[Congressional Record (Bound Edition), Volume 153 (2007), Part 1]
[House]
[Page 1459]
[From the U.S. Government Publishing Office, www.gpo.gov]




        REPEALING CERTAIN LAWS PERTAINING TO THE VIRGIN ISLANDS

  Mrs. CHRISTENSEN. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 57) to repeal certain sections of the Act of May 26, 
1936, pertaining to the Virgin Islands.
  The Clerk read as follows:

                                H.R. 57

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. REPEAL OF CERTAIN LAWS PERTAINING TO THE VIRGIN 
                   ISLANDS.

       (a) Repeal.--Sections 1 through 6 of the Act of May 26, 
     1936, (Chapter 450; 49 Stat. 1372-1373; 48 U.S.C. 1401-1401e) 
     are repealed.
       (b) Effective Date.--This section shall be deemed to have 
     taken effect on July 22, 1954.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
the Virgin Islands (Mrs. Christensen) and the gentleman from Puerto 
Rico (Mr. Fortuno) each will control 20 minutes.
  The Chair recognizes the gentlewoman from the Virgin Islands.


                             General Leave

  Mrs. CHRISTENSEN. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days to revise and extend their remarks 
and include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from the Virgin Islands?
  There was no objection.
  Mrs. CHRISTENSEN. Mr. Speaker, I rise in strong support of H.R. 57, 
legislation to repeal an outdated Federal law which limits the 
authority of the Virgin Islands to assess and collect property taxes. 
Both the U.S. Senate and the House passed identical legislation in the 
waning hours of the last Congress but ran out of time before completing 
the process.
  Mr. Speaker, it remains critical that we pass this bill and have it 
enacted into law as soon as possible in order to prevent some of my 
constituents from facing the very real risk of losing their homes 
because the Virgin Islands Government could not provide them 
protections from sky-high property tax bills because of that 1936 
statute. It was enacted to address the tax policies of the Danish era 
in the Virgin Islands. It was generally thought to have been repealed 
by the enactment of the Revised Organic Act of 1954, which created a 
comprehensive system of local government with sufficient legislative 
powers to resolve local property tax issues without the need for 
Federal intervention.
  The bill before us became necessary because 3 years ago the Third 
Circuit Court of Appeals revived the 1936 statute and struck down a 
local statute capping the amount of any increase in the assessment of 
residential real property and, therefore, any increase in the property 
tax owed in any assessment period.
  If the 1936 law is not now repealed by the Congress, the government 
of the Virgin Islands will not have the authority to limit such 
increases by capping assessments or similar methods commonly used by 
other jurisdictions. Indeed, the revived 1936 statute may have the 
anomalous result of pricing land and homeownership beyond the reach of 
many Virgin Islanders. That statute has long outlived its usefulness 
and now interferes with the Virgin Islands' ability to perform an 
essential governmental function.
  The assessment and collection of real property taxes is fundamentally 
a local government issue with no Federal impact. No other State, 
territorial, or local government is subject to such Federal 
restrictions. The Revised Organic Act of 1954, as amended, confers upon 
the people of the Virgin Islands full powers of self-government; the 
1936 statute is an anachronism that needs to be repealed.
  Mr. Speaker, I want to take this opportunity to thank my colleague, 
the Resident Commissioner from Puerto Rico (Mr. Fortuno), for his 
support, and to thank Chairman Rahall and Ranking Member Young for 
helping us to bring this bill to the floor so quickly.
  Mr. Speaker, I reserve the balance of my time.
  Mr. FORTUNO. Mr. Speaker, I strongly support passage of H.R. 57, 
sponsored by my colleague and friend representing the U.S. Virgin 
Islands (Mrs. Christensen).
  From our perspective, it is noncontroversial legislation. It allows 
the local government of the Virgin Islands to set their own property 
taxes. This is consistent with the philosophical stand of the 
Republicans who believe in letting local governments create their own 
laws without Federal intervention.
  Without this bill, the Virgin Islands would be forced to adhere to an 
outdated and unworkable Federal Property Tax Code. I urge my colleagues 
to correct the problem.
  I also want to take this moment and congratulate my colleague 
Congresswoman Christensen not only for seeing H.R. 57 pass today, but 
for her pending rise to the chairmanship of the Insular Affairs 
Subcommittee. I look forward to serving as the subcommittee's ranking 
member and addressing the many issues facing the U.S. territories and 
possessions.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. CHRISTENSEN. Mr. Speaker, I just want to respond that I look 
forward to working with Mr. Fortuno once we organize the committee as 
well.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in support of 
H.R. 57, to repeal certain provisions of the Federal law passed 70 
years ago limiting the Virgin Islands' authority to assess and collect 
its property taxes. I thank the Delegate from the Virgin Islands, Mrs. 
Christensen, for bringing this legislation to the attention of the 
House.
  This outdated law, enacted in 1936, results in the imposition of high 
property taxes that could cause many residents of the Virgin Islands to 
lose their homes. The local government does not have the capacity to 
protect them from these federally imposed taxes, nor should it have to. 
The policies which the statute was originally designed to address are 
no longer an issue; it is now entirely unnecessary.
  In fact, the Revised Organic Act of 1954, which was enacted to grant 
the government of the Virgin Islands the power to assess, administer 
and collect real property taxes, was thought to have repealed the 
statute. However, the 1936 statute remained in effect, putting at risk 
our long-standing policies to support and protect economic development, 
social welfare, and homeownership in the Virgin Islands. No other State 
or territory in the United States is subject to such Federal 
restrictions.
  I look forward to seeing H.R. 57 passed to provide relief to the good 
people of the Virgin Islands from this outdated law. I ask my 
colleagues to join me in supporting this important legislation.
  Mrs. CHRISTENSEN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from the Virgin Islands (Mrs. Christensen) that the House 
suspend the rules and pass the bill, H.R. 57.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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