The U.S. Department of the Interior’s Office of Insular Affairs announced today the release of $338 million to Guam and the U.S. Virgin Islands.
The payment includes $65.1 million to Guam for federal income tax advance payments under Section 30 of the Organic Act of Guam for fiscal year 2021 and $272.9 million to the USVI in rum tax cover-over payments for estimated FY 2021 rum tax collections in the territory.
“The Office of Insular Affairs works closely with the Internal Revenue Service to ensure quick and smooth transfer of these taxes back to the USVI and Guam once available,” said U.S. Department of the Interior Assistant Secretary Douglas W. Domenech. “Secretary Bernhardt and I appreciate that these funds will be critical to Guam and the U.S. Virgin Islands as they work to manage health and economic impacts of the coronavirus pandemic in the territories.”
Under the Revised Organic Act of the Virgin Islands, any excise tax collected on USVI manufactured rum imported into the mainland United States is transferred to or “covered-over” to the USVI.
The USVI government submits an advance estimate of rum excise taxes to the Department of the Interior’s Office of Insular A