Bill to allow taxpayers to offset taxes with government retro payments held for further review after tax office raises concerns

Legislators on April 15 debated a bill that would allow property owners to offset past property‑tax liabilities with amounts the Government of the Virgin Islands owes the owner. Sponsor Senator Milton E. Potter introduced the measure citing household examples in which residents owed property taxes while the government owed them retroactive pay.

What the bill would do: The measure, as introduced, would amend section 24‑94 of Title 33 of the Virgin Islands Code to permit the lieutenant governor to apply “proof of debt” — such as a certified judgment, settlement or other evidence accepted by the lieutenant governor — as a credit against delinquent property taxes owed by the taxpayer. In committee discussion, the sponsor circulated an amendment narrowing the offset to retroactive wages (retro) owed by the government to taxpayers and applying the offset to older tax debts (the amendment language was received during the…