Virgin Islands Real Estate Trends

Want to be a mermaid? Captain of your own ship?

That's what our tourism campaign is promoting. Hopefully it's working - with so little funds to pay everyday bills - will this improve our tourist economy?

As reported in the Virgin Islands Daily News:

The Virgin Islands is rolling out a summertime promotion to entice families living throughout the Caribbean to spend their summer here.

The Family Fun promotion, which started in May and runs through October, offers airfare rebates, hotel deals - especially for families with children younger than 12 - and attraction and activity coupons.

"The summer months are typically a slower time for the Virgin Islands," said Tourism Department spokeswoman Allegra Kean Moorehead. "It is nice to be able to have various promotions available in the marketplace to keep the islands busy."

The package includes a $50 per person airfare rebate, $50 in attractions and activity coupons, and a third night free at several hotels - where children under 12 also stay for free. Trips must include at least a three-night stay, and trips must be booked by Sept. 30. Travel needs to be completed by Oct. 30. Tourism has done similar Caribbean-targeted promotions in the past.

This promotion, Moorehead said, is gathering a lot of attention because of the airfare rebate.

"It's really attractive," she said. "Right off the bat, they're getting money off of their package. And as soon as they check into their hotel, they're getting $50 back."

The Tourism Department has focused much of its efforts in Puerto Rico. Moorehead said that a rate card featuring the package has been printed for the Tourism Department's representative in Puerto Rico and is being distributed to travel agents. Advertising for the package also has been featured in publications in Puerto Rico.

Word about the promotion is also being spread to other Caribbean islands. Information has been distributed at every Caribbean trade show that Virgin Islands representatives have attended, Moorehead said. Additionally, Caribbean-based travel agents who have gone through the online "Virgin Islands Specialist" program have been provided with information. The "Virgin Islands Specialist" program is an initiative that allows travel agents worldwide to gain a thorough knowledge and understanding of the territory's tourism opportunities, Moorehead said.

St. Croix hotels participating in the promotion include Club St. Croix, Company House Hotel, Divi Carina Bay Resort, Hotel Caravelle, King Christian Hotel, Sand Castle on the Beach, The Buccaneer and The Palms at Pelican Cove. On St. Thomas, visitors staying at Best Western Emerald Beach, Bolongo Bay Beach Club, Point Pleasant Resort, Sapphire Beach Resort & Marina, Secret Harbour Beach Resort, Windward Passage Hotel and Wyndham Sugar Bay Resort & Spa can benefit from the promotion. St. John accommodations participating in the promotion include Concordia Eco-Tents, Maho Bay Camps and Westin St. John Resort & Villas.

I think even Herman Wouk would be astouned by this "much ado about property taxes" issue.

As reported by the Virgin Islands Daily News:

"The government has officially rescinded the 2006 tax bills that were sent to property owners territorywide according to an executive order signed by Gov. John deJongh Jr. on June 30.

The action is part of the ongoing litigation that has kept the government from collecting property taxes for the last three years.

The case has slowly crawled along since September 2008 while the government fought a contempt ruling from District Court Judge Gomez at the 3rd U.S. Circuit Court of Appeals. In mid-June, the 3rd Circuit affirmed Gomez's contempt order, effectively invalidating all the 2006 property tax bills sent out.

The executive order renders the 2006 tax bills null and void, Sara Lezama, spokeswoman for the V.I. Justice Department, said Monday.

The next step in the case will be a hearing before Gomez on Sept. 17, when the government will support its position that the Board of Tax Review, which started up last year, is now functioning as mandated by the court. The board, which hears and rules on property taxation disputes, was inactive for years.

In a year's time, Lezama said, the board has reduced the number of pending appeals from 274 to 41.

"The board is functioning," she said.

The government's troubles with property taxes has been going on for more than a decade.

The territory has been embroiled in litigation with the goal of establishing a fair and equitable property tax system. A group of commercial property owners started the legal battle when they sued the government in District Court, arguing that the government's system of property taxes was unfair and unconstitutional.

The court agreed with the property owners and in 2003 issued an injunction freezing property values at those determined in 1998 - the last year the court deemed the values were fair.

Before the territory can collect property taxes using new values, a judge must determine that the territorial government has met several conditions to improve the taxation system - such as conducting a comprehensive revaluation of all of the territory's properties and resurrecting the Board of Tax Review. A court-appointed special master was put in place to oversee the property revaluation.

Since 2003, the government has been working to accomplish these goals.

Last summer, a series of hearings was held in District Court about whether the V.I. government had met its obligations for the court processes to be over and so property tax bills could be sent out using new values. In August - before Gomez had ruled on any of the matters pending before him - the V.I. government went ahead and sent out property tax bills.

In September, Gomez invalidated the bills and held the V.I. government in contempt of court. The V.I. government appealed Gomez's contempt ruling to the 3rd Circuit. Because the appellate court had postponed the enforcement of the contempt ruling, government officials believed they had permission to send out another round of new bills. The latest round of 2006 property tax bills were sent out in May. "

Just how much can our already strapped resources be squandered in postage? What do you think about this ongoing insanity?