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 Front Cover
 Table of Contents
 Letter of transmittal
 Summary
 Scope
 Main
 Appendix














Group Title: Annual report, Office of the Government Secretary, United States Virgin Islands
Title: Report.
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Title: Report.
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Creator: Virgin Islands of the United States. Office of the Government Secretary.
Publication Date: 1965-1966
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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Table of Contents
        Page 1
        Page 2
    Letter of transmittal
        Page 3
        Page 4
    Summary
        Page 5
        Page 6
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        Page 8
        Page 9
    Scope
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        Page 11
    Main
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    Appendix
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Full Text
v


ANNUAL REPORT

OFFICE OF THE
GOVERNMENT SECRETARY
FISCAL YEAR 1966







CYRIL E. KING
GOVERNMENT SECRETARY





.351. /2a72

















UNIVERSITY

OF FLORIDA

LIBRARIES


I I _









STABLE OF CONTENTS


Page

SLetter of Transmittal .......................... 3

Sum mary Report .............................. 5

S Scope......................................... 10

Administration

Corporations .............................. 12
Licenses........... .................... . 15
Trade Nam es ............................. 17
Insurance ............................... 17
Board of Control of Alcoholic Beverages ..... 21
Passports ................................ 25
Trademarks and Patents .................... 28
Notaries Public ........................... 29
SMinisterial Licenses ....................... 33
Legislation ............................... 33
Banking Board of the Virgin Islands .......... 34
Sanitary Facilities ............. ............ 39

Recorder of Deeds ............................. 40

< St. Thom as ................................ 41
St. Croix ................................. 44

Uniform Commercial Code ..................... 47

Office of the Tax Assessor ...................... 48

M miscellaneous ................................ 58

Appendix A .................................. 59

Appendix B .................................. 86

Appendix C .................................... 90













GOVERNMENT OF
THE VIRGIN ISLANDS OF THE UNITED STATES

Office of the Government Secretary
Charlotte Amalie, St. Thomas 00801

August 19, 1966








Honorable Ralph M. Paiewonsky
Governor of the Virgin Islands
Charlotte Amalie, St. Thomas
Virgin Islands of the United States

Dear Governor Paiewonsky:

In accordance with your memorandum of
June 13, 1966, transmitted herewith is the
Annual Report of the Office of the Government
Secretary for the Fiscal Year 1966.

Sincerely,



Cyril E. King
Government Secretary











Summary Report
Office of the Government Secretary
Fiscal Year 1966


The impact of the economic progress as well as

of the cultural and social development in the Virgin

Islands is reflected in the continuing increase during

fiscal year 1966 in the activities of the vital and varied

functions assigned to the Office of the Government

Secretary by the Organic Act and The Virgin Islands

Code.

The scope of the duties and responsibilities of

the Government Secretary encompasses practically

every phase of business activity in the community --

corporations, licensing, banking, real property assess-

ment and taxation, insurance, recording of documents,

passports, trademarks and patents, alcohol control --

thus providing an especially good and reliable vantage

point from which to measure with some accuracy the

economic trends and development of the Virgin Islands.

Increased activity was experienced in all of the fore-












going areas.

The expiration of the provisions of Act No. 909,

approved June 18, 1962, marked the termination of

a five-year legislatively imposed moratorium on any

effective implementation of the reassessment program.

As a result, substantial progress was made in updating

and otherwise restoring the soundness, equity, and

effectiveness which were originally built into the system

in 1961 at an appreciable cost in terms of money and

man-hours.

The fiscal year also witnessed the passage of

legislation which increased homestead exemptions

from $3, 000 to $5, 000 and removal of the Board of Tax

Review from under the jurisdiction of the Office of the

Government Secretary to that of the Department of

Property and Procurement.

Concrete steps were taken during the fiscal year to

provide the tools to enable this office to work more












effectively to alleviate the problems with which it has

been faced as reported in previous annual reports and

which result from limitations imposed on its operations

by the urgent need for revision and/or amendment of

existing laws governing the activities of the office. As

of the end of the fiscal year contracts had been finalized

and Equity Publishing Corporation had begun work on

drafts of revised banking and insurance laws. It is

hoped that similar work -- though less extensive -- can

soon be undertaken in the areas of corporate and licens-

ing laws.

Continued active policing, enforcement, and sur-

veillance in the areas of licensing of businesses, cor-

porate activity, labelling and shipment of alcoholic

beverages, made possible the maintenance of a high

degree of compliance on the part of the business com-

munity with existing laws in areas of activity under the

jurisdiction of this office.












Act No. 1604, approved on March 4, 1966, made deposit

insurance compulsory for all banks doing business in the

Virgin Islands. In addition, fiscal year 1966 witnessed

the granting to Barclays Bank D.C.O. of London, England,

of authorization to conduct business in the Virgin Islands.

Still pending at the close of the fiscal year is an applica-

tion from the Caribbean Bank and Trust Corporation, a

group comprised mostly of Virgin Islands businessmen.

The Sanitary Facilities Fund, long inactive due to the

depletion of the original appropriation was reactivated at

the suggestion of this office, and all persons with pending

applications both in the Department of Finance and this

office were contacted.

The implementation of the Uniform Commercial Code

created by Act No. 1299, approved February 19, 1965,

and which became effective on July 1, 1965, brought about

a decrease in fees collected for documents recorded. Prior

to the passage of this Act, fees for recording documents













were governed by 28 V.I.C. and 11 V.I.C. 649. How-

ever, the Uniform Commercial Code provides for a flat

fee of $2.00 for the recording of secured transactions.

Conferences were held between staff members and

Wp shington officials with respect to the processing of

passports and the control of alcoholic beverages.

A detailed report of each individual agency under the

jurisdiction of the Office of the Government Secretary

follows.










SCOPE


Under the Organic Act of the Virgin Islands, the

Government Secretary is the Custodian of the Seal of the

Virgin Islands; is required to record and preserve the

laws enacted by the Legislature. In the absence of the

Governor, the Government Secretary is Acting Governor

of the Virgin Islands.

Pursuant to Title 3, Chapter 3 of the Virgin Islands

Code, the Government Secretary, in addition to the other

powers and duties conferred upon him, has supervision

over the assessment of real property taxes, jurisdiction

over the filing and recording of deeds and other records of

real property transactions, and all other instruments re-

quired by law to be filed or recorded, as well as responsi-

bility for administration of the Uniform Commercial Code.

He is the Commissioner of Insurance and as such must

license and supervise insurance companies and agents opera-

ting in the Virgin Islands. As Chief Licensing Officer for

the Government, the Government Secretary is responsible












for issuing all licenses (other than medical licenses) for

businesses and occupations prescribed by Title 27 of the

Virgin Islands Code.

Under Title 13 of the Virgin Islands Code the Govern-

ment Secretary is also charged with the duty of licensing

corporations and the processing of corporate documents.

He is also the Registrar of Trademarks and trade names.

In all of these licensing functions, the Government Secre-

tary must assess and collect all licensing and filing fees,

franchise taxes, etc., prescribed by the Virgin Islands

Code.

The Government Secretary is also Chairman of the

Board of Control of Alcoholic Beverages and the Banking

Board. The administrative responsibility for the function-

ing of these boards is also under the jurisdiction of the

Government Secretary's Office.









ANNUAL REPORT

OFFICE OF THE GOVERNMENT SECRETARY
FISCAL YEAR 1966




CORPORATIONS

Two hundred and thirty-nine (239) new corporations

were authorized to do business, while 10 were dissolved

for non-compliance with corporate laws, 5 withdrawals,

and one surrendered corporate rights during fiscal year

1966, bringing the total corporations registered in the

Virgin Islands to 1, 223. Of the new corporations regis-

tered 194 were domestic, 26 foreign and 19 non-profit.

The effective implementation of the existing corporate

laws continue to be hampered by the lack of adequate per-

sonnel to cope with the steady increase in corporate activi-

ty and a compelling need for revision of portions of these

laws.

Presently, the most pressing of the revisions this office

believes to be necessary concerns the need for the estab-

lishment of a uniform date for the simultaneous filing of












corporate annual reports and payment of franchise taxes--

Title 13 of the Virgin Islands Code sets April 15 for filing

of annual reports and June 30 for the payment of franchise

taxes. A uniform date would conserve time and paper

work for both the businessman and the Office of the Govern-

ment Secretary, and would serve to enhance the public

service and convenience.

