Detailed Description of Real Property System

The duties of the Tax Assessor are described in Title 33, chapter 85, Section 2402 (a) thru (d) of the Virgin Islands code. The Tax Assessor does not dictate values. The actual value is determined from the market. This is the amount that your property may bring on the open market between a willing buyer who is fully informed of all the advantages and disadvantages of your property and as a willing seller is fully informed and under no duress to sell would accept.

What the Tax Assessor does is to interpret said data by analyzing real estate transactions, comparing conditions of similar properties, which were sold, and by analyzing the cost to replace a similar property. The different approaches utilized are explained below:

Cost Approach: This approach estimates current cost of replacement less accrued depreciation.

Income Approach: This is used on commercial real property used primarily for income producing capabilities.

Sales Comparison Approach: Under this approach property is compared to recent sales of similar properties on the open market.

In addition to analyzing the market data, appraisers from the Tax Assessor's offices physically visit your property to determine the following:

Building Appraisers
1. Condition of property
2. Size of improvement
3. Number of floors
4. Number of bathrooms
5. Size of cistern, porch, terrace, swimming pool, paved areas & fencing
6. Age and location of property
7. Type of construction
8. Property use
9. Number of units

Land Appraiser
1. Location & surroundings
2. Topography
3. Fertility of soil
4. Acreage
5. Shape of lot
6. Accessibility

The data gathered and the analysis of all the related approaches are then correlated to determine the actual value of real property.

After the actual value of the property is determined, it is then multiplied by a tax rate of 1.25% of sixty (60) percent of that value which results in a tax amount. (Title 33, Chapter 81, Section 2301 Amended)

Real property tax bills are issued to the person whose name appear as owner of real property on the records of the Recorder of Deeds on the last day of the tax year which is January 15, of each year. (Title 33, Chapter 85, Section 2410).

Taxpayers may reduce their amount of tax by qualifying for one of the several exemptions that are available to property owners. These exemptions are as follows:

Homestead Exemption: Title 33, Chapter 81, Section 2305, an amount of $250.00 is deducted from the total amount of tax of those taxpayers owning and occupying real property.

Veteran Exemption: Title 33, Chapter 81, Section 2305, an amount of $312.50 is deducted from the total amount of tax of any honorably discharged veteran of the United States Armed Forces who owns and occupies real property in the Virgin Islands.

Elderly Exemption: Title 33, Chapter 81, Section 2305, the amount of $375.00 may be deducted from the total amount of tax of persons sixty (60) years and older with an annual gross income no more than $10,500.00

Disabled Persons Exemption: For disabled persons who own and occupied their homes as a primary residence. This exemption is granted regardless of age and disability, provided individual income is no more than $20,000 and total household income does not exceed $40,000.  Proof of disability and proof of income are required.  Maximum exemption: $250.  Property owners may qualify for this exemption in addition to the General Homestead, Veterans' or Elderly Exemptions.

Additional Senior Exemption: Persons who are age 65 and older, and whose individual income is no more than $20,000 and total household income does not exceed $40,000.  Proof of age and proof of income are required.  Maximum exemption: $250.  Property owners may qualify for this exemption in addition to the General Homestead or Veterans Exemption.

Interested persons must submit applications to their respective Tax Assessor's Office on St. Croix, St. Thomas or St. John no later than April 30, of each year. For Additional information, call the Office of the Lieutenant Governor, Division of the Tax Assessor, at 773-6459 in Christiansted; 772-3115 in Frederiksted; 776-8505 on St. Thomas; or 776-6737 on St. John.

To qualify for any of the above exemptions the property owner must be living in the home as their primary residence as of January 15.

Farmland Exemption: Title 33, Chapter 81, Section 2341 thru 2350, an amount equal to 95% of the real property tax may be deducted from the tax of any taxpayer on property used actively and solely for agricultural and horticultural purposes.
The property should be located within an area on which agriculture is permitted according to zoning laws.

Industrial Incentive Exemption (IDC): Title 29, Chapter 12, Section 713(a) subsection (a) an amount of 100 percent (100%) may be deducted from tax bill of any business owning real property in the Virgin Islands and has received a certificate of exemption from the Virgin Islands Economic Development Commission.

Non-Profit Organization Exemption: Title 33, Chapter 81, Section 2355 (a) thru 2355 (f) an amount equal to the total amount of real property taxes may be deducted from the bill of any real property owned or held in trust for any non-profit organization. Such property is available to the general public for recreational uses, educational or scientific purposes, historic site or museum location or held for purposes such as preserving open spaces, greenbelt areas, buffer zones or natural preserves.

Other properties subject to exemption according to Title 33, Chapter 81, Section 2304, includes:

1. Properties of the United States Government
2. Properties of the U.S. Virgin Islands Government
3. Properties used exclusively for religious worship
4. All Cemeteries

Once all the applicable exemptions are granted the end result is the
Amount due that should be paid to the Virgin Islands government. Properties that are connected to the public sewer system must pay an annual sewer user's fee. Said fee is a part of your annual tax bill and is regulated by the Department of Public Works. (Title 19, Section 1534 Virgin Islands Code.

By Law, Tax bills are issued on or before June 30th of each year. Tax bills are mailed to the last known mailing address available to the Tax Assessor's Office. It is the responsibility of the property owner to notify the Tax Assessor of their correct mailing address. In the event property owners do not receive their tax bill, it is their duty to report the same to the Tax Assessor. (Title 33, Chapter 85, Section 2411)

The Tax is payable at the Department of Finance and becomes delinquent if not paid within sixty (60) days of issue. If taxes are paid after August 31st , they become delinquent, then one and a half percent (1.50%) is added per month to the amount of tax that is due.

Administrative Review Process: What to do if you are not satisfy with your Assessment?
When property owners receive their tax bill please review the contents. If you are dissatisfied with the assessment, do not hesitate to first contact your respective Tax Assessor Office. An administrative review will be granted until due date to pay which is normally August 31st of each year. After that date you must file a formal appeal with the Board of Tax review on or before September 15th of each year.