§ 1574.
Legislative powers and activities
(a)
Scope of authority; limitation on enactments and taxation
(b)
Government bonds; maximum amount; sale, interest, etc.
(i)
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.
(ii)
(A)
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.
(B)
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.
(iii)
(A)
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
See References in Text note below.
of title 26).
(B)
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.
(C)
Any obligation issued under subparagraph (A) shall not be exempt from State or local gift, estate, inheritance, legacy, succession, or other wealth transfer taxes.
(D)
For purposes of this paragraph—
(I)
The term “State” includes the District of Columbia.
(II)
The taxes imposed by counties, municipalities, or any territory, dependency, or possession of the United States shall be treated as local taxes.
(c)
Applicability of laws and ordinances; amendment or repeal
(d)
, (e) Repealed. [Pub. L. 97–357, title III, § 305], Oct. 19, 1982, [96 Stat. 1709]
(f)
Customs duty; duty-free importation; effect on other customs laws
(1)
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—
(A)
if an ad valorem rate, 6 per centum ad valorem; or
(B)
if a specific rate or a combination ad valorem and specific rate, the equivalent or 6 per centum ad valorem.
(2)
Nothing in this subsection shall prohibit the Legislature of the Virgin Islands from permitting the duty-free importation of any article.
(3)
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.
([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].)