H.R. 366: To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.

This bill proposes an amendment to the Internal Revenue Code of 1986 concerning the taxation of fuel produced in the Virgin Islands. Here are the main components of the bill:

Fuel Tax Allocation

The legislation specifically aims to ensure that all taxes collected on fuel that is produced in the Virgin Islands and then shipped to the United States will be redirected to the treasury of the Virgin Islands. This means that rather than these tax revenues going to the federal government, they will be retained in the Virgin Islands to support local governance and services.

Amendment Details

• Section Amended: The amendment will be made to Section 7652 of the Internal Revenue Code.
• New Subsection Added: A new subsection (j) will be added that specifically addresses fuel produced in the Virgin Islands and its shipment to the United States.
• Tax Collection Reference: It specifies that taxes collected under Section 4081(a), which pertains to fuel duties, are the taxes that will be diverted to the local treasury.

Effective Date

The proposed changes will apply to any fuel that is entered into the United States after December 31, 2024. This means that the bill would affect future fuel shipments rather than any that have already taken place.

Purpose of the Bill

The overarching goal of this bill is to enhance the financial resources of the Virgin Islands by allowing the region to benefit directly from the taxes on fuel produced within its jurisdiction. The local government could use these funds for various public services, development projects, and other local needs.

Potential Impact

By retaining these tax revenues, the bill aims to improve the financial autonomy of the Virgin Islands, potentially leading to economic benefits for the territory.

Relevant Companies

• None found.