The Committee on Rules and Judiciary on Oct. 23, 2025 approved an amended version of Bill No. 36‑0083 to establish a 90‑day amnesty period for the waiver of penalties and interest on outstanding taxes if taxpayers file required returns and pay outstanding balances during the amnesty window.

The substitute amendment directs the director of the Virgin Islands Bureau of Internal Revenue to establish the 90‑day amnesty within 10 days of the act’s effective date and requires taxpayers to both file returns for the applicable years and pay the full outstanding balance within the 90‑day period to have penalties and interest waived. The amendment also directs publication of the program on the bureau’s website, social media and a newspaper of general circulation. Separately, it authorizes the Lieutenant Governor to waive penalties and interest on outstanding real property taxes for the 90‑day period under the existing statutory authority.

Sponsors said the measure is intended to encourage voluntary compliance and help taxpayers recovering from disasters settle obligations without penalty. During prior committee hearings (Oct. 7), the Bureau of Internal Revenue and other stakeholders told the committee there is substantial outstanding tax debt. In committee discussion on Oct. 23 senators cited previously noted figures: the Property Tax Office reported roughly $120 million in outstanding property taxes and IRB testimony has estimated about $130 million outstanding in income and gross‑receipts taxes. Supporters said the amnesty could accelerate collections and help businesses and residents clear long‑standing balances.

After an amendment in the nature of a substitute was offered and adopted, the committee voted to report the bill favorably to the full Legislature. The clerk recorded four yeas and three absences; the measure will proceed to the full body for consideration.