The results of the continuing efforts of this office to

improve the effectiveness of the administration of the cor-

porate laws are reflected in the following comparative

tables for the past five years:











COMPARATIVE CHART NUMBER OF CORPORATIONS


Certificates of Incor-
poration Issued
Certificates of Amend-
ment Issued
Dissolutions
Withdrawals
Mergers
Surrender of Corporate
Rights


1962 1963 1964 1965 1966
Foreign Domestic Foreign Domestic Foreign Domestic Foreign Domestic Foreign Dometic


17 166 24 173 19 173 33 173 26 194


3 -- 6


4


10 1


COMPARATIVE TABLE FRANCHISE TAXES AND CORPORATE FEES


Filing Fees


$ 12,458.34 $ 13,179.00


Franchise Taxes Including
Penalties


20,127.56


38,098.75


1964

$ 15,196.17

35,770.92


1965 1966

$ 14,561.17 $ 18,295.98


36,288.80


36,500.73












LICENSING OF BUSINESSES AND OCCUPATIONS

The continuing economic expansion of the Virgin

Islands economy was clearly indicated by the increasing

number and varying types of licenses issued by the Office

of the Government Secretary during fiscal year 1966.

There existed as of June 30, 1966, a total of 3,852

licensed businesses and occupations from which fees in

the amount of $186,429.00 were collected as compared

with 3,735 licenses from which $172,865 was collected

during the previous fiscal year. This increase was due in

part to implementation of the amended provisions of

Section 303, Chapter IX, Title 27 of the Virgin Islands

Code which provides for the licensing of several previously

unlicensed types of business operations and occupations as

well as "any other business not (specifically) included."

The following charts show a comparison of licenses

issued and fees collected over the past five fiscal years:













LICENSES ISSUED AND FEES COLLECTED


1962 1963 1964 1965 1966
Licenses Fees Licenses Fees Licenses Fees Licenses Fees Licenses Fees


$63,480.00 1,716 $101,592.50 2,010 $117,421.50 2,115
38,474.00 1,034 39,176.00 1,486 32,811.00 1,620
$101,954.00 2,750 $140,768.50 3,496 $150,232.50 3,735


$130,781.68 2,221
42,084.00 1,631
$172,865.68 3,852


$ 141,084.00
45,345.00
$ 186, 429.001


1. Includes fees collected for licenses for which applications have been received but licenses not yet issued, as well as
refunds.


District

St. Thomas
& St. John
St. Croix


1,514
922
2,436











TRADE NAMES

In compliance with Act No. 923, approved January 23,

1963, which provides for governmental control of the use of

trade names of businesses in the Virgin Islands by means of

registration, 205 new registrations were recorded during the

fiscal year 1966, bringing the total number of trade names

filed in this office to 859. Fees collected for this activity

during the fiscal year amounted to $1,025.00 as compared

with $1, 120.00 during fiscal year 1965, $1, 695.00 in 1964,

and $860.00 the previous year.

INSURANCE

Equity Publishing Corporation of Orford, New Hampshire,

has been contracted to complete preparation of a draft of a

new insurance law for the Virgin Islands. It is anticipated

that this long overdue and complete revision of these laws

will enable this office to provide more and better service to

the insurer as well as protection for the insured in keeping

with the need for continued surveillance of the insurance












business as it continues its rapid growth in number and com-

plexity of the problems involved.

At the end of the fiscal year there were 84 insurance com-

panies authorized to conduct business in the Virgin Islands

as compared with 78 during the last fiscal year, and 68 the

year before. Six new companies were registered last year

as compared with 9 the year before.

In addition, two foreign companies withdrew and one

domestic company was dissolved.

Gross premiums written during the year totalled

$3, 637, 957.20 as compared with $2, 761, 496.82 last year,

an increase of $876,460.38. Gross premium taxes totalled

$32,929.54 this year as compared with $24,892.43 last year,

an increase of $8,037.11.

During the fiscal year 152 insurance licenses were issued,

86 of which were insurance agents, 21 insurance solicitors,

and 45 were issued to apprentices.

As a means of providing added protection for insurance












policy holders in the Virgin Islands and as a result of past

experience this office continues to require all insurance

companies applying for authority to do business in the Virgin

Islands to post bonds and/or securities in the form of cash

deposits or United States Treasury Bonds of usually $50,000

to $75, 000, depending on the type of insurance to be written.

Such securities are in turn deposited with one of the local

banks -- subject to the control of the Insurance Commissioner.

The following is a comparative table of fees collected

from insurance activities over the past five fiscal years:












COMPARATIVE ANALYSIS OF FEES COLLECTED FOR INSURANCE ACTIVITIES
FISCAL YEARS 1962 TO 1965


Certificates of Authority

Agents Licenses

Brokers Licenses

Solicitors Licenses

Gross Premium Taxes

Filing Annual Statements

Filing Power of Attorney

Sale of Insurance Laws


1962

$3,076.00

2,821.86



200.00.

12,784.86

151.00

145.00

61.00


1963

$ 3, 187.50

3,068.22



827.53

15,015.37

167.00

90.00

44.00


1964

$ 2,747.50

2,870.00



1,460.00

18,769.49

172.50

115.00

18.00


$19,239.72 $22,400.12 $26,152.49 $32,857.95 $42,903.72


1965

$ 3,412.50

3,047.50

100.00

1,117.52

24,892.43

190.00

70.00

28.00


1966

$ 3,375.00

4,943.68

200.00

1,050.00

32,929.54

212.50

90.00

53.00












BOARD OF CONTROL OF ALCOHOLIC BEVERAGES

The Board of Control of Alcoholic Beverages prescribes,

administers, and maintains regulations pertaining to the

manufacture and sale of alcoholic beverages and articles

containing denatured spirits. Quality control continues to

be one of the primary objectives as well as challenges of

the Board and the industry.

The completed expansion of the laboratory facilities and

the expected arrival of certain chemicals will facilitate the

Board in performing the necessary analyses in its continu-

ing surveillance of the industry's products, thereby ensur-

ing compliance with set standards and helping to point the

way toward possible improvement in the quality of rum pro-

duced.

During fiscal year 1966 the Director of the Board of Con-

trol of Alcoholic Beverages conferred with officials of the

Alcohol and Tobacco Division of the Treasury Department












in Washington, D. C. During these conferences special

attention was given to the question of quality control. The

consensus was that there is no sufficiently good evidence of

any immediate need for the Government of tie Virgin Islands

to institute a program of compulsory aging of all rums pro-

duced in the Islands as a means of insuring good quality.

It was suggested instead that the Government of the Vir-

gin Islands make periodic analyses of the different rums

produced, bringing to the attention of and discussing with

manufacturers the findings therefrom. The thought is that

such a procedure would provide to each manufacturer much

greater latitude of operation, without imposing what might

be considered unwarranted restrictions on private industry

and at the same time ensuring a good quality product.

Licensed manufacturers operating under the general super-

vision of the Board of Control of Alcoholic Beverages are as

follows:












Distillers

1. Virgin Islands Rum Industries, Ltd. (St. Croix)
2. West Indies Distillers, Ltd. (St. Thomas)

Manufacturers of Liquor

1. Brugal & Co.,Inc. (St. Croix)
2. E. Delatour et Cie. (St. Croix)
3. Sunbuilt Tropical Fruit Products Ltd. (St. Thomas)

Manufacturer of Denatured Alcohol

1. Virgin Islands Rum Industries (St. Croix)

Manufacturers of Articles Containing Denatured Spirits

1. Huntley Ltd. (St. Thomas)
2. Virgin Islands Perfume Corporation (St. Thomas)
3. V. I. Rum Industries Ltd. doing business as
V. I. Bay Rum Manufacturing Co. (St. Croix)
4. Warner Lambert Caribbean Corporation dba
West Indies Bay Co. (St. Thomas)

The following charts reflect the growth of the industry
over the past five years:








2
Rum Produced in the Virgin Islands 1962 1963 1964 1965

Virgin Islands Rum Industries, Ltd. 1,084,334 832,204 878,917 980,065
West Indies Distillers, Ltd. 200,000 157,470 327,072 180, 102

Total Proof Gallons 1,284,334 939,674 1,205,989 1, 160, 167

Alcoholic Beverages Exported to U.S. 1962 1963 1964 1965

Rum 825,387 735,077 1,230,257 1,099,928
Whiskey 4,343 2,568 2,160
Cordials, Liquers, etc. 4,381 28,571 17,796 3,204
Total Proof Gallons 834, 121 766,216 1,250,213 1, 103,132

Denatured Alcohol Produced (Wine Gallons) 1962 1963 1964 1965

Virgin Islands Rum Industries, Ltd. 2,863 4,370 3,018 5,895

Denatured Alcohol Used in the Manufacture of Perfume, Bay Rum and Toilet Water, etc.

1962 1963 1964 1965

West Indies Bay Co. 8,759 10,398 13,894 17,920
Virgin Islands Bay Rum Manufacturing Co. 2,861 4,368 3,019 5,720
Virgin Islands Perfume Corporation -- -- 147 369
Huntley Ltd. -- 572 803 275
Total Wine Gallons 11,620 15,338 17,863 24,284

2. Calendar Years












Periodic motor vessel inspection with the cooperation of

the U. S. Customs Office to check compliance with Virgin

Islands Labelling Regulations of imported Alcoholic Bever-

ages has proven to be very effective. The percentage of

merchandise brought into the Islands by these motor vessels

and rejected has dropped from approximately 50% to about 5%.

