U.S. Virgin Islands Property Tax Explained

The U.S. Virgin Islands (USVI) property tax is an annual tax on real estate that funds public services like infrastructure and education. This tax applies to all real property owners. The system is administered by the Office of the Lieutenant Governor’s Division of Real Property Tax and is governed by the Virgin Islands Code. The annual cycle begins with a property assessment and ends with the owner’s payment, ensuring property owners contribute to the islands’ upkeep and development.

Calculating Your Property Tax Bill

The basis of your property tax bill is the official valuation of your property, a process handled by the Tax Assessor’s Division. As mandated by the Virgin Islands Code, all real property must be assessed at 100 percent of its fair market value. This value represents the price the property would likely command in an open and competitive market between a willing buyer and a willing seller.

To determine fair market value, assessors use standard appraisal methods, including analyzing recent sales of comparable properties, calculating replacement costs, and evaluating income potential. Assessors also conduct physical inspections to gather data on specific characteristics that influence value, such as the property’s location, size, quality of construction, and overall condition.

Once the assessed value is established, the final tax liability is determined by applying a millage rate set by the government. A “mill” represents one dollar of tax for every $1,000 of assessed value. The rates vary based on the property’s classification:

• Residential property at a rate of .003770
• Commercial property at a rate of .007110
• Timeshare property at a rate of .014070
• Unimproved non-commercial real property at a rate of .004946

The calculation is the assessed value multiplied by the applicable millage rate to arrive at the total tax due. For example, a residential property assessed at a fair market value of $400,000 would have an annual property tax of $1,508 ($400,000 x .003770).

Available Tax Exemptions and Credits

Property owners in the U.S. Virgin Islands may be eligible for several tax credits to reduce their annual property tax burden. The most common is the General Homestead credit, which provides a maximum credit of $400. To qualify, the property owner must occupy the home as their primary residence as of January 1st of the applicable tax year. An owner can claim a maximum of two credits: the General Homestead credit plus one other for which they are eligible.

Veterans of the U.S. Armed Forces who have been honorably discharged are entitled to a tax credit of up to $650. Eligibility requires the veteran to meet the primary residency requirement for their homestead. Veterans with a service-connected, permanent, and total disability are completely exempt from property taxes on their homestead. The widowed spouse of a qualifying veteran may also be eligible for these benefits.

Additional credits are available for senior citizens and individuals with disabilities, both offering a maximum of $500. To qualify for the senior credit, a property owner must be at least 60 years old on January 1st of the tax year. For the disability credit, the owner must have a qualifying disability as determined by the Social Security Administration. Both credits are subject to income limitations: the applicant’s individual annual gross income must be less than $30,000, and the total household gross income cannot exceed $50,000.

To receive these benefits, owners must file an application with the Office of the Tax Assessor. Application forms are available online at ltg.gov.vi and at Tax Assessor offices. Applicants must provide documentation, which varies by credit:

• General Homestead: Proof of residency, such as a USVI driver’s license, and proof of occupancy, like a recent utility bill.
• Veterans: DD-214 discharge form.
• Seniors: Proof of age.
• Disability: Documentation from the Social Security Administration.

The Property Tax Payment Process

The Office of the Lieutenant Governor issues annual property tax bills to property owners. These bills detail the assessed value, millage rate, any exemptions or credits, and the total amount of tax due. It is the owner’s responsibility to ensure their mailing address is current with the Tax Assessor’s office to guarantee receipt.

Payment due dates are clearly stated on the tax bill. Property owners are given a specific period to make their payment without incurring penalties. Payments made after the deadline are subject to interest and other fees.

Several methods are available for submitting property tax payments. Payments can be made online through the official government portal at propertytax.vi.gov, which requires the invoice and control numbers from the tax bill. Taxpayers can also mail a check or money order to the Office of the Tax Collector or make in-person payments at designated government offices on St. Thomas, St. Croix, and St. John.

Consequences of Non-Payment

Failure to pay property taxes by the established deadline results in financial penalties. The government charges interest on the outstanding balance, and additional fees for delinquency may also be applied. Payments received for delinquent accounts are applied first to penalties and accrued interest before reducing the original tax amount.

If taxes remain unpaid, the government has the authority to place a tax lien on the property. A tax lien is a legal claim against the property for the amount of the unpaid taxes, interest, and costs. This lien takes priority over most other liens on the property and can negatively affect the owner’s ability to sell or refinance.

The most severe consequence of non-payment is the potential loss of the property through a tax sale. Under VI Code Section 2541, the Lieutenant Governor can authorize the sale of property to satisfy delinquent taxes. The government must provide written notice to the owner and publish a list of delinquent properties before scheduling a public auction. If the owner does not pay the full amount owed, the property can be sold to the highest bidder to cover the tax debt.