Chamber Board Opposes Gross Receipts Tax Increase

NEWS RELEASE
JUNE 21, 2011
 
ST. CROIX CHAMBER OPPOSES ANY ADDITIONAL INCREASE IN GROSS RECEIPTS TAXES
 
The Board of Directors of the St. Croix Chamber of Commerce voted at its monthly meeting today to oppose any additional increase in gross receipts taxes at this time.

In addition to the 12.5 percent increase in the gross receipt tax that took effect in May, local businesses have been forced to shoulder a recent 23 percent increase in the Levelized Energy Adjustment Charge (LEAC), which will skyrocket another 10 percent on July 1, the board stated.
Noting that six local restaurants have already closed their doors in recent weeks, the board warned that any additional increase in the gross receipts tax will potentially force other businesses to send employees home, curtail hours and even close their doors.
The board called for increased enforcement efforts to collect taxes from those businesses flourishing in the underground economy that are not paying gross receipts taxes.

It also expressed serious concern that local businesses are at a competitive disadvantage to businesses outside of the Territory that are selling their products inside the Territory at lower prices because they are not subject to the existing 4.5 percent gross receipt tax.
To help close that loophole as well as achieve greater parity for both businesses and consumers alike, the board voted to support efforts to ultimately replace the exiting gross receipt tax with a point-of-purchase sales tax.
In addition to further burdening struggling local businesses, the board said that increasing the existing gross receipt tax also will undermine efforts to recruit new businesses and new jobs to the island as well as discourage rather than encourage local entrepreneurs to take the risk of opening a business due to the prohibitive cost of doing business in the Territory.
#