Mr. Speaker, I yield myself such time as I may consume. (Mrs. CHRISTENSEN asked and was given permission to revise and extend her remarks.) Mr. Speaker, I rise in strong support of S. 1829, companion…
Mr. Speaker, I yield myself such time as I may consume.
(Mrs. CHRISTENSEN asked and was given permission to revise and extend her remarks.)
Mr. Speaker, I rise in strong support of S. 1829, companion legislation to one I introduced to repeal an outdated 1936 Federal statute which limits the authority of the Virgin Islands government to assess and collect real property taxes in the territory. I will note that the Senate approved this measure as a stand-alone piece of legislation, but certain extraneous matters such as titles 1, 2, and 4 have been added to this bill by the Republican leadership which will require it to be reconsidered by the Senate.
Mr. Speaker, it is crucial that we pass S. 1829, now title III, and have it enacted into law before we adjourn for the year to prevent some of my constituents from facing the very real risk of losing their homes because the Virgin Islands government would not be able to provide them protections from the sky-high property tax bills because of the 1936 statute.
That statute was enacted to address the tax policies of the Danish era in the Virgin Islands. It was generally thought to have been repealed by the enactment of the Revised Organic Act of 1954, which created a comprehensive system within the local government with sufficient legislative powers to resolve local property tax issues without the need of Federal intervention.
S. 1829 and H.R. 59, which I introduced in the House, became necessary because 2 years ago the Third Circuit Federal Court of Appeals revived the 1936 statute, which requires that all real property be taxed at the same rate without regard to classification or use.
This decision, among other things, struck down a local statute capping the amount of any increase in the assessment of residential real property and, therefore, any increase in the property tax owed in any assessment period. It also prevents any exemptions for veterans and other groups who ought to have such a benefit.
If the 1936 law is not now repealed by Congress, it will hinder the exercise of the Virgin Islands government as conferred by the Revised Organic Act to assess, administer, and collect real property taxes in the Virgin Islands. Indeed, the 1936 statute puts at risk longstanding government policies designed to develop the economy, promote social welfare, and protect home ownership in the Virgin Islands. Without the authority to limit such increases by capping such assessments or similar methods commonly used by other jurisdictions, the now revived 1936 statute may have the anomalous result of pricing land and home ownership beyond the reach of many Virgin Islanders. It has long outlived its usefulness and now interferes with the Virgin Islands' ability to perform an essential government function.
The assessment and collection of real property taxes is fundamentally a local government issue with no Federal impact. No other State, territorial or local government is subject to such Federal restrictions.
Mr. Speaker, I would be remiss if I didn't point out my deep disappointment of the fact that we are not voting on S. 1829 as a stand-alone bill. By including additional items in the bill, it becomes possible that the repeal of the 1936 statute could not become law before Congress adjourns because of procedural complications in the other body. I hope that is not the case, because it would be extremely lamentable if, because of that result, many of my constituents would receive very high tax bills this coming January and there would be no way that they could afford to pay, and that could in fact mean the loss of their homes. So I am calling on my colleagues, whose bills were added to this otherwise simple but very significant measure, and the leadership to work with me in the remaining day or days of this Congress to save the American dream for their fellow Americans living in the Virgin Islands who have, alongside citizens from all of the other districts, served this country at every level, even to the ultimate sacrifice in every war this country has fought.
Mr. Speaker, I yield back the balance of my time.
General Leave