Residents of the U.S. Virgin Islands who sell personal property currently face a quirk in the tax code that can result in their income being taxed differently than residents of other U.S. territories like Guam or American Samoa. This bill makes a small but meaningful technical fix by extending the same tax source rules that apply to those other territories to the Virgin Islands. It would apply retroactively to tax years beginning after December 31, 2023.
Congressional Summary
This bill authorizes the Internal Revenue Service (IRS) to limit the income tax payment to the Virgin Islands required to treat income from the sale of certain personal property as foreign-sourced income for federal tax purposes.As background, income from certain personal property sales from a fixed place of business in a U.S. territory by a U.S. resident may be U.S.-sourced income unless an income tax of at least 10% is paid to the U.S. territory. Under current law, the IRS may limit the 10% tax payment requirement related to income from such personal property sales in Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico.This bill expands the IRS’s authority to include limiting the tax requirement for personal property sales in the Virgin Islands.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-01-13
- Date Added
- 2026-04-09
- Source
- Congress.gov →
Like reading a bill in plain English?
We're building an app that does this for every bill in Congress and lets you tell your reps how you want them to vote. We're a small team getting ready to launch, and we're trying to show investors that real people want this. Be one of them. Help us get it built. Leave your email and we'll tell you the moment the app is ready.