48 U.S.C. § 1574 — Legislative powers and activities
submitted 72 years ago by ch. 558 to r/title-48-TERRITORIES-AND-INSULAR-POSSESSIONS · 1,279 words · no verdicts yet
The Virgin Islands legislature may legislate on all proper subjects consistent with applicable Federal law and this chapter, subject to treaty and tax-equality limits. The section authorizes several kinds of bonds, continues existing laws subject to change and congressional annulment, identifies repealed subsections, and limits Virgin Islands customs duties.
(a) Authority and limits. The Virgin Islands legislature may legislate on all proper subjects not inconsistent with this chapter or United States laws applicable to the Virgin Islands. It may not impair rights under a United States treaty or international agreement, or tax nonresidents’ land or other property at a higher rate than residents’ property.
(b) Bonds. (i) The legislature may issue bonds or other obligations for a legislatively authorized public improvement or undertaking. They may be paid only from revenue directly derived from that improvement, undertaking, or project. The government may set their dates, denominations, maturity amounts and times, payment places, registration rights, execution, and redemption terms; maturity may not exceed 30 years. Former officers’ manual or facsimile signatures remain valid if they signed before delivery. Interest may not exceed the legislative rate and is payable twice yearly. Principal and interest are exempt from taxation by the United States, Virgin Islands, States, Territories, possessions, their political subdivisions, and the District of Columbia. The bonds are never general obligations of the Virgin Islands or United States. (ii)(A) Subject to this paragraph, the legislature may issue negotiable general-obligation bonds or other debt evidence, including tax- or revenue-anticipation notes, for any legislatively authorized public purpose. Virgin Islands debt may not exceed 10 percent of the total assessed value of taxable real property there. These bonds may have the dates, denominations, maturities up to 30 years, payment places, public or private sale, redemption, registration, execution, signature, and interest terms the legislature prescribes; interest may not exceed its specified rate. The bonds and interest are tax-exempt from the listed Federal, Virgin Islands, State, territorial, possession, subdivision, and District taxes. (B) These bonds and obligations are not United States debt, and the United States is not liable for them. (iii)(A) After September 30, 1984, the legislature may issue industrial development bonds as section 103(b)(2) of title 26 defines them. (B) Unless subparagraph (C) applies, the obligation and its income are exempt from State and local taxes in effect on or after October 1, 1984. (C) They are not exempt from State or local gift, estate, inheritance, legacy, succession, or other wealth-transfer taxes. (D) For this paragraph, “State” includes the District of Columbia, and county, municipal, territorial, dependency, and possession taxes count as local taxes. (E) Federal income-tax exclusion of interest is addressed in section 103 of title 26.
(c) Laws and ordinances. United States laws applicable to the Virgin Islands on July 22, 1954, including those made applicable under the June 22, 1936 Act, and local laws and ordinances then in force continue unless inconsistent with this chapter, until Congress provides otherwise. Subject to this chapter and congressional power to annul legislative Acts, the legislature may amend, alter, modify, or repeal continued local laws and ordinances, public or private and civil or criminal, and enact new laws consistent with applicable United States law.
(d), (e) Repealed. Pub. L. 97–357, title III, § 305, October 19, 1982, 96 Stat. 1709, repealed these subsections.
(f) Customs duty. (1) The legislature may impose a duty on articles imported for consumption in the Virgin Islands. It may not exceed 6 percent ad valorem, or the equivalent of 6 percent ad valorem for a specific or combined rate. (2) It may still allow any article to enter duty-free. (3) This subsection does not authorize repealing or amending a law in effect the day before October 15, 1977, concerning customs valuation or classification of articles imported into the Virgin Islands.
The legislative authority and power of the Virgin Islands shall extend to all rightful subjects of legislation not inconsistent with this chapter or the laws of the United States made applicable to the Virgin Islands, but no law shall be enacted which would impair rights existing or arising by virtue of any treaty or international agreement entered into by the United States, nor shall the lands or other property of nonresidents be taxed at a higher rate than the lands or other property of residents.
The legislature of the government of the Virgin Islands may cause to be issued on behalf of said government bonds or other obligations for a public improvement or public undertaking authorized by an act of the legislature. Such bonds or obligations shall be payable solely from the revenues directly derived from and attributable to such public improvement, public undertaking, or other project. Bonds issued pursuant to paragraph (i) may bear such date or dates, may be in such denominations, may mature in such amounts and at such time or times, not exceeding thirty years from the date thereof, may be payable at such place or places, may carry such registration privileges as to either principal and interest, or principal only, and may be executed by such officers and in such manner as shall be prescribed by the government of the Virgin Islands. Said bonds may be redeemable (either with or without premium) or nonredeemable. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of such bonds, such signature, whether manual or facsimile shall, nevertheless, be valid and sufficient for all purposes, the same as if such officers had remained in office until such delivery. The bonds so issued shall bear interest at a rate not to exceed that specified by the legislature, payable semiannually. All such bonds issued by the government of the Virgin Islands or by its authority shall be exempt as to principal and interest from taxation by the Government of the United States, or by the government of the Virgin Islands, or by any State, Territory, or possession or by any political subdivision of any State, Territory or possession, or by the District of Columbia. Such bonds shall under no circumstances constitute a general obligation of the Virgin Islands or of the United States.
