UNITED STATES VIRGIN ISLANDS
'E LIB, S
'UNIVEIIITY of 'FLOPIDA
-A NM1UC1A N
4c&"ELI IUCWT IW~
,i r A
UNITED STATES VIRGIN ISLANDS
FISCAL YEAR 1980-1981
Henry A. Million
PY Ir i ?
SUPERVISORY STAFF MEMBERS
OFFICE OF THE LIEUTENANT GOVERNOR
FISCAL YEAR 1980-1981
Henry A. Million
James A. O'Bryan
Esperanza L. Harrigan
Luz E. Rios
Marva L. George
Oswald 0. Schjang
Nydia L. Morris
June B. Querrard
Maysia 0. Roberts
Velisa B. Hansen
Verne R. Callwood
Special Aide (St. Thomas)
Special Aide (St. Croix)
Secretary to the Lieutenant Governor
Administrative Officer II
District Recorder of Deeds (St. Thomas-St. John)
Recorder of Deeds (St. Croix)
Senior Corporate Officer
Administrative Asst. Div. of Banks & Insurance
Deputy Tax Assessor (Christiansted)
Deputy Tax Assessor (Frederiksted)
TRANSMITTAL MEMORANDUM Page 1
THE OFFICES Page 5
PROJECT RENOVATION Page 7
DIVISION OF BANKS Page 10
CASHIER'S REPORT Page 22
DIVISION OF CORPORATIONS & TRADE NAMES Page 24
LEGAL PUBLICATION DIVISION Page 27
DIVISION OF INSURANCE Page 28
NOTARIAL COMMISSIONS Page 39
PASSPORT DIVISION Page 44
RECORDER OF DEEDS (St. Thomas-St. John) Page 46
RECORDER OF DEEDS (St. Croix) Page 56
OFFICE OF THE TAX ASSESSOR Page 61
THE VIRGIN ISLANDS OF THE UNITED STATES
Office of the Lieutenant Governor
Charlotte Amalie, St. Thomas
February 28, 1983
To: Governor Juan Luis
From: Lieutenant Governor Henry A. Million
Re: 1981 Activities of Office
I am pleased to submit a condensed summary of the various activi-
ties of the Office of the Lieutenant Governor for inclusion in the
Governor's Report to the Secretary of the Interior.
During the fiscal year plans were developed and work commenced on
the long discussed renovation of the Lieutenant Governor's complex in
St. Thomas. The sum of Seventy-five thousand ($75,000) dollars was
included for this purpose in the 1981 Fiscal Budget, Act No. 4634. In
addition to the decision to have Public Works handle the renovation
process, came the decision to relocate several offices in order to
create an atmosphere more condusive to the work process.
The Offices of the Recorder of Deeds dually recorded deeds and
other legal instruments totalling eighteen thousand eight hundred
fifty-seven (18,857), a decline of fifteen (15) from the previous year.
Banks and other lending institutions, including local and Federal
Government agencies, issued one thousand six hundred and eighty-four
(1,684) mortgages totalling $98,328,211, declines of four hundred
fifty-four (454) and $8,731,789, respectively from the previous year.
The Tax Assessor's Office completed the biannual reassessment of
property values in the territory. This reassessment resulted in an
increase of one billion one hundred four million two hundred seventy-
five thousand eight hundred and forty ($1,104,275,840) dollars in 1980
to one billion eight hundred ninety million nine hundred four thousand
four hundred thirty-two ($1,890,904,432) dollars in 1981, an increase
of seven hundred eighty-six million six hundred twenty-eight thousand
five hundred ninety-two ($786,628,592) dollars. The corresponding taxes
went from eleven million nine hundred eighteen thousand one hundred
twenty-one ($11,918,121) dollars in 1980 to twenty-three million six
hundred thirty-six thousand fifty-four ($23,636,054) dollars in 1981, an
increase of eleven million seven hundred seventeen thousand nine hundred
thirty-three ($11,717,933) dollars.
The land appraisal staff plotted four hundred (400) new subdivi-
sions and recorded several hundred changes in ownership and land areas.
During the fiscal year there were twenty-two (22) cancellations
of notary commissions and seventy-six (76) commissions issued.
