Our stunning listing, Meggie Hill, is on the cover of the 2019 Coldwell Banker St. Croix Realty Magazine. Even if you’re not in the market for real estate, you’ll enjoy flipping through the pages of the 154-page publication showcasing Coldwell Banker listed homes and property for sale on St. Croix.
Do you ever wonder what’s happening with all of those househunter TV show couples now? Well, I stopped by to say hello to Kyle and Ania this week to see how their “Beachfront Bargain Hunt” house is coming along. Watch what they’ve been up to and check out their incredible view.
As you can tell, they’ve been very busy with some major renovations that will turn their investment into their dream island home. From raised ceilings to an expansive pool deck, this is a big undertaking that will be well worth it when they get to relax poolside with their family. And it’s no surprise that their neighbors are welcoming them into the neighborhood. That’s St. Croix!
The St. Croix Source offered a good reminder to homeowners with vacation rentals at the start of the new year in their local news piece: V.I. Answer Desk: Is USVI Collecting Tax on Villas and AirBnB Rentals? If you own a vacation rental or if you’re looking to buy property with a vacation rental, the first step in legally renting a vacation property, whether it be a room, studio, apartment, villa or house, is to get a business license.
And owners must pay hotel occupancy tax, income tax and gross receipts tax as required by law. Hotels, villas, timeshare owners and anyone else renting any lodging for a period of less than 90 days, must pay 12.5 percent of the price of the room rental.
You can find the appropriate tax forms on the Virgin Islands Bureau of Internal Revenue web site. According to Form 722 VI, the return should be filed monthly and tax due should be paid within 30 days.
The article says that the rise in vacation rentals on web sites like Airbnb and VRBO has likely meant that the USVI is missing out on millions of dollars in revenue. As a territory where our main industry is tourism, it is vital to our economy that the appropriate taxes be paid by homeowners. In recent years, the Internal Revenue Bureau has begun enforcing increased penalties, which seems to have been effective as revenues and the number of taxpayers have gone up slightly.
Collections and the number of entities paying hotel occupancy taxes have increased steadily. According to the Office of Management and Budget, in 2012, the government received $20.9 million in hotel occupancy tax revenue from some 818 taxpayers. In 2013, revenues went up a tiny bit, to $21.5 million, and the number of taxpayers/property owners increased by 41 to 859. There was a larger increase in 2014, with $22.9 million in revenue and 81 more taxpayers. And 2015 saw 73 more taxpayers, generating $24.6 million.
The VI Internal Revenue Bureau met with Airbnb officials at the end of 2016 to discuss a model for getting information on VI-based vacation rentals to further their collection efforts.