The number of vessels inspected over the past 3 years

and the amount of cargo involved are as follows:

Year Vessels Inspected No. of Cases

1963 21 4,972
1964 30 4,653
1965 29 3,939

PASSPORTS

Despite President Johnson's "See America First Program",

the number of passports issued and renewed during fiscal

year 1966 continued its yearly increase over previous years.

Four hundred ninety-three passports were issued and 173

renewed during the fiscal year covered by this report as com-

pared with 334 issued and 123 renewed during the previous












fiscal year.

During the fiscal year an attorney from the Passport Divi-

sion of the Department of State visited and conferred over a

two-day period with the Government Secretary, Deputy Clerk

of the Court and the passport adjudicator for this office.

As a result of this conference the submission of finger-

print cards and affidavits by passport applicants was deemed

to be unnecessary, thus decreasing the amount of paperwork

involved in the processing of passports. Possible improve

methods of filing passport records were also discussed, in-

cluding possible establishment of a cardex system to facilitate

record keeping.

Perhaps some indication as to the over-all quality of the

work being performed by this office in connection with the

processing of passports can be derived from the following

excerpt from a letter addressed to Governor Paiewonsky by

Miss Francis G. Knight, Director, Passport Office, dated

January 25, 1966:













"Since I wrote to you last February we have
again reviewed the passport services which you
perform and we are, indeed, pleased with the
quality of the work performed by your staff. The
applications which you send us are well documented.
They show clearly the type of citizenship evidence
which was submitted and, in almost all cases, they
show that the evidence was acceptable."

In an effort to improve still further the efficiency of this

office in the processing of passport applications, as well as

increase the potential of the office to assist applicants, the

adjudicator has been enrolled in a correspondence course in

nationality law and procedures being conducted by the Pass-

port Division of the Department of State.

The following tables reflect passport activities and fees

collected over the past five fiscal years:

1962 1963 1964 1965 1966

Issued 199 273 273 334 493
Renewed 28 60 118 123 173
Amended 9 8 8 5 8
Extended 1 -

237 341 399 462 674












Fees Collected

1962 1963 1964 1965 1966

Totals $1,931 $2,762 $3,115 $3,621 $ 5,3023

TRADEMARKS

Trademarks and Patents are processed in accordance

with the Governor's Rules and Regulations promulgated on

June 11, 1959. The following tables show activities and fees

collected in this area over the past five fiscal years:

1962 1963 1964 1965 1966

Design Patents 1 1 1 -- --
Orig. Registrations 24 24 19 35 27
Renewals 7 4 13 13 11
Assignments 8 6 -- 18 1
Changes of Name 6 2 4 2 2
Mergers 20 2 -- 2 2
66 39 37 69 43

Fees Collected

1962 1963 1964 1965 1966

Totals $1,032.50 $ 1,005.00 $907.50 $3,621.00$832.50


3. Of the amount shown above $64.00 represent fees
collected in the last days of fiscal year 1965, passports
for which were not processed until early July 1965.
There is no fee for amending passports.












In addition to the $832.50 collected in fiscal year 1966,

fees in the amount of $75.00 were collected in fiscal year

1965, the documents for which were issued early in fiscal

year 1966, thus making a grand total of $907.50.

NOTARIES PUBLIC

There has been an increased interest by persons desirous

of obtaining notary public commissions over the past fiscal

year. The present quota for the Virgin Islands is 60 com-

missions, of which 58 have been subscribed.

The following tables reflect activity in this area over the

past five fiscal years:








Fiscal Year 1962
Total
Issued June 3Q
1962 Cancelled 1962 Renewals


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


6 1
13 1
7 --
13


$175.00


Fiscal Year 1963
Total
June 30, Issued June 30,
1962 1963 Cancelled 1963 Renewals
7 4 -- 11 1
11 3 -- 14 2


5 13


$245.00


June 30,
1961









Fiscal Year 1964
Total
Issued June 30,
1964 Cancelled 1964 Renewals


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


-- 14
1 21
-- 8
2 15


$480.00


Fiscal Year 1965

Issued
1965 Cancelled


Total
June 30,
1965 Renewals


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


June 30,
1963


June 30,
1964


22


$365.00















June 30,
1965


Fiscal Year 1966
Total
Issued June 30,
1966 Cancelled 1966 Renewals


Public Notaries (St. Croix)
Public Notaries (St. Thomas)
Govt. Notaries (St. Croix)
Govt. Notaries (St. Thomas)
Total Fees Collected


10


$680.00












MINISTERIAL LICENSES

There were ten letters of authority to ministers of the

gospel issued during the fiscal year 1966, permitting them to

perform civil-religious ceremonies in the Virgin Islands. The

following table reflects the number of such letters issued during

the last five fiscal years:

1962 1963 1964 1965 1966

19 7 14 20 10

No fees are collected for these letters of authority.

LEGISLATION

This office assigns act and resolution numbers to all bills

passed by the Legislature of the Virgin Islands and approved

by the Governor, as well as distributes copies to all govern-

ment departments. These measures are subsequently printed

in slip law form after which a further distribution is made

and the remainder filed in the Office of the Government Secre-

tary. The following table shows the number of acts and res-

olutions passed and approved during fiscal year 1966:












1962 1963 1964 1965 1966

Acts 140 133 172 222 344

Resolutions 14 39 44 39 32

BANKING BOARD OF THE VIRGIN ISLANDS

As provided in Title 9 of the Virgin Islands Code all banks

and foreign banks doing business in the Virgin Islands shall

be regulated and supervised by the Banking Board of which the

Government Secretary is Chairman by virtue of Section 42,

Title 3 of the Virgin Islands Code. The Board, with the ap-

proval of the Governor of the Virgin Islands, may adopt regu-

lations consistent with the laws for the purpose of effectively

discharging its responsibility.

Within the scope of its authority the Banking Board endea-

vors to continue its responsibility for protection of the de-

positor and the continuation of sound banking practices in the

Virgin Islands. The Chairman of the Banking Board upon the

recommendation of the Board and with the approval of the

Governor is authorized to issue licenses to banks permitting












them to conduct banking business in the Virgin Islands.

At the end of fiscal year 1966 there were five banks and

one savings and loan association doing business in the Virgin

Islands -- The New St. Croix Savings Bank, Virgin Islands

National Bank, Chase Manhattan Bank, Bank of Nova Scotia,

Barclays Bank D.C.O. and First Federal Savings and Loan

Association.

Under the provisions of Title 9 of the Virgin Islands Code,

the banks of the Virgin Islands with the exception of the Vir-

gin Islands National Bank, Chase Manhattan Bank are super-

vised by the Banking Board. National Banks are excluded from

this supervision by the provisions of the National Bank Act of

Congress (12 U.S.C. Sec. 21 et seq.).

During fiscal year 1966 the Banking Board considered two

applications from institutions interested in conducting banking

business in the Virgin Islands. The Board approved one

application, that of Barclays Bank D.C.O. of London, England.












The other application which was received from the Carib-

bean Bank and Trust Corporation is still pending.

Also receiving authorization during the past fiscal year

to conduct business in the Virgin Islands but which is not

yet in operation, was the First National City Bank of New

York. This authorization was granted by the Comptroller

of the Currency in Washington, D. C., who is also the

Administrator of National Banks.

In addition, both the Chase Manhattan Bank, N.A. and

the Virgin Islands National Bank have received permission

to open additional branches. All this attests clearly to the

continuing growth and over-all development of the Virgin

Islands.

In the field of legislation, this fiscal year witnessed the

passage of Act No. 1604, approved March 4, 1966, which

made deposit insurance mandatory for all banks operating

in the Virgin Islands. And, this office is finally in a position

to report that the long overdue and vitally important revision












of the banking laws has been initiated. Contracts were

finalized with Equity Publishing Corporation and a draft is at

last being readied for presentation to the Board, banks, and

other interested parties with a view toward subsequent sub-

mission of a final draft to the Governor for his approval and

transmittal to the Legislature at its next regular session.

The following comparative table reflects the growth of the

banking industry of the Virgin Islands for the past four fiscal

years. It should be noted that the 1965 figures represent the

activities of only the four banks established at that time.

The 1963 and 1964 figures include the activities of these

four banks and the savings and loan association. The figures

for 1966 represent activities of five banks and the savings

and loan association.












