USVI-On-Line

Exit Zero wrote:Seriously, how 'bad'!! can the news be - $25 p/p if the rental was $10,000 for 4 couples.

I would suppose it's not bad at all -- if you don't have to pay it.

JIM

The Governor has to sign it for it to take effect now.

http://stthomassource.com/content/news/ ... x-increase

Sure, only $25. That is unless you are looking at the big picture.
The tax used to be 8% just 5 years ago. The hotel/room tax would have been $800 for a $10,000 villa bill.
Currently the tax is $1000.
@ 12.5% the tax will be $1250.
To me that adds up to an extra $450 per week or an increase of greater than 56% in just 5 years.
Or you can see it as just $25.
I have to look at the big picture when budgeting for a vacation. $450 is a lot of pain killers I cannot drink. Perhaps it is the day sail I cannot take. Wait, that is more like 2 day sails each for my wife and I. That is more than 4 nice dinners with drinks. That is what my jeep rental will cost for the week.

All very true examples and statistics if you were spending $10,000 for a couple in a villa.
Not a lot of things anywhere that you can still buy at 2009 prices are there?

Exit Zero wrote:All very true examples and statistics if you were spending $10,000 for a couple in a villa.
Not a lot of things anywhere that you can still buy at 2009 prices are there?

Hmmm.....
Gasoline, my house, my property taxes.........
When you talk about tax rates you are not discussing 2010 prices, the tax rate for any taxed item should remain fairly constant and should represent the cost of government to support such an enterprise as hotels and villas with infrastructure and such. When you have a 56% hike in the tax rate, it means that the price of government rises exponentially.
At 8% tax on $100 = $8, @ a 3% inflation rate, and 5 years later the $100 is now $119.41, @ the same 8% tax rate the government collects $9.55 on the same item. Because it is a percent of the sale, the tax collected rises with the price of the item taxed.
The price of the item taxed is expected to rise and so will the amount collected for tax.
Your explanation that you cannot buy much at 2009 prices is exactly why large tax rate hikes are business killers.

Lucky You, I give up !!, I concur !!, the tax increase is drastic and signals the end of tourism as they know it over on STJ. No more from me and I apologize for unintentional discourse.

Although I'm not thrilled that Gallows Point will be tacking on an extra 2.5% to my annual stay there, it is still almost 1/2 less than what the Hyatt just tacked on for our last trip to Aruba for my niece's wedding this past June...... 23+% taxes/surcharges!!!

Guess I'll take a different perspective because it's my vacation. Unfortunately, I only take 1 or 2 weeks a year so I don't care if they jack it up 50%, I'm still going! I work hard for this time and the right to splurge. I understand there's merit and principle involved but I couldn't care less.

Like I said before, if you don't have to pay it, the increase is no big deal. On a $2,000 rental the tax was $200. Now it is going to be $250. That $50 represents one more dive, or the cost of lunch. No, we can't buy anything now at 2009 prices, but we weren't paying 2009 taxes. In 2009 the villa cost $1,500 and we paid $150. Last week the villa cost was $2,000 and we paid $200. The Territory was getting an additional $50 and provided little or no additional service to get it. You are right, Zero. We are not paying 2009 taxes today. It floats up with the other costs. It's just that now it took an artificial step up thanks to the Legislature and Governor. Now he can afford to rent a bigger house at our expense.

JIM

Well if turns out to be a "business killer" then maybe STJ will be like my first visit in 1998.

Governments everywhere just keep getting bigger and bigger while taking more and more. I can't wait to see what the USVI politicians do with the GERS fiasco. (Hint: check out Chicago's pension system.)