(July 22, 1954, ch. 558, § 8,68 Stat. 500; Pub. L. 85–851, §§ 2,
10,Aug. 28, 1958, 72 Stat. 1094, 1095; Pub. L. 88–180, Nov. 19, 1963, 77 Stat. 335; Pub. L. 89–643, Oct. 13, 1966, 80 Stat. 890; Pub. L. 90–496, § 15,Aug. 23, 1968, 82 Stat. 842; Pub. L. 95–134, title III, § 301(c),Oct. 15, 1977, 91 Stat. 1163; Pub. L. 97–357, title III, § 305,Oct. 19, 1982, 96 Stat. 1709; Pub. L. 98–454, title II, § 201,Oct. 5, 1984, 98 Stat. 1732; Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095; Pub. L. 106–84, § 1(a), (b)(1), (2),Oct. 28, 1999, 113 Stat. 1295.)
References in Text
, referred to in subsec. (b)(iii)(A), which related to interest on certain governmental obligations was amended generally by Pub. L. 99–514
, title XIII, § 1301(a),Oct. 22, 1986, 100 Stat. 2602
, and as so amended relates to interest on State and local bonds. Section
, which prior to the general amendment defined industrial development bond, relates to the applicability of the interest exclusion to arbitrage bonds.
Act of June 22, 1936 (49 Stat. 1807
), referred to in subsec. (c), is act June 22, 1936, ch. 699, 49 Stat. 1807
, as amended, known as the Organic Act of the Virgin Islands of the United States, which is classified generally to subchapter II (§ 1405 et seq.) of chapter
of this title. For complete classification of this Act to the Code, see section
of this title and Tables.
1999—Subsec. (b)(ii)(A). Pub. L. 106–84
, § 1(a), inserted “, including but not limited to notes in anticipation of the collection of taxes or revenues,” after “other evidence of indebtedness”, substituted “for any public purpose authorized by the legislature: Provided, That no such” for “to construct, improve, extend, better, repair, reconstruct, acquire, and equip hospitals, schools, libraries, gymnasia, athletic fields, sewers, sewage-disposal plants, and water systems: Provided, That no public”, and struck out “and payable semiannually. All such bonds shall be sold for not less than the principal amount thereof plus accrued interest” after “specified by the legislature”.
Subsec. (b)(ii)(B), (C). Pub. L. 106–84
, § 1(b)(1), (2), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “The proceeds of the bond issues or other obligations herein authorized shall be expended only for the public improvements set forth in the preceding subparagraph, or for the reduction of the debt created by such bond issue or obligation, unless otherwise authorized by the Congress.”
1986—Subsec. (b)(iii)(E). Pub. L. 99–514
substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.
1984—Subsec. (b)(i), (iii). Pub. L. 98–454
struck out “shall be sold at public sale and” before “may be redeemable” in fourth sentence of par. (i) and added par. (iii).
1982—Subsec. (d). Pub. L. 97–357
struck out subsec. (d) which authorized the President of the United States to appoint a commission of seven persons, at least three of whom were residents of the Virgin Islands, to survey the field of Federal statutes and to make recommendations to Congress within twelve months after July 22, 1954, as to which statutes of the United States not applicable to the Virgin Islands on that date should be made applicable to the Virgin Islands and which statutes of the United States applicable to the Virgin Islands on that date should be declared inapplicable, and provided compensation of this commission.
Subsec. (e). Pub. L. 97–357
struck out subsec. (e) which related to arrangements by the Secretary of the Interior for the preparation of a code of laws of the Virgin Islands.
1977—Subsec. (f). Pub. L. 95–134
added subsec. (f).
1968—Subsec. (b)(i). Pub. L. 90–496
struck out the provisions that the total amount of revenue bonds which may be issued and outstanding for all improvements and undertakings at any one time shall not be in excess of $30,000,000, exclusive of all bonds and undertakings held by the United States as a result of a sale of real or personal property to the government of the Virgin Islands, and with not more than $10,000,000 of such bonds or obligations to be outstanding at any one time for public improvements or public undertakings other than water or power projects, and substituted provisions that the bonds so issued shall bear interest at a rate not to exceed that specified by the legislature, payable semiannually, for provisions that the bonds so issued shall bear interest at a rate not to exceed 5% per annum, payable semiannually, and that all such bonds shall be sold for not less than the principal amount thereof plus accrued interest.
