department of Taxation communicates the opportunity to taxpayers. Many residents may not be aware such programs exist or may distrust government outreach efforts after experiencing prolonged recovery delays.
Eligible taxpayers should monitor announcements from the territory’s tax department for specific amnesty period dates and procedures. The window is expected to launch in coming weeks, though exact timing has not yet been announced.
As the territory continues rebuilding nearly eight years after Hurricane Maria, this amnesty represents a modest but meaningful step toward helping families and businesses shed accumulated tax burdens and reinvest locally.