Total Assets

Total Liabilities

Loans

Mortgages

Deposits:

Time

Demand

Savings

Cash on Hand


Fiscal Year 1963

$ 59, 056, 190.45

56,270,413.12

9, 149,990.47

21,766,369.67

51,988,767.834


4,258,403.47


Fiscal Year 1964

$ 67, 782,950.85

63,908,111.13

13,282,331.67

27,925,425.09

58,721,006.435


3,379,280.27


Fiscal Year 1965

$ 79,541,767.85

77,169,041.58

20,905,951.94

30,585,358.66



6,439,154.046

34,309,809.137

33,335,260.94

1,938,825.78


Fiscal Year 1966

$ 106,075, 039.56

103,461,337.74

26,444,218.65

39,961,792.83



19,859,789.28

35, 124,628.91

42,527,182.78

4,287,970.05


4, Includes time, demand, and savings deposits
5. Includes time, demand, and savings deposits
6. Does not include New St. Croix Savings Bank
. Does not include New St. Croix Savings Bank












SANITARY FACILITIES

At the suggestion of the Government Secretary reactiva-

tion of the Sanitary Facilities Fund was begun using funds

paid back into the revolving fund by persons who had received

loans therefrom.

As of the end of fiscal year 1966, of the original $150, 000

appropriation $91, 156.12 had been paid out to 77 applicants

for loans; $72, 916.40 had been repaid in principal and interest;

$79, 123.35 had been expended by the Department of Public

Works; leaving a cash balance of $52, 636.93 in the fund as of

June 30, 1966.

As was pointed out in previous annual reports, this pro-

gram has been seriously hampered by the extremely acute

housing shortage in these Islands which makes it virtually

impossible for tenants to find other housing accommodations

so that property owners could rebuild and/or repair delapi-

dated housing and install modern sanitary facilities.












RECORDER OF DEEDS

Under the provisions of Section 36, Title 3 of the Virgin

Islands Code, the Government Secretary is responsible for

establishing and maintaining in each Judicial Division, an

office for the filing and or recording of deeds and other legal

instruments relating to the title to real property situated in

the judicial districts and all other legal instruments required

by law to be filed or recorded therein. Each office shall be

in charge of a recorder of deeds, who shall be an employee

attached to the Office of the Government Secretary, and who

shall be designated as such by the Government Secretary.

The instruments and records in each office shall be open to

public inspection during ordinary business hours on each

business day. The Recorders of Deeds perform their duties

under the supervision and direction of the Government Secre-

tary.












Office of the Recorder of Deeds, St. Thomas

Five thousand seven hundred eighty-three documents were

recorded during fiscal year 1966, resulting in the collection

of $46,664.93 in fees; as compared with 5, 794 documents re-

corded and $58, 796 collected for fiscal year 1965. The

$46, 664.93 referred to above does not include collections

made by the Department of Public Works for attestations and

measure-briefs.

In addition, 393 certified copies of documents were pre-

pared for which $423.10 was collected in fees.

A comparative analysis of documents recorded and

charges assessed over the past five fiscal years follows:












Comparative Analysis of Documents Recorded
Fiscal Years 1962 to 1966


Documents


1962 1963 1964 1965


1966


Deeds
Mortgages
Chattel Mortgages
Cond. Sales and
Contracts
Cancellation and
Releases
Bills of Sale
Leases
Liens
Adjudications
Easements
Death Certificates
Assignments
Trust Receipts
Promissory Notes


Financing Statements --
Miscellaneous 97
2,730


583 547 743 920 893
349 535 537 744 721
236 570 655 819 26


1,052 886 1,147 2,271


356
155
37
9
31
45
11





171
3,353


1,009 582
10 6
59 44
28 120
16 30
39 35
6 11
21 23
-- 15
-- 8

397 169
4,767 5,794


313

602
21
58
903
33
22
12
37

2
1,926
216
5,783


Comparative List of Fees Collected


1962


1963


1964


1965


1966


Total
Fees $22,150.73 $28,688.20


$42,170.33 $58,796.68 $46,664.93












Translation

Since the inception of the translation service in the Recor-

der's Office over 12,000 pages have been translated from

Danish to English including Books of St. John, all Danish texts

of deeds, mortgages, and other instruments from as far back

as 1777 to 1850 in Series I, and from 1881 to 1890 in Series II.

This translation service has proven invaluable to title searchers

and especially to title guarantee insurance companies. This

service also assists the courts, lawyers, and the Office of

the Public Surveyor, to name just a few.

All translated documents are cataloged and permanently

filed. It is expected that the completely translated Danish

Records xvill be eventually microfilmed.

Microfilming

The microfilm work continues. All books From Series 1

(A Z) through Series 7 (A Z) have been completed.

To facilitate further the efforts of this office and the

convenience of the public in this area, we hope to be able to












purchase and install a #M Filmac Motorized Microfilm or

similar printer-reader equipment.

In this connection, attention is again being invited to the

measure-briefs written in Danish and the Danish Land Records

presently on file in the Department of Public Works. Favor-

able consideration is strongly urged of recommendation in

previous annual reports to transfer these documents to the

Office of the Recorder of Deeds for translation, microfilming,

and filing, thus making available a complete set of property

records in at least one place in the Virgin Islands. The

urgent need for the implementation of this recommendation

is supported by the several litigations involving boundary

disputes in which disparaties exist between records on file

in the Office of the Recorder of Deeds and the Department of

Public Works.

Office of the Recorder of Deeds, St. Croix

The Office of the Recorder of Deeds, St. Croix, performs

the same services for the Judicial District of St. Croix as












are performed by the Recorder of Deeds for the Judicial

District of St. Thomas. Efforts similar to those underway

in St. Thomas are being carried out in the interest of bring-

ing about in St. Croix the same degree of improved service

and efficiency for the benefit of the St. Croix community.

The increasing economic development of the Island of

St. Croix is reflected to some extent by the substantial in-

crease in the work load of the Office of the Recorder of Deeds

for that Island, as well as in the revenues collected for ser-

vices rendered thereby, as illustrated by the following tables:


Comparative List of Fees Collected
Fiscal Years 1962 1966

1962 1963 1964 1965 1966

Total
Fees $14,412.25 $22,111.50 $31,956.50 $44,926.75 $60,012.00















Comparative Analysis of Documents Recorded
Fiscal Years 1962 to 1966


Documents


Deeds
Mortgages
Chattel Mortgages
Cond. Sales &
Contracts
Cancellation &
Releases
Leases
Liens
Easements
Adjudications
Death Certificates
Assignments
Trust Receipts
Certificates of
Attachments
Attachments
Financing
Statements
Continuation, Term-
ination Statements,
Assignment & Release
Miscellaneous
2


1962 1963 1964 1965 1966

676 718 748 848 984
403 501 539 622 765
166 121 193 336 51


437 357 1,762 565


352 383



30 19
10 23


431 542 671
29
25-
14
12 11 26
9 25 25
54
.-- 2


113 45 55 -- 454
-- -- --57

---- -- 1,477


40
297 295 399 408 302
,325 2,552 274T 4,554 5,541












UNIFORM COMMERCIAL CODE

Fiscal Year 1966 marked the first year of implementation

of the Uniform Commerical Code created by Act No. 1299

which became effective July 1, 1965.

The concept underlying the Uniform Commercial Code is

that "commercial transactions" is a single subject of the law,

notwithstanding its many facets. The Code purports to deal

with all the phases which might arise in the handling of a com-

mercial transaction, from start to finish. It is based on the

uniform state laws which have received wide acceptance, but

which have not kept pace with changes in commercial practices

and upon provisions in other state laws which under the test

of judicial interpretation have proved wise and practical. It

is designed to modernize and mold into one integrated body of

law recognized present day commercial practices and to pro-

vide its own machinery for expansion of those practices.

The preamble of the Code states that its purposes are as

follows:













1. to simplify, clarify, and modernize the
law governing commercial transactions;

2. to permit the continual expansion of com-
mercial practice through custom, usage,
and agreement of parties;

3. to make uniform the law among the various
jurisdictions.

As matters of policy, the Code omits criminal sanctions,

leaves real estate and mortgages to local law, and avoids

preferring one class of persons over another class.Nor does

it operate in any way to impinge upon the power of taxation.

Thus, it not only covers but is limited to commercial law and

practices.

OFFICE OF THE TAX ASSESSOR

With the expiration of the legislative restrictions on assess-

ments and taxes imposed by Act No. 909, approved on June 18,

1962, the 1965 tax bills as mailed to property owners in

March, 1966, reflected the results of the reassessment of

two-thirds of all real property on the Islands of St. Thomas

and St. Croix.












The reflection of reassessed values in the 1965 real pro-

perty tax bills marked the beginning -- after a legislatively

imposed 5-year moratorium -- of the implementation of the

1960-61 reassessment program. This program entails the

reassessment of one-third of all real property in the Virgin

Islands every three years. This continuous three-year re-

assessment program was initiated by this office after exten-

sive consultation with the firm of Collett and Clapp. Based

on the experience thus far, this office is convinced of the

workability of this program in the realization of the objective

of this office to maintain equity in the real property assess-

ment system as well as to upgrade, improve, and coordinate

assessments with present market values.