The Passport Division issued four thousand nine hundred twenty-one
(4,921) U.S. Passports this fiscal year, an increase of one thousand
four hundred twenty-nine (1,429) over the previous year. Assignment of
Act Numbers and distribution to appropriate agencies were made to one
hundred thirty-seven (137) legislative bills. Of that number, one
hundred thirteen (113) were approved, eleven (11) became law without
approval, seven (7) were vetoed, eight (8) were repassed over executive
veto, and five (5) were subjected to the Governor's line item veto
The Division of Insurance approved one thousand six hundred
thirty-three (1,633) policy forms. The volume of business reported by
the companies during the fiscal year amounted to thirty-nine million
three hundred four thousand three hundred forty-seven dollars and
eighty-one cents ($39,304,347.81), an increase of three million one
hundred forty-nine thousand nine hundred ninety-nine dollars and three
cents ($3,149,999.03), over the previous year. Premium taxes collected
were seven hundred eighty-seven thousand nine hundred thirty-five
dollars and nine cents ($787,935.09), an increase of sixty-four thousand
six hundred seventy-six dollars and seventy-four cents ($64,676.74).
Mr. Rudolph E. Krigger, Director of Banks and Insurance resigned
from his post in the middle of the fiscal year in order to take up full
time employment with the V.I. National Guard. One hundred seventy-one
(171) companies, of which fifteen (15) are new, were licensed during the
fiscal year. Three (3) companies changed their corporate names and two
(2) companies withdrew from the V.I.
The Banking Board granted permission for Banco Popular de Puerto
Rico to begin operations in the Virgin Islands. Banco Popular is a
Puerto Rico based corporation with one hundred ten (110) branches there
and several in operation on the mainland. A proposal for the opening of
a branch submitted by Bank of the Caribbean was turned down by the Bank-
ing Board during the same fiscal year. The Royal Bank of Canada closed
down operations in the Virgin Islands during this fiscal year, leaving
four (4) National Banks, three (3) Foreign Banks, one (1) Savings and
Loan Association, and three (3) Small Loan Associations.
Time and Saving Deposits of Individuals, Partnerships, and Corpora-
tions for this fiscal year amounted to five hundred twenty-nine million
six hundred sixty-seven thousand ($529,667,000) dollars, a decline of
five hundred fifty-one million three hundred ninety-four thousand
($551,394,000) dollars from the previous year. Loans for the fiscal
year amounted to three hundred eighty-nine million five hundred two
thousand ($389,502,000) dollars, a decline of eight hundred ninety-seven
million two hundred twenty thousand ($897,220,000) dollars from the
previous year. Total Assets marked a low of one billion twenty-six
million nine hundred sixty-three thousand ($1,026,963,000) dollars, a
decline of seven hundred twenty-two million four hundred ninety-seven
thousand ($772,497,000) dollars.
The Corporate and Trade Names Division registered seven hundred
fifty-seven (757) new trade names, a decline of eighty-three (83) from
the previous year. Certificates of Incorporation were issued to one
hundred thirty-two (132) foreign, three hundred twenty-one (321)
domestic, and forty-three (43) non-profit corporations.
The principal offices of the Lieutenant Governor are located at
No. 18 Kongens Gade, King's Quarter, located on Government Hill in down-
town Charlotte Amalie, St. Thomas.
The historic three-story structure, constructed of yellow brick, is
only one of six buildings of its type still existing on St. Thomas. The
building's novel design is characteristic of the late Baroque tradition
of northern European countries, reflecting the Dutch influence on the
early Danish settlers of the Virgin Islands.
The records of the District Recorder of Deeds first mentioned the
building when it was transferred from the Royal delainscourt which
handled the estate of the deceased free mulatto Saphira Anthony to
Elisabeth Van Still with Curator John Carl Harboe acting in her behalf
on November 17, 1812.
After several other transactions, the two adjoining buildings, were
combined on March 17, 1846, with the central structure. On April 30,
1877, Mr. William Charles Lamb sold the entire property to the Danish
Government for the sum of ten thousand dollars.
The property has since been used for government offices. With the
purchase of the Virgin Islands by the United States in 1917, the
property was turned over to the federal government and later transferred
to the territorial government with the passage and execution of Public
Law 93-435 in 1975.
