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U.S. Code as of:
01/19/04
Section 1574. Legislative powers and activities
(a) Scope of authority; limitation on enactments and taxation
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.
(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) 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.
(E) For exclusion of interest for purposes of Federal income
taxation, see section 103 of title 26.
(c) Applicability of laws and ordinances; amendment or repeal
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.
(d), (e) Repealed. Pub. L. 97-357, title III, Sec. 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.
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