As might be expected, the 1965 real property tax bills

which reflected the results of the completed two-thirds por-

tion of the three-year cycle reassessment program, generated

some comments among tax payers. For the most part, these

comments were centered around the amount of the increases--












rather than that which in the opinion of this office and from

its point of view is much more basic, namely, whether the

assessments were in fact fair and realistic in terms of today's

market values and equitable in relation to other properties in

the immediate area.

In an attempt to clarify certain questions which were

raised about the reassessment program and the increases

reflected in the 1965 tax bills, the Government Secretary

addressed the people on a territory-wide radio-tv hook up.

(See Appendix A.)

As a result of the above referred to reassessment program,

coupled with the continued vitality of the construction industry,

the total amount of taxable properties increased from

$83, 394,239 to $158, 729, 323 with a corresponding increase

in taxes from $1,042,427.99 to $1,984, 116.54.

Attention was also given during the fiscal year to the con-

cern expressed in last year's annual report with respect to

the question of delinquent real property taxes. I n December,











1965, the Governor appointed an ad-hoc committee consisting

of the Commissioners of Finance and Public Safety, and the

Government Secretary, with the latter as Chairman, to

(1) study this problem, (2) determine what can be done to col-

lect outstanding delinquent taxes, and (3) explore the possibi-

lity of expediting collections in the future.

As will be noted from the charts attached to this report as

Appendix B and Appendix C considerable progress has been

made in correcting this situation.

Another significant achievement of this office during this

fiscal year has been the upgrading of the mapping system for

the Island of St. John. To counteract appraisal problems en-

countered on that Island due mostly to the lack of proper

boundary marks and other proper identification of properties,

an assistant appraiser was assigned to work on St. John on a

full time basis. The results have been gratifying in that pre-

viously unidentifiable parcels have been plotted and now appear

on tax maps with proper identification marks and plot numbers.












In addition, property owners whose deeds have not been re-

corded from as far back as 1800 are being urged to have this

done without further delay.

The work of this office has been further facilitiated by the

installation of additional calculating machines in the offices

in St. Thomas and St. Croix and two Blu-Ray Dry Developing

Machines for duplicating prints, one each for St. Thomas and

St. Croix. This eliminates the dependence of this office upon

the availability of the facilities at the Department of Public

Works and saves land appraisers valuable time previously

spent in travelling to and from said Department to have prints

made.

Legislatively, this office was affected during the fiscal year

by the passage of Act No. 1630, approved March 21, 1966,

which transferred the Virgin Islands Board of Tax Review

from the jurisdiction of the Office of the Government Secre-

tary to that of the Department of Property and Procurement.











The following charts reflect the continuing progress being

made toward the realization of a workable, standardized,

and equitable system of assessing and taxing real property:
















TOTAL ASSESSMENT AND TAXES
ST. THOMAS, ST. CROIX, ST. JOHN
1961 1965


Assessments

$ 58, 741,770.00

63, 346,331.00

72, 017,612.00

83, 394,239.00

158, 880,727.00


Taxes

$ 734,272.13

791,829.14

900,220.15

1,042,427.99

1,986,009.09


No. of Amount of
Exemptions Exemptions

1,576 $47,800.00

2,099 58,974.72

2,338 67,085.49

2,687 79,430.39

3,062 155,590.57


Amount of
Modification

$ 105,173.64

70, 123.68

35,686.10


Year

1961

1962

1963

1964

1965


Bills
Issued

11,303

11,855

12,679

13,722

15,120


Taxes

$ 581,298.49

662,730.74

797,448.56

962,997.60

1,830,418.52







DETAILED CHART OF ASSESSMENTS AND TAXES
INCLUDING HOMESTEAD EXEMPTIONS


Year


Taxes


No. of Bills
Issued


Island

St. Thomas







St. Croix







St. John


Assessments


$ 28,098,747.00
30, 148,342.00
34, 520,023.00
40,163,098.00
75,529,769.00


28,661,753.00
31,078,240.00
35,302,237.00
40,890,229.00
80,474, 180.00


1,981,270.00
2,119,749.00
2,195,352.00
2,340,912.00
2,876,778.00


$ 351,234.34
376,854.28
431,500.29
502,038.73
944,122.11


358,271.91
388,478.00
441,277.96
511,127.86
1,005,927.29


24,765.88
26,765.86
27,441.90
29,261.40
35,959.72


5,500
5,744
6,210
6,760
7, 157


5,100
5,397
5,731
6,191
7,120


703
714
738
771
843










DETAILED CHART OF ASSESSMENTS AND TAXES
AFTER HOMESTEAD EXEMPTIONS


No. of
Island Year Homesteads


St. Thomas







St. Croix







St. John


800
989
1,031
1,252
1,424


666
990
1,182
1,288
1,474


110
120
125
147
164


Amount of
Homesteads


$ 20,000.00
24,274.31
28,913.96
33,155.88
69,121.85


25,300.00
31,830.66
34,905.85
42,566.60
80,180.00


2,500.00
2,869.75
3,265.68
3,707.91
6,288.72


Amount of
Modifications


$ 35,442.00
23,628.88
12,512.64





63,131.64
42,087.73
21,148.11





6,600.00
4,407.07
2,025.35


Taxes Before
Deductions


$ 351,234.34
376,354.28
431,500.29
502,038.73
944,122.11


358,271.91
388,478.00
441,277.96
511,127.86
1,005,927.29


24,765.88
26,765.86
27,441.90
29,261.40
35,959.72


Taxes After
Deductions


$ 295,791.34
328,951.09
390,073.69
468,882.85
875,000.26


269,840.27
314,559.61
385,224.00
468,561.26
925,747.29


15,665.88
19,489.00
22,150.87
25,553.49
29,671.00












RECAPITULATION OF 1964 AND 1965 ASSESSMENT AND TAXES


No. of Land and
Year Bills Building Taxes

Total of Non Taxable Including Tax Exempt, Church, etc.

1964 $ 96,863,369 $ 1,210,792.11

1965 206,729,680 2,584, 121.00

Total of Tax Exempt, Government, Church

1964 52 13,469,130 168,364.14

1965 640 50,834,724 168,364.14

Total of Tax Exempt

1964 52 13,469,130 168,364.14

1965 98 24,913,526 311,419.08


Nightsoil



$ 5,796.82

4,625.00


Amount of
Homestead



$ 79,430.39

155,590.57


Taxes



$ 1,137,158.54

2,433, 155.43



168,364.14

635,434.05


168,364.14

311,419.08












MISCELLANEOUS

The upward expansion of all activities relating to the ser-

vices performed by the Office of the Government Secretary

was reflected by the corresponding increase in the amount of

revenues collected by this office.

Despite a decrease of $12, 131.95 in fees collected by the

Office of the Recorder of Deeds in St. Thomas, $267,765.968--

an over-all increase of over $6,000 was reflected in revenues

collected by this office. This figure does not include over

$60,000 collected by the Department of Finance in St. Croix

for services rendered by the Office of the Recorder of Deeds,

St. Croix, nor $45, 345 collected for business and occupational

licenses by the Office of the Administrative Assistant to the

Governor for St. Croix.





8. Uniform Commercial Code provides for charge of flat
$2.00 fee for filing of secured transactions.
















Appendix A


STATEMENT
by

Honorable Cyril E. King
Government Secretary for the Virgin Islands

Regarding Real Property Reassessment
and Tax Bills For
the Calendar Year 1965



Virgin Islands News Media
April 11, 1966












Government of
The Virgin Islands of the United States

Office of the Government Secretary
Charlotte Amalie, St. Thomas 00801


Dear Friend:

In an effort to clairfy certain questions which have been
raised as a result of the over-all increase reflected in the
1965 notice of assessments and real property tax bills, I
made a public statement which was broadcast on radio and
television and reported in the newspapers.

It occurred to me that you may wish to have a copy of the
full text of my remarks for your perusal. I am therefore
taking the liberty of sending the enclosed copy in the hope that
it will help you to gain a better understanding of the circum-
stances which led to the over-all increase in the 1965 real
property tax bills.

As Government Secretary for the Virgin Islands and under
whose jurisdiction the Office of the Tax Assessor functions,
let me assure you that the reassessment program as admin-
istered by this office is no plan or scheme designed to impose
undue, unreasonable, or unfair tax burdens on you or any
group of property owners in the Virgin Islands -- nor is it
influenced by political or other insiduous motivations. It is
what we earnestly and sincerely believe to be a workable,
standardized, and equitable system of assessing and taxing
real property -- which is a necessary and integral part of
any continued orderly development and progress of these
Virgin I islands.