Subject to the provisions of this paragraph (ii), the legislature of the government of the Virgin Islands may cause to be issued such negotiable general obligation bonds or other evidence of indebtedness, including but not limited to notes in anticipation of the collection of taxes or revenues, as it may deem necessary and advisable for any public purpose authorized by the legislature: Provided, That no such indebtedness of the Virgin Islands shall be incurred in excess of 10 per centum of the aggregate assessed valuation of the taxable real property in the Virgin Islands. Bonds issued pursuant to this paragraph (ii) shall bear such date or dates, may be in such denominations, may mature in such amounts and at such time or times, not exceeding thirty years from the date thereof, may be payable at such place or places, may be sold at either public or private sale, may be redeemable (either with or without premium) or nonredeemable, may carry such registration privileges as to either principal and interest, or principal only, and may be executed by such officers and in such manner, as shall be prescribed by the legislature of the government of the Virgin Islands. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of such bonds, such signature, whether manual or facsimile, shall nevertheless be valid and sufficient for all purposes, the same as if such officers had remained in office until such delivery. The bonds so issued shall bear interest at a rate not to exceed that specified by the legislature. All bonds issued by the government of the Virgin Islands, including specifically interest thereon, shall be exempt from taxation by the Government of the United States, or by the government of the Virgin Islands or any political subdivision thereof, or by any State, territory, or possession or by any political subdivision of any State, territory, or possession, or by the District of Columbia.
Bonds or other obligations issued pursuant to this paragraph (ii) shall not be a debt of the United States, nor shall the United States be liable thereon.
The legislature of the government of the Virgin Islands may cause to be issued after September 30, 1984, industrial development bonds (within the meaning of section 103(b)(2) 1 of title 26).
Except as provided in subparagraph (C), any obligation issued under subparagraph (A) and the income from such obligation shall be exempt from all State and local taxation in effect on or after October 1, 1984.
Any obligation issued under subparagraph (A) shall not be exempt from State or local gift, estate, inheritance, legacy, succession, or other wealth transfer taxes.
For purposes of this paragraph—
The term “State” includes the District of Columbia.
The taxes imposed by counties, municipalities, or any territory, dependency, or possession of the United States shall be treated as local taxes.
For exclusion of interest for purposes of Federal income taxation, see section 103 of title 26.
The laws of the United States applicable to the Virgin Islands on July 22, 1954, including laws made applicable to the Virgin Islands by or pursuant to the provisions of the Act of June 22, 1936 (49 Stat. 1807), and all local laws and ordinances in force in the Virgin Islands, or any part thereof, on July 22, 1954 shall, to the extent they are not inconsistent with this chapter, continue in force and effect until otherwise provided by the Congress: Provided, That the legislature shall have power, when within its jurisdiction and not inconsistent with the other provisions of this chapter, to amend, alter, modify, or repeal any local law or ordinance, public or private, civil or criminal, continued in force and effect by this chapter, except as herein otherwise provided, and to enact new laws not inconsistent with any law of the United States applicable to the Virgin Islands, subject to the power of Congress to annul any such Act of the legislature.
The Legislature of the Virgin Islands may impose on the importation of any article into the Virgin Islands for consumption therein a customs duty. The rate of any customs duty imposed on any article under this subsection may not exceed—
if an ad valorem rate, 6 per centum ad valorem; or
if a specific rate or a combination ad valorem and specific rate, the equivalent or 6 per centum ad valorem.
Nothing in this subsection shall prohibit the Legislature of the Virgin Islands from permitting the duty-free importation of any article.
Nothing in this subsection shall be construed as empowering the Legislature of the Virgin Islands to repeal or amend any provision in law in effect on the day before October 15, 1977, which pertains to the customs valuation or customs classification of articles imported into the Virgin Islands.
Source credit: (July 22, 1954, ch. 558, § 8, 68 Stat. 500; Pub. L. 85–851, §§ 2, 3, 10, Aug. 28, 1958, 72 Stat. 1094, 1095; Pub. L. 88–180, Nov. 19, 1963, 77 Stat. 335; Pub. L. 89–643, Oct. 13, 1966, 80 Stat. 890; Pub. L. 90–496, § 15, Aug. 23, 1968, 82 Stat. 842; Pub. L. 95–134, title III, § 301(c), Oct. 15, 1977, 91 Stat. 1163; Pub. L. 97–357, title III, § 305, Oct. 19, 1982, 96 Stat. 1709; Pub. L. 98–454, title II, § 201, Oct. 5, 1984, 98 Stat. 1732; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 106–84, § 1(a), (b)(1), (2), Oct. 28, 1999, 113 Stat. 1295.)
- 1954Enacted · Act of July 22, 1954, ch. 558 · 68 Stat. 500
- 1958Amended · Pub. L. 85-851 · 72 Stat. 1094, 1095
- 1963Amended · Pub. L. 88-180 · 77 Stat. 335
- 1966Amended · Pub. L. 89-643 · 80 Stat. 890
- 1968Amended · Pub. L. 90-496 · 82 Stat. 842
- 1977Amended · Pub. L. 95-134 · 91 Stat. 1163
- 1982Amended · Pub. L. 97-357 · 96 Stat. 1709
- 1984Amended · Pub. L. 98-454 · 98 Stat. 1732
- 1986Amended · Pub. L. 99-514 · 100 Stat. 2095
- 1999Amended · Pub. L. 106-84 · 113 Stat. 1295
A history note hasn’t been published yet. The record shows enactment by ch. 558 on 1954-07-22.
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