In the early years various departments of the territorial govern-
ment were housed under its roof. However, with the massive expansion of
activities falling under the jurisdiction of the Lieutenant Governor,
unrelated agencies have moved out and the building is comprised of
divisions of the Office of the Lieutenant Governor.
On St. Croix, the administrative offices of the Lieutenant
Governor, as well as the Christiansted branch of the Tax Assessor's
Office are located on the third floor of the historic Alexander Hamilton
House, adjacent to Government House in downtown Christiansted.
The two hundred year old structure, which dates back to the early
days of the Danish West Indies, is where the first Treasurer of the
United States, Alexander Hamilton, was said to have worked during his
early days on St. Croix. It was destroyed by fire in 1967, and rebuilt
afterwards. Of the original structure, only the first floor remains.
The Recorder of Deeds for St. Croix is located within the Govern-
ment House complex. The premises they occupy are part of the addition
built by Adam Sobotker, a merchant and planter, as a private home in
1794-97. Major changes were made to the structure beginning in 1818;
the residence was purchased by Governor General Peter von Scholten and
added to the Government House complex. The seller of the house,
Commissary of War Johannes Sobotker, was to become Governor of St.
Thomas and St. John, and eventually Governor General of the Danish West
The Frederiksted branch of the Tax Assessor's Office is located in
the Government Complex at Lagoon Street which was completed in October
On St. John, the Lieutenant Governor is represented by an employee
of the Tax Assessor's Office who is stationed at the Historic Battery
Complex in Cruz Bay.
During the fiscal year, plans were developed and carried out on
the long discussed renovation of the historic Kongens Gade complex of
the Lieutenant Governor in St. Thomas.
In recent years, the physical appearance of the building had
deteriorated considerably due to termite infestation and inadequate
attention. It became immediately apparent that a special appropriation
would be necessary since the Department of Public Works, having statu-
tory responsibility over all government buildings, did not have
sufficient funds to undertake the project. Consequently, an effort was
made to secure a special appropriation from the Legislature to undertake
this project. These efforts became a reality when $75,000.00 was
included for repairs to the building with the passage of the 1981 Fiscal
Budget, Act No. 4634.
However, before actual renovation work commenced, Public Works was
requested to submit estimates, and the Planning Office was required to
prepare a scope of work document due to the building's historic
significance. It was also necessary to fumigate the premises to
alleviate the long-standing termite problem. Efforts were also
completed to coat the ceilings with a tar-like substance to eliminate
a major leakage problem.
The project was further expanded when efforts to relocate the Tax
Assessor's Office to quarters outside the building succeeded in July.
The decision was then made to relocate several offices within the
building to take advantage of the space made available due to the Tax
Under the direction of the Special Aide, who was designated project
coordinator by the Lieutenant Governor, division heads met and drafted a
plan which would achieve the following objectives:
(1) The Division of Banks and Insurance would relocate from the
Courtyard's Annex to the Appraisal Section of the Tax Office
on the third floor.
(2) Accounting Division would relocate to the Administrative
Section of the Tax Office.
(3) The former Accounting Office would become a corporate file
(4) The former corporate file room would become an office for
Corporate's division head.
(5) The Passport Office would relocate to the annex offices,
formerly housing the Division of Banks and Insurance.
(6) The old Passport Office would become a reception area for
the Lieutenant Governor.
In the process of achieving these goals, it was further decided
that many long-standing problems of the offices would be resolved during
the course of the project.
Because private contractors submitted estimates far exceeding the
available funds, the decision was made to attempt to have Public Works
undertake the project. Mr. Roebuck, Construction Division Director, of
the Department of Public Works, inspected the offices and agreed to
allow his division to undertake the project. It was decided that rather
than transfer the repair funds appropriation into the Construction Divi-
sion's account, the office would make the necessary arrangements and
handle the purchases to facilitate the swift completion of the project.
Work on the project required considerable employee effort to
continue the usual work flow while suffering numerous inconveniences and
hardships in the course of the project. However, steady corporation,
on the part of all employees, made it possible to complete a major
portion of the intended work, with the minimum of inconvenience to the
public and little interruption in work production.