Given the opportunity it deserves to operate and barring












the exertion of any unexpectedly sharp economic influence,
this reassessment program normally will not give rise each
year to any substantial increase in real property taxes. As
a matter of fact, our experience supports the theory that in
relatively stable areas very little, if any, increase has been
or would be reflected in tax bills.

All good wishes.

Sincerely,


/s/ Cyril E. King
Government Secretary












My fellow Virgin Islanders and Friends:

I do hope that yours has been a most happy and joyous

Easter. I earnestly hope also that your enjoyment of this joyful

season will not be affected by my visit with you this evening,

through the courtesy of this station, for the purpose of discuss-

ing a matter which has assumed some urgency, namely, the

1965 tax bills.

Over the past three-month period residents of these Virgin

Islands must have become deeply concerned, and understand-

ingly so, by the unfortunate and unbridled viciousness of the

carefully planned, calculated, and obviously misleading, as

well as grossly irresponsible one-inch bold-face type head-

lines which have been appearing in one of our local newspapers.

Headlines such as:

"Property Taxes Going Up As King Orders Reassessments."

'V. I. Realty Tax Bills Zoom: Onwers Irate"

"King Multiplies Many Levies; Appeals Bd. Out of His Hands"

'King Kites Realty Taxes; Owners Irate; Was Revenge The












Motive?"

"Senators Meet Tues. On King's Tax Zoom"

More recently, just about two and one-half hours ago, some

of you might have been listening to one of our local radio stations

and heard the Chariman of the Senate Finance Committee of our

Legislature refer to what he described as a "spiteful, political,

cruel tax burden" imposed by me.

He went so far, my friends, as to suggest that the reassess-

ment of real property and the resultant tax increases may have

been intended to embarrass this Administration.

It could hardly be said that either these headlines and their

accompanying stories or the intemperate remarks of the

Senator were intended to inform, educate, and otherwise en-

hance the public's understanding of the real facts involving the

question of real property taxes -- a question which has been

raised as a result of the 1965 tax bills which are now in the

possession of property owners.

Nor can it be argued convincingly that they had any real












purpose other than to create, among other things, confusion,

distrust, and hopefully, of course, a general atmosphere

from which partisan political benefits can be derived.

In other words, while considerable heat may have been

generated, very little if any light has been shed on the cur-

rent question of the effect of the reassessment program upon

real property taxes -- a question which concerns me as

keenly as it does each and every one of you.

In March of 1961 the Government of the Virgin Islands

completed an eighteen-month project for the reassessment

of all real property in the Virgin Islands. Thus, for the

first time in the history of these Islands we were on our way

toward the realization of a workable, standardized, and equi-

table system of assessing and taxing real property.

In adopting this program, a systematic reappraisal system

on a three-year cycle basis was incorporated as a part of the

normal functions of the Office of the Tax Assessor. This

means that properties in each of the Assessment Districts












of St. Thomas and St. Croix were divided into Appraisal

Area I, to be reappraised during 1964; Appraisal Area II, to

be reappraised during 1965; and Appraisal Area III, to be

reappraised during 1966; and following the same sequence,

continue on a cycle basis to reappraise properties in one

appraisal area in each jurisdiction each year. It is our view

that only in so doing can we hope to continue to upgrade and

revise the real property assessment system in order to

maintain equity and some meaningful relationship between

assessments and market values.

Maintenance of this system involves three phases to be

performed annually in each jurisdiction in the following

sequence:

1. Appraisal of all property both land and
improvements, in one appraisal area;

2. Appraisal of all new subdivisions and new
building construction, as well as the reap-
praisal of properties affected by major de-
velopments in all areas; and












3. Inspection of all subdivisions in process
of being developed and buildings under con-
struction to determine percentage of com-
pletion on January 15, the end of the
assessment year.

Until 1963 it was neither practical nor possible to begin

accumulating raw data or take any other preliminary

measure incident to implementing this reappraisal system

due to passage by the Legislature of the following measures

which imposed serious restrictions on its operation.

A. Act No. 768, approved June 20, 1961,
provided that "tax liability for real
property for the calendar year 1960 ...
shall not be in excess of 25% of the tax
liability for the calendar year 1959; and

B. Act No. 909, approved June 18, 1962
provided that the difference between the
real property assessment of the tax pay-
er's property for the calendar years 1960
and 1961 be spread over a period of four
years.

In the meantime, a team of auditors from the General

Accounting Office in Washington, D. C., conducted an audit

of the Tax Assessor's Office and registered with the Governor












strong exception to the fact that "the continuing process of

making reassessments is not being followed." Subsequently,

the Comptroller General of the United States in his report

for the Fiscal Year 1962, took note of the fact that "the

systematic reappraisals were not started." More recently,

the Department of the Interior voiced its concern on the same

subject.

This then is the situation as it existed during the period

when by virtue of the operation of laws passed by the Legisla-

ture, the Office of the Tax Assessor was unable to discharge

fully its administrative responsibilities.

During this same period, the economic forces were taking

their toll of the equity and standards which were built into the

system: the general economic picture continued to improve

beyond the fondest dreams, real property values continued

their upward spiral and building costs rose significantly --

with assessments remaining constant.












Anticipating the expiration of Act No. 909 in 1965 with

the distribution of the 1964 tax bills, several conferences

were held in 1963 with a Consultant to Management Firm

with a view toward:

1. Revaluation of the property assessment
system; and

2. Their assisting in the preliminary plan-
ning for and preparation of procedures
to be employed in the operation of the
program.

In addition, work was started on the cdlection of preliminary

data needed in connection with the reassessment program.

Included was information on wages, cost of construction

material, sale prices, and, in the case of commercial pro-

perties, income from rentals.

The information collected indicated that even at that time --

late 1963, early 1964, two short years after the institution of

this program -- assessments and taxes were already falling

far behind market values. For example:












1. Buildings were at least 50% below mar-
ket values and land about 75% 100%
below;

2. While buildings were being constructed
at a cost of $18.00 to $22.00 per square
foot, assessments were still pegged be-
tween $3.50 and $6.00 per square foot;

3. Parcels of land were being sold at $10, 000
to $22, 000 per acre, while assessments on
the same parcels were pegged at anywhere
from $1,000 to $5, 000 per acre;

4. While rentals on commercial properties
rose from $300 to $600 per month to
$1, 000 to $2,000 per month, or from a
valuation of $10.00 to $15.00 per square
foot to as high as $47, assessments on
these same properties were based on a
valuation of $1.50 to $4.50 per square
foot.

The accuracy of these findings were strongly supported by

by the experiences of this Administration in its efforts to pur-

chase property in St. Thomas as well as in St. Croix and which

was formally brought to my attention on several occasions by

Governor Paiewonsky and the Director of the Budget who were

"astounded at the prices asked" and requested that "the Real












Property Assessment Officers under (my) supervision ... take

due note and give (this) matter some study."

As might be expected, the 1965 tax bills which reflect the

results of the reassessment program to date have generated

some comments among taxpayers generally. Many of these

taxpayers took advantage of the invitation on each tax bill to

visit the Tax Assessor's Office and discuss their questions

with members of the staff. A surprisingly large percentage --

almost 100% -- of these taxpayers, once they were given a de-

tailed explanation of the method used in arriving at the valua-

tion of their property and the relationship of said valuation to

present day market values as well as to neighboring property,

left the office satisfied that the assessed value of their pro-

perty is not only fair but reasonable.

There are others, of course, who, as is their right, will

file their grievance directly with the Appeals Board.

And their are still others who prefer to attempt to convert

this into a political issue. This they find more exciting and












provides what they believe to be too good an emotion-packed

issue to first seek to resolve by requesting an explanation from

the Office of the Tax Assessor.

For example, there is a celebrated and much publicized

1, 000% increase in the taxes on a piece of property at Lovelund.

What are the facts?

The property in question consists of 464 acres of good land

on the northern side of St. Thomas in the vicinity of Magens

Bay Estates, Mandahl, St. Joseph, and Rosendahl. It was as-

sessed at $38,272.00 or $83 per acre. As a result of the re-

assessment it was increased to $362, 091.00 or $780 per acre.

And this is an area where land is being sold for more than

$8,000 an acre.

(See accompanying charts)

Property Tax is the oldest form of taxation used in the United

States, and in most communities it constitutes from 68 to 87%

of local tax revenues collected.

Here in the Virgin Islands it represented 6.69% of revenues












raised from all sources in 1958; 3.93% in 1961; 6.00% in 1962;

3.59% estimated for 1966; and 3.53 for 1967.

In other words, as the over-all economy continues its up-

ward spiral, an increasingly smaller percentage of revenues

raised from all sources is being derived from real property tax.