1966—Subsec. (b)(i). Pub. L. 89–643
increased the borrowing authority of the Virgin Islands by striking out limiting provisions so as to require only that the object of a bond issue be a public improvement or undertaking authorized by the legislature as opposed to previous requirement of a legislative authorization for specific improvements and legislative findings of need, substituted provisions authorizing the issuance of bonds that are nonredeemable or redeemable (either with or without premium) for provisions requiring that bonds be redeemable after five years without premium, raised the limitation on total amount of outstanding bonds from a flat limitation of $10,000,000 to $30,000,000 exclusive of all bonds or obligations which are held by the Government of the United States as a result of a sale of real or personal property to the government of the Virgin Islands, and inserted requirement that not to exceed $10,000,000 of the bonds or obligations may be outstanding at any one time for public improvement or public undertakings other than water or power projects.
1963—Subsec. (b). Pub. L. 88–180
redesignated existing provisions as par. (i), struck out “The legislature shall have no power to incur any indebtedness which may be a general obligation of said government”, and added par. (ii).
1958—Subsec. (a). Pub. L. 85–851
, § 2, substituted “rightful subjects of legislation” for “subjects of local application”.
Subsec. (b). Pub. L. 85–851
, § 10, authorized issuance of bonds for establishment, construction, operation, maintenance, reconstruction, improvement, or enlargement of other projects and payment of the bonds from revenues derived from the projects.
Subsec. (e). Pub. L. 85–851
, § 3, struck out “and any supplements to it” after “Upon the enactment of the Virgin Islands Code it”.
Effective Date of 1999 Amendment
Pub. L. 106–84
, § 3,Oct. 28, 1999, 113 Stat. 1295
, provided that:
“(a) In General.—Except as provided by subsection (b), the amendments made by section
[amending this section and section
of this title] shall apply to those instruments of indebtedness issued by the Government of the Virgin Islands after the date of the enactment of this Act [Oct. 28, 1999].
“(b) Effect of Failure To Reach Agreement.—If the agreement authorized in section
[set out as a note under section
of this title] is not ratified by both parties on or before December 31, 1999, the amendments made by section
“(A) shall not apply to instruments of indebtedness issued by the Government of the Virgin Islands on or after December 31, 1999; and
“(B) shall continue to apply to those instruments of indebtedness issued by the Government of the Virgin Islands after the date of the enactment of this Act and before December 31, 1999.”
Effective Date of 1968 Amendment
Section 15 ofPub. L. 90–496
provided that the amendment made by that section is effective on date of enactment of Pub. L. 90–496
, which was approved Aug. 23, 1968.
Pub. L. 106–84
, § 4,Oct. 28, 1999, 113 Stat. 1296
, provided that: “These amendments to the Revised Organic Act of the Virgin Islands [amending this section] are not intended to modify the internal revenue laws. Thus, the bonds authorized by this bill must comply with subsection (c) ofsection
of the Internal Revenue Code of 1986 [26
] (which requires the new bonds comply with the appropriate requirements of the Internal Revenue Code).”
Levying and Collection of Excise Taxes by Legislature of the Virgin Islands
Pub. L. 96–205
, title IV, § 405,Mar. 12, 1980, 94 Stat. 89
, as amended by Pub. L. 97–357
, title III, § 302,Oct. 19, 1982, 96 Stat. 1709
, provided that: “Any excise taxes levied by the Legislature of the Virgin Islands may be levied and collected as the Legislature of the Virgin Islands may direct as soon as the articles, goods, merchandise, and commodities subject to said tax are brought into the Virgin Islands. The officials of the Customs and Postal Services of the United States are directed to assist the appropriate officials of the United States Virgin Islands in the collection of these taxes.”