It is expected that work will be completed during the early part of
Fiscal Year 1982.
DIVISION OF BANKS
The Banking Board is the governing body of the Division of Banks and has its
functions and duties stipulated by Title 9 of the Virgin Islands Code. The member-
ship consists of two government officials, the Lieutenant Governor and the Commissioner
of Finance who are ex-officio Chairman and Secretary, respectively, and four persons
from the private sector.
The Board has a broad scope of authority which includes promulgation of rules
and regulations, formulation of policy decisions, regulation of foreign and domestic
banks and licensing of small loan associations and pawnbrokers. National Banks are
precluded from this authority since they are regulated by Federal Law.
During the fiscal year the number of banking institutions on all three islands
were as follows:
Four (4) National Banks, three (3) Foreign Banks, One (1) Savings and Loan
Association, and three (3) Small Loan Associations. The banks in our jurisdiction
are subsidiaries of large multi-national banks, and they operate a total of thirty
(30) branches. The small Loan Associations have seven (7) branches to service clients.
Island Finance phased out one of its branches (Golden Rock, St. Croix) during the
closing weeks of the fiscal year.
Despite the number of branches there were complaints from consumers that were
not being properly serviced, especially in the areas of mortgage financing and
veteran loans and that the banks were not competitive.
During this fiscal year Royal Bank of Canada, one of the foreign
banks, informed the Board of its intention to discontinue operations in
the U.S. Virgin Islands. This bank began operations approximately ten
years ago and operated solely on St. Croix. However, it turned out to
be an unprofitable venture. Apparently, its original location being in
an area where activities were minimal, rapid changes in management along
with several ill-made construction loans in the earlier years were
factors which contributed to its lack of success. In recent years the
bank moved to new quarters in the business section of downtown
Christiansted, but this decision may have been made too late since the
St. Croix economy was experiencing a decline.
An attempt was made to have Chase Manhattan Bank take over their
loans and deposits when they first decided to close the branch; however,
the transaction was never finalized because it did not receive the
sanction of the Federal Deposit Insurance Corporation. In the absence
of a workable solution, the bank authorities decided to serve notice on
the Board. The public was also notified by way of newspaper public
notice. The Assistant District Manager, Mr. Keppie, assured the Board's
Chairman that their existing clientele were being given their utmost
attention to facilitate them in obtaining alternate banking service with
the least inconvenience.
The bank moved into smaller quarters on the second floor at Church
Street for the purpose of phasing out its operations, and the permanent
physical closing will be accomplished well within the beginning of the
next fiscal year.
The Banking Board received application from Banco Popular de
Puerto Rico, requesting approval to operate branches on St. Thomas and
St. Croix. It seemed a timely filing since it came in the wake of Royal
Bank of Canada's decision to withdraw from the territory. Banco Popular
expressed the desire to utilize their office quarters. The assumption
of the present personnel of the Royal Bank and its portfolio was specu-
lated, however not confirmed by either side at the time of the hearings.
The Chairman, in an effort to get public sentiments on the new
applicant, held a public hearing on both St. Thomas and St. Croix.
This was the first time hearings of this nature were held on a bank
application presented to the Board.
At the hearings the President of Banco Popular de Puerto Rico,
Mr. Ledesma, appeared to give testimony and answer whatever questions
the public had concerning his bank's intention for the Virgin Islands
operations. Questions were raised regarding employment and training
of native Virgin Islanders to fill key positions in the bank, and also
the bank's policy in making loans available to small business owners
and/or farmers. Mr. Ledesma pointed out that banking, especially in
the loan area, requires a unique person and that type of person is not
developed or trained overnight. However, he did state that Virgin
Islanders will be considered for employment and that training will be
provided by the bank to upgrade employees. He stressed that whenever
his bank opens a branch in any community, its commitment is to become
an integral part of that group.
If there were any adverse feelings towards the applicant, they
were dispelled by the close of the meeting due to the adept handling
of the question and answer period by Mr. Ledesma.
Several private citizens appeared at the hearing and spoke
favorably for the bank and the services they felt it could render,
especially on St. Croix. The Board, through this medium, was provided
with insight of the public's feelings regarding the new applicant, and
they were also afforded the opportunity to satisfy their own curiosities
and misgivings, if any existed. The Members were able to elicit firm
commitments from the President that the same type of individualized
service offered in Puerto Rico and other areas in which they operate
will be granted to clients here in the Virgin Islands.