It is as true now as it was in 1961 when Messrs. Valdemar

Hill and Alonzo Moron, as members of an Ad Hoc Committee

appointed by Governor Paiewonsky, observed in a joint memo-

randum, addressed to me as Acting Governor, on the reassess-

ment program and the 1960 tax bills that:

".. .The recent economic history of the Islands
may be interpreted as making extremely ridiculous
the spread between even the recorded sales prices
and the values set on real property for tax purposes.
It is difficult to defend the failure to reflect in our
revenue resources the changes that have occurred in
real property values and in rental incomes in the
market place when so much more needs to be done
for our schools and our health and welfare services."

The task of assessing real property, especially in an eco-

nomic climate such as we are experiencing here in these Vir-

gin Islands, is a very difficult and complicated job.












As Government Secretary for these Virgin Islands I am

charged with the responsibility of supervising the work of the

agency which performs this function.

This I have tried to do conscientiously, objectively, and

fairly -- mindful on the one hand of the potential importance

of real property tax in helping this Government to meet its

budgetary commitments and the ever-increasing needs of our

people, and mindful on the other hand of the right of each citi-

zen to the full enjoyment and benefits of the fruits of his labor

without being burdened unduly with unfair and unrealistic pro-

perty tax.

This I am sure is what you would expect of me. And I

feel equally certain that you would not have me do otherwise.

Therefore, as you sit in sober, quiet meditation to eval-

uate the work of the Tax Assessor's Office as reflected in the

1965 real property tax bills, consider if you will NOT whether

real property taxes have been increased -- but whether the in-












crease has been fair and realistic in terms of today's market

values and equitable in relation to other properties in the

immediate area.

The staff of the Office of the Tax Assessor consists of

technically trained personnel which is doing a good, conscien-

tious job of implementing what we believe to be a sound and

effective system of assessment and reassessment of real pro-

perty.

You are invited to visit either the office in St. Thomas or

St. Croix for an explanation of how this program works and a

private discussion of your personal tax problem.

The results of the work of this office are responsive to the

economic realities of these Islands, responsive to the policies

of this Administration, and responsive to the views and con-

cern expressed repeatedly by the General Accounting Office

in Washington, the Department of the Interior, the Governor,

and the Director of the Budget.












In closing, may I suggest that it might be well for us to be

mindful of the strenuous efforts we are making to impress

Washington officials with the fact that we are a responsible,

mature people -- fully capable of administering all of our own

affairs.

The current situation involving real property assessment

and tax bills for the calendar year 1965 affords us a timely

opportunity to demonstrate that we are in fact responsible

and mature in every respect.

I am confident that we will rise to the challenge.

Thank you and good night.









ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. THOMAS

Old Per Acre New Per Acre Market
Location Acreage Assessment Value Assessment Value Price
Estate Petersborg 300 $ 57,893.00 $ 193.00 $ 235,256.00 $ 784.00 $8,000.00
,eLtjborg 132.87 21,930.00 165.00 105,876.00 797.00 8,000.00
Est. Lurkenlund 38.9 6,469.00 166.00 43,709.00 1,121.00 16,000.00

Botany Bay 169.8 4,500.00 27.00 68,092.00 401.00 4,000.00
Estate Fortuna 169.15 16,994.00 96.00 92,110.00 545.00 6,500.00
Bonne Esperance 53.1 7,307.00 138.00 51,556.00 973.00 9,000.00

Contant 71.4 18,618.00 262.00 80,832.00 1,138.00 10,000.00
Solberg(97.18) 178.25 45,889.00 258.00 350,179.00 1,967.00 18,000.00
Belleview 36.4 26,488.00 736.00 80,213.00 2,228.00 17,000.00
Estate Thomas (6E) 48 42,714.00 290.00 137,564.00 2,866.00 27,000.00
Estate Thomas (6A) 223.40 51,385.00 231.00 371,591.00 1,663.00 27,000.00


Note: *Previous assessment based on 97.18 acres whereas actual acreage found to be 178.25 acres











ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. THOMAS

Square Old Per. Sq. Ft. New Per Sq. Ft. Gross
Location Feet Assessment Value Assessment Value Income

$ 60,432.00, $ $ 203,648.0O0 $ $
Main Street 17,317 97,988.00 3.48 113,057.00 11.76

35,122.00 107,426.00
Main Street 12,155 19,982.00 2.88 18,491.00 8.83 12,000.00

28,906.00 89,513.00
Main Street 13,687 14,001.00 2.11 23,300.00 4.42

53,352.00 152,698.00
Main Street 25,969 11,492.00 2.05 21,307.00 5.88






Note Land
** Building









ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. THOMAS


Square


Old P


Feet Assessment

$ 29,923.00*.
7,330 12,432.00

38,352.00
14,500 16,673.00

12,662.00
2,905 9,818.00

11,585.00
2,656 51,278.00


Location


Main Street


Main Street


Main Street


Main Street

Main Street

Estate Thomas


$


726,049.00


er Sq. Ft. New
Value Assessment

$ 66,982.00,
3.26 16,699.00

121,800.00
2.60 21,472.00

26,389.00
4.35 22,341.00

20,653.00
4.36 57,715.00

328,650.00

.11 1,690,801.00


Note Land
** Building
*** Insular Government recently purchased from Federal Government 1.71 acres of land for $112, 500.00


8,805

33.12


Per Sq. Ft.
Value

$
9.13


8.40


7.77

10.74

.73


Gross
Income

$
36,000


22,500


33,000











ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. THOMAS


Location

Savan Area

Savan Area

Savan Area

Savan Area

Savan Area

Savan Area

Savan Area

Savan Area

Savan Area

Estate Thomas

Estate Thomas


Homestead
Exemption

$ 17.75


Amount
To Pay


21.34
21.34


Old
Assessment

$ 1,136.00

1,371.00

2,314.00

4,390.00

498.00

684.00

946.00

408.00

7, 135.00

10,309.00

1,382.00


Homestead
Exemption 1

$ 14.20 $


Amount New
To Pay Assessment

$ 1,420.00

17.14 1,707.00

2,689.00

61.13 2,398.00

6.23 655.00

8.55 316.00

11.83 1,824.00

5.10 1,373.00

89.19 8,453.00

91.36 14,531.00

17.28 4,493.00


33.61

21.98

8.19

3.95

22.80

17.19

105.66

62.50 119.14

56.16


28.93


37.50


Decrease
Increase

$


4.20


-31.15

1.96

- 4.60

10.97

12.09

16.47

27.78

38.88
















Location

Hospital Ground

Hospital Ground

Hospital Ground

Hospital Ground

Hospital Ground

Hospital Ground

Hospital Ground

Hospital Ground

Hospital Ground

Hospital Ground


Old
Assessment

$ 277.00

4,143.00

1,344.00

2,180.00

3,125.00

1,399.00

3,239.00

2,025.00

1,248.00

2,714.00


ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. THOMAS

Homestead Amount New Homestead
Exemption To Pay Assessment Exemption

$ $ 3.46 $ 1,682.00 $

37.50 14.29 5,433.00 62.50

16.82 1,714.00

27.25 7,746.00

39.06 4,032.00

17.49 2,098.00 26.23

37.50 2.99 4,258.00 53.23

25.31 2,759.00

15.60 1,722.00

33.93 3,582.00


Amount
To Pay

$ 21.03

5.41

21.43

34.33

50.40


Decrease
Increase

$ 17.57

- 8.88

4.63

7.08

11.34


34.49

21.53

44.78


9.18

5.93

10.85










ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. THOMAS


Location

Hospital Ground
New Quarters

Hospital Ground
New Quarters

Hospital Ground
New Quarters

Hospital Ground
New Quarters


Acreage


Old Per Acre New Per Acre Amount
Assessment Value Assessment Value To Pay

$ $ $ $ 31.20.,
2,496.00 4,200.00 3,956.00 6,719.00 49.45

50.40
4,032.00 4,200.00 6,221.00 6,480.00 77.76

50.84
4,067.00 5,100.00 5,442.00 6,716.00 68.03

26.99
5,139.00 1,050.00 6,905.00 6,480.00 23.81**


Note 1964
** 1965 Tax
** Homestead Exemption

















Location

Hospital Ground
New Quarters

Hospital Ground
New Quarters

Hospital Ground
New Quarters

Hospital Ground
New Quarters


Acreage


.51


.466


2.1


1.0


ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. THOMAS

Old Per Acre New
Assessment Value Assessment

$ $ $
761.00 1,492.00 3,718.00


9,353.00 4,150.00 11,363.00


5,685.00 2,707.00 11,370.00


4,074.00 4,074.00 7,920.00


Note 1964 Tax
** 1965 Tax


Per Acre
Value

$
7,290.00


7,830.00


5,414.00


7,920.00


Amount
To Pay

9.51.
$ 46.48

116.91
142.04

71.06
142.04

50.93
99.00









ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. CROIX

Square Old Per Sq. Ft. New Per Sq. Ft. Market
Location Feet Assessment Value Assessment Value Value

