Understanding USVI property tax issues is an integral part of the purchasing process. Real Estate taxes are billed as they are in other stateside jurisdictions. At closing, tax credits and debits will be pro-rated and reflected on the closing statement for buyer and seller.
Based on a legislative and judicial ruling, the Government of the Virgin Islands is several years behind in billing for real property taxes. For tax years 2010 and thereafter, the real property tax bills will be based on the assessed value of the property multiplied by the applicable millage rate. The millage rates chart is below.
Unimproved Commercial Land 0.0071
As an example, property taxes for a $500,000 home or condo purchase would be taxed based on 0.00377 millage rate and would amount to $1,885.00 in estimated annual property taxes.
All tax credits and prorations shall also include any applicable sewer fees and any applicable exemptions (such as the homestead and veterans exemption) which are expected to be applicable for tax years being adjusted.
The purchaser will receive a credit at closing from the seller for the property taxes which have not yet been billed nor paid by the seller. They will subsequently be responsible for the payment of those taxes when the bills become due.
The seller will pay all property taxes and sewer fees that have been billed and are due prior to closing.
For further information on Property Taxes in St. Croix, contact the Lieutenant Governor’s Office.
1131 King Street, Suite 101, Christiansted, St. Croix 00820, 340-773-6459 OR
No. 1 Lagoon Street Complex, Commercial Bldg. No.1, Frederiksted, St. Croix 00840, 340-772-3115
Or visit the Office of the Tax Assessor at Office of the Tax Assessor.