2019 US Virgin Islands Code
Title 33 - Taxation and Finance
Subtitle 2 - Property Taxes
Chapter 81 - General Provisions; Rate of Tax
Subchapter I - Rate of Tax and Exemptions
§ 2305. Homestead exemption

(a) For the purposes of this section a homestead shall constitute the abode including land and buildings, owned by, and actually occupied by, the property owner, or by members occupied by, a person, or by members of the property owner's family free of rental charges. Rental of any portion of the homestead for any purpose shall not adversely affect the homestead protection provided for in subsection (b) of this section.

(b) The tax credits set forth in paragraphs (1) through (4) are granted to eligible real property owners on real property taxes levied against their homesteads. The tax credits are exclusive, not cumulative, and with the exception of the Homestead Exemption, whereby individuals may have one additional tax credit to the homestead tax credit for each tax year, a property owner eligible for more than one of the following tax credits must elect a single tax credit for each tax year. The Tax Assessor shall provide:

• (1) A tax credit of $400 to property owners and their spouses who reside in the homestead;

• (2) A tax credit of $650 to property owners who are veterans or the widowed spouse of a veteran of the Armed Services of the United States of America.

  • (A) For purposes of this paragraph, “veterans of the Armed Services of the United States” means those persons who were in the active service as determined by the Veterans Administration, and received a discharge from service other than a dishonorable discharge.

  • (B) Notwithstanding the tax credit benefits granted in this subsection, any veteran of the Armed Services of the United States of America who has a service-related disability that has been determined by the Veterans Administration to entitle the veteran to receive compensation for permanent and total disability is exempt from the payment of all real property taxes levied by the Tax Assessor against the disabled veteran's homestead.

• (3) A tax credit of $500 to property owners who are 60 years of age or older on January 1 of the applicable taxable year.

  • (A) For properties held by tenants by the entireties, if either spouse is 60 years or older on January 1 of the applicable tax year, the property owners are entitled to claim the tax credit.

  • (B) The tax credit under this paragraph is available only when the property owner claiming the credit has an individual annual gross income of less than $30,000, and the annual gross income of the household is less than $50,000.

• (4)

  • (A) A tax credit in the amount of $500 to property owners who have been found to suffer from a disability, as determined by the Social Security Administration, on January 1 of the applicable taxable year.

  • (B) The tax credit under subparagraph (A) is available only when the property owner claiming the credit has an individual annual, gross income of less than $30,000, and the annual gross income of the household is less than $50,000.

• (5) [Repealed.]

(c) A person desirous of establishing a homestead tax credit as provided for in this section shall execute an affidavit in such manner and form prescribed by the Lieutenant Governor. The affidavit shall be sworn to before a notary public or such personnel of the Office of the Tax Assessor as may be authorized for such purpose by the Lieutenant Governor. In such latter case notarial service for the purposes of this section shall be furnished free of cost to the deponent.

(d) The homestead protection and tax credit provided in this section shall continue to attach to the property after the death of the owner thereof, and shall inure to the favor of the surviving spouse while the latter continues to occupy the said homestead, and after the death of both spouses, to the favor of their children until the youngest surviving of these shall have attained majority. In case either spouse shall abandon the home, the homestead protection and tax credit shall continue in favor of the spouse who occupies the property as a dwelling; and in the case of a divorce, the court which grants it shall make disposition of the homestead in accordance with the equity of the case.

(e) In the case of an unmarried person, the homestead protection and tax credit shall continue to attach to the property after his death, and inure to the benefit of his ascendants and descendants to the fourth degree, his foster parents and adoptive, illegitimate or foster children who may reside with them, while the latter continues to occupy the said homestead and until the youngest surviving of the said persons shall have attained majority.

(f) The tax credit granted in this section shall take effect during the taxable year corresponding to the date of assessment following the date on which the application was filed, except as provided in subsection (g) of this section. The tax credit granted in this section shall cease when the conditions and requirements prescribed in this section cease to exist and said property shall be subject to the imposition of real property taxes during the taxable year corresponding to the date of assessment following the date on which the necessary conditions and requirements for the enjoyment of said tax credit shall have ceased to exist.

(g) The homestead protection and tax credit granted by this section shall apply for the taxable year 1961 to otherwise eligible properties the owners of which file the affidavits provided for in subsection (c) of this section, on or before August 15, 1962.

(h) Whoever, with intent to obtain any benefits of the provisions of this section, knowingly and wilfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statement or representation, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, or conceals property belonging to him, or by fraudulent conveyance, sale, assignment or alienation disposes of the same, in order to make himself entitled to the benefits of this section, is subject to the fines and terms of imprisonment set forth in title 14 Virgin Islands Code, chapter 41 section 843.

(i) The provisions of this section shall not apply to property acquired on a conditional sale contract or on installments, or on lease with a right to title, until the title has become effective by the total liquidation of the obligation; nor to sales, conveyances, transfers or alienations made for the purpose of evading the payment of real property taxes.

(j) The Lieutenant Governor is hereby authorized to prescribe necessary rules and regulations to implement this section and paragraph (5) of section 2304 of this title, which rules and regulations upon approval of the Governor, shall have the force and effect of law.

(k) The Lieutenant Governor shall publish in the local newspapers during the month of January of each year an announcement in regard to the provisions of this section and paragraph (5) of section 2304 of this title.