Salt River 64.69 $ 11,407.00 $ 176.00 $ 71,598.00 $ 1,107.00 $ 5,500

3,369 to
Mary's Fancy 55.58 10,904.00 196.00 50,266.00 904.00 11,000

La Grande Princess 2 2,600.00 1,300.00 8,577.00 4,288.00 16,500

Golden Rock 20.79 32,748.00 1,575.00 162,989.00 7,840.00 23,333

Green Quay 59.5 19,918.00 335.00 78,121.00 1,313.00 11,600

4,895.00,, 15,599.00:,
Betsy's Jewel 10.35 14,947.00 22,840.00 100,000

Little Princess 6.5 4,069.00 626.00 17,165.00 2,641.00 13,000




Note Land
** Building











ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. CROIX


Square Old
Feet Assessment

$ 16,178.00*
110.95 2,191.00

10, 717.00
71.60 2,239.00

326.38 208,610.00

97.565 13,053.00

5.78 3,622.00


128.05


$


8,102.00


Per Sq. Ft. New
Value Assessment

$ 134,212.00*,
146.00 3,588.00

96,298.00
150.00 2,994.00

615.00 433,292.00

134.00 69,469.00

627.00 9,262.00


63.00


91,047.00


Per Sq. Ft.
Value

$


Market
Value

$


1,212.00 5,500

2,631 to
1,345.00 11,538

898.00 2,631

712.00 10,627

1,602.00 2,400

2,372 to
714.00 5,500


Note Land
** Building


Location


Coakley Bay


Contentment

Beestoij Hill

Recovery

Rust-up-Twist


Bugby Hole














Location


Strand Street

Richmond


King Cross Street


King Street


Company Street


Acreage


9,317

35,567


10,975


3,757


5,367


ILLUSTRATIONS OF COMPARATIVE ASSESSMENTS
ST. CROIX

Old Per Acre New
Assessment Value Assessment

$ 3,577.00 $ .37 $ 33,078.00,*
2,660.00 6,281.00

2,708.00 .217 11,482.00
11,455.00 47,536.00

6,930.00 1.04 14,579.00
3,326.00 8,633.00

1,996.00 .89 2,462.00
9,546.00 29,433.00

247.00 1.78 271.00


Note Land
** Building


Per Acre
Value

$
3.54

.92


4.33


2.30


5.48


Market
Price

$
4.61

2.01


6.32


8.21


23.39








Appendix B


DELINQUENT REAL PROPERTY TAXES
BY ISLAND


As of December 1965

YEAR NO. OF BILLS


VALUE


As of March 1966

YEAR NO. OF BILLS


St. Croix Island


Christiansted 1960
1961
1962
1963
1964


1572


Frederiksted


1177


Total St. Croix Island


$ 975.22
2,460.96
6,498.90
15,952.74
49,627.31

$ 75,515.13

20.00
25.94
330.55
2,276.47
5,078.22
7,286.76
14,511.44
29,710.18

$ 59,239.56


Decreased 1134 Bills $54,145.92

2749 $ 134,754.69


40 $ 633.37
66 1,134.24
116 3,854.87
207 8,313.92
526 28,090.28

955 $ 42,026.68

3 20.00
5 25.94
10 335.55
62 2,127.63
64 4,113.15
90 5,743.94
153 9,938.49
273 16,277.39

660 $ 38,582.09



1615 $ 80,608.77


VALUE









Delinquent Real Property Taxes
By Island


As of December 1965

YEAR NO. OF BILLS


St. John Island


Total St. John Island


As of March 1966


VALUE


YEAR NO. OF BILLS


$ 1.13
7.28
34.48
82.34
11.34
193.07
422.20
688,63
970.95
1,347.24
4,143.61


VALUE


2 $ 1.13
3 7.28
6 34.48
9 82.34
5 11.34
11 193.07
29 421.26
24 607.81
39 903.38
35 787.99
72 2,780.88

235 $ 5,830.96


320 $ 7,902.27


Decreased 85 Bills $2,071.31


7552 $ 349,893.40


GRAND TOTAL


4972 $ 233,414.65










Delinquent Real Property Taxes
By Island


As of December 1965

YEAR NO. OF BILLS


As of March 1966


VALUE


YEAR NO. OF BILLS


St. Thomas Island


Total St. Thomas Island


79 $ 668.92
83 979.91
97 2,041.95
15 52.30
178 7,383.37
355 11,065.63
607 23,217.99
542 22,182.23
878 45,389.24
1649 94,254.90

4483 $ 207,236.44


46 $ 412.16
48 456.26
76 1,867.79
12 37.29
125 5,373.59
324 10,374.13
491 20,244.76
408 17,565.74
383 20,756.76
1209 69,886.44

3122 $ 146,974.92


Decreased 1361 Bills $60,261.52


VALUE


u~L,










DELINQUENT REAL PROPERTY TAXES
BY CALENDAR YEAR


As of December 1965


YEAR NO. OF BILLS


VALUE


As of March 1966

YEAR NO. OF BILLS


$ 1.13
676.20
1,014.39
2,144.29
89.58
7,906.99
14,739.52
31,445.80
36,938.84
77,200.66
177,736.00


7552 $ 349,893.40


2 $ 1.13
49 419.44
54 490.74
88 1,970.13
22 74.57
146 5,902.21
455 13,556.39
645 26,099.96
653 28,067.93
778 39,797.16
2080 117,034.99

4972 $ 233,414.65


Decreased 2580 Bills $116,478.75


Calendar Year


GRAND TOTAL


VALUE










Appendix C


DELINQUENT REAL PROPERTY TAXES BY ISLAND


As of March 1966


St. Croix
Christiansted








Frederiksted


Total St. Croix Island


Year No. of Bills


1960 40
1961 66
1962 116
1963 207
1964 526
955


1957 3
1958 5
1959 10
1960 62
1961 64
1962 90
1963 153
1964 273
660

1,615
Decreased 430 Bills


Value


$ 633.37
1,134.24
3,854.87
8,313.92
28,090.28
$42,026.68


20.00
25.94
335.55
2,127.63
4,113.15
5,743.94
9,938.49
16,277.39
$38,582.09

$80,608.77

- $26,054.55


As of June 30, 1966


Year No. of Bills


35
56
92
155
336
674


3
5
10
56
58
69
96
214
511

1,185


Value


$ 581.99
1,006.06
2,529.92
6,150.75
18,225.42
$28,494.14


$ 20.00
25.94
335.55
1,720.71
2,458.48
2,822.34
4,403.15
14,273.91
$26,060.08

$ 54,554.22


1%%ftb6-








DELINQUENT REAL PROPERTY TAXES BY ISLAND


St. Thomas


Total St. Thomas


St. John











Total St. John


As of March 1966

No. of Bills

46
48
76
12
125
324
491
408
383
1,209
3, 122


Value

$ 412.16
456.26
1,867.79
37.29
5,373.59
10,374.13
20,244.76
17,565.74
20,756.76
69,886.44
$146,974.92


Decreased 965 Bills $53,268.20


2
3
6
9
5
11
29
24
39
35
72
235
Decreased


$ 1.13
7.28
34.48
82.34
11.34
193.07
421.26
607.81
903.38
787.99
2,780.88
$5,830.96
30 Bills $ 1,314.26


As of June 30, 1966

Year No. of Bills Value


36
39
61
11
112
307
459
358
283
491
2,157


2
3
6
9
5
10
29
24
36
30
51
205


$ 327.75
366.83
1,490.32
36.04
4,588.16
10,140.21
19,843.26
13,158.84
13,479.54
30,275.77
$ 93,706.72



$ 1.13
7.28
34.48
82.34
11.34
112.76
421.26
607.81
860.50
546.62
1,831.18
$4,516.70


jppp"











DELINQUENT REAL PROPERTY TAXES
BY CALENDAR YEAR


As of March 1966

Year No. of Bills

1954 2
1955 49
1956 54
1957 88
1958 22
1959 146
1960 455
1961 645
1962 653
1963 778
1964 2,080

4,972



Decreased 1,425 Bills


Value


$ 1.13
419.44
490.74
1,970.13
74.57
5,902.21
13,556.39
26,099.96
28,067.93
39,797.16
117,034.99

$233,414.65



- $80,637.01


As of June 30, 1966

Year No. of Bills

1954 2
1955 39
1956 45
1957 73
1958 21
1959 132
1960 427
1961 597
1962 555
1963 564
1964 1,092

3,547


Calendar Year


Value

$ 1.13
335.03
401.31
1,592.66
73.32
5,036.47
12,864.17
23,915.61
19,371.60
24,580.06
64,606.28

$152,777.64




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