Gross Receipts Taxes Loan Note
Bonds issued by the PFA.
The issuance of general obligation bonds is restricted to an amount no greater than 10% of the aggregate assessed valuation of taxable property in the Territory. The Government’s general obligation bonds are backed entirely by Gross Receipts Taxes.
Pursuant to Title 33 of the Virgin Islands Code, Section 43 (the “Gross Receipts Tax statute”), Gross Receipts Taxes are those revenues received by the Government from the payment by individuals and entities doing business in the United States Virgin Islands (the “Virgin Islands”) currently at a tax rate of 5.0% on the gross receipts of such business. The Gross Receipts Tax is broad and extends to most sellers of services and goods. According to the Gross Receipts Tax Statute, “gross receipts” means “all receipts, cash or accrued, of the taxpayer for services or derived from trade, business, commerce or sales, and the value accruing from the sale of tangible personal property or services, or both, including rentals, fees and other involvements, however designated, without any deduction on account of the cost of the property sold, the cost of materials used, labor cost, royalties, taxes, interest or discount paid, and any other expenses whatsoever.” Certain businesses are exempt from the application of the Gross Receipts Tax.
The gross receipts tax bonds were issued for working capital and for various capital projects and are secured by the Government’s Gross Receipts Taxes.
Please view the below offering statement(s) and bond report(s) for more information on individual bond series issued under this bond type.