At the conclusion of the Public Hearing on St. Thomas, the Board
met in Executive Session and voted unanimously to grant approval to
Banco Popular de Puerto Rico, to operate a banking business in the U.S.
Virgin Islands. This is a Puerto Rico based corporation with 110
branches in operation there and several on the mainland, two of which
are situated in New York City.
A formal Permit was issued, granting the bank approval to engage in
the banking business. At a later date, upon payment of the required
fee, the official license was granted. The first branch was opened on
St. Croix on August 17, 1981, at No. 17 Church Street, the former
location of Royal Bank of Canada. Presently, they have sixteen (16)
employees, eight (8) of whom are former employees of the Royal Bank of
Canada. Of the total employees, five (5) are native crucians. The
Board also received application from Bank of the Caribbean. This was
a proposal for the opening of a new domestic bank. The major
stockholder in this enterprise is one Dr. Leonard Bloom, a practicing
Orthodontist residing in California. The other people involved are
Mr. Gustave Danielson and Mr. Henry Wheatley of St. Thomas, Attorney
Earl Glick of Chicago, Illinois, and Mr. Carey D'Ovino, formerly a
resident of Atlanta, but presently associated with Mr. Danielson here
on St. Thomas.
Mr. Danielson appeared at the Public Hearing to make the presenta-
tion. He was questioned at length by the Board Members and members of
the public present at the hearing regarding plans of the corporation
to start an operation at a time when banks of longstanding in the area
claim business is on a decline. Questions were also directed towards
services to be rendered; financial backing; expertise in operating such
an entity; and, of most particular, the area involving a Trust Depart-
ment. The Board was somewhat apprehensive to Mr. Danielson's insistence
that the corporation will be operating a full Trust Department when
those persons with available resources to utilize such a facility are at
a minimum in the Virgin Islands. They were also concerned with the fact
that none of the principals in this corporation possess the knowledge
and expertise to manage a banking institution.
After hearing from Mr. Danielson, the Board met in Executive
Session, and the consensus was that this entity would not truly be pro-
viding full banking services. The members present at the Executive
Session voted to disapprove the application of Bank of the Caribbean.
The Applicant was so advised of the Board's action and requested
that the Board reconsider its position. They requested also that Bank
of the Caribbean be given a second opportunity to present fully their
future plans, as they were of the opinion that the Board was mistaken as
to the full potential of the corporation, as well as their commitment to
perform full banking services in the Virgin Islands.
The members again met on July 23, 1981, to re-examine the applica-
tion in light of the new facts to be submitted by Mr. Danielson, who
again appeared before the Board. Mr. Danielson felt the need to clarify
that Bank of the Caribbean had no intentions of operating offshore
branches in the Cayman Islands or anywhere else, but to provide the
Virgin Islands community, in addition to regular banking service, with
a complete functional trust department which is presently nonexistent.
The Board disagreed with the point advanced by Mr. Danielson that
trust activities were nonexistent, since the service is presently
offered, although on a limited scale.
After deliberating, the Board again voted down the application
since it felt no new evidence or supporting documentation had been fur-
nished that would influence a change of their previous action. The
final decision was conveyed to Mr. Danielson in an official document
dated September 15, 1981, signed on behalf of the Board by its Chairman,
and the Assistant Attorney General Bethel. It cited as the basic
reasoning for the denial, the following:
"...the geographical distance of the prime principals from
the Virgin Islands in assuring the proper functioning of the
bank as required by Title 9, Virgin Islands Code, Section
31 (b) (2), and
...whether the public needs justified the application of a
start-up enterprise such as the Bank of the Caribbean..."
In the closing weeks of the fiscal year, the Board received an
application for a Small Loan Association from Virgin Islands Financ-
ing Company. This is a wholly owned subsidiary of Tri-Island Develop-
ment Corporation. The objective of the company is to operate branches
on St. Thomas and St. Croix. Notice of the applicant's filing was
served on other small loan associations presently operating in the
islands, and comments from them were solicited.
Due to the late receipt of the application and the need for other
pertinent information, hearings will be scheduled in the new fiscal
At mid-point last fiscal year, because of the passage of Public Law
96-221 by the United States Congress, the Usury Laws of the Virgin
Islands were temporarily preempted. The theory advanced was deregula-
tion of rates charged by monetary institutions to induce competition
among them so that money would be made available for mortgages. The
Federal Reserve kept a tight rein on the market and as a result, lending
was minimal. Many of the institutions expressed concern over the cost
of money from the Federal Reserve against the low yield of their
mortgage portfolios. The general consensus among lending institutions
was that a more innovative program will have to be introduced to replace
the old method of handling. For example, adjustable mortgages or some
alternate plan whereby mortgages may be renegotiated prior to maturity
of the loan.
On March 18, 1981, the Fourteenth Legislature passed a new Usury
Law which was approved by the Governor on April 1, 1981 (Act No. 4537).
It provided for maximum rates to be charged by lending institutions in
the Virgin Islands. The law will expire on March 31, 1982. The basic
difference in this and prior law is the increase of the allowable
percentage point from 1 to 1 1/2 on priority mortgages. On first pri-
ority mortgage loans on real estate where the loan amount is $100,000 or
less, the maximum rate is set at a base of 9 1/2 percent or not more
than 1 1/2 percent greater than the New York Federal Reserve Discount
Rate applicable on the date the borrower signs a letter of commitment,
or whichever is greater. In cases where the amount loaned exceeds 70
percent of the purchase price, 1/4 or 1 percent may be added; and when
the term of the loan exceeds 20 years, an additional 1/4 of 1 percent is
added to the total rate charged. Surcharges and fees or any other form
of penalties for prepayment of all part of the loan balance are
During this fiscal year five hundred ten (510) priority mortgages
were issued by lending institutions totaling $34,267,403.55 as follows:
Period No. of Loans Totals
4th Quarter, 1980 147 $ 9,526,425.00
1st Quarter, 1981 113 7,610,036.55
2nd Quarter, 1981 109 6,821,867.00
3rd Quarter, 1981 141 10,309,075.00
The rates on mortgages fluctuated from 10 1/2 percent to an all
time high of 18 percent by the end of the fiscal period. Terms varied
from 1 year to 30 years. Because of the high interest rates mortgages
dropped off considerably, and this year's figure fell approximately 91
percent below the dollar amount reported last fiscal year. The number
of loans made during this period showed a difference of one hundred
thirty-seven (137) from loans made within the same twelve-month period
last year. Added to the already acute situation was the fact that homes
were being placed on the market at exorbitant prices.
Small consumer loans, set by law at a maximum of $1,500, were
made by three licensed small loan companies during the fiscal year
as indicated below:
Period No. of Loans Amount
4th Quarter, 1980 3,097 $ 4,289,947.00
1st Quarter, 1981 1,385 1,807,735.00
2nd Quarter, 1981 1,701 2,264,701.00
3rd Quarter, 1981 1,583 2,021,632.00
Although the overall total number of loans made this fiscal year
was 2,668 less than last year, the total dollar amount exceeded that
which was reported last year by more than 100 percent. A consolidated
Balance Sheet of all three Small Loan Companies, as of December 31, 1980
CONSOLIDATED BALANCE SHEET OF ALL
SMALL LOAN ASSOCIATIONS FOR THE
U.S. VIRGIN ISLANDS AS OF
Less Unearned Finance Charges
Less Reserve for Credit
FIXED ASSETS, at cost less accumulated
depreciation and amortization
LIABILITIES AND SHAREHOLDER'S EQUITY
DUE TO FINANCE COMPANIES
TOTAL LIABILITIES & SHAREHOLDER'S EQUITY
GOVERNMENT OF THE VIRGIN ISLA::DS, DIVTSION OF BANKING
ST. TIO!;-AS, VIIRGIN ISI.ANS
CONSOLIDATED REPOrT OF CO'NDrTTON
AI.T. BANKS; To Tqli VIIRGrIN VILA:NDSf
Cash & 3De from Banks
U.S. Treasury Securities
Obligations of Other U.S. Gov't. Agencies & Corp.
Obligations of State and Political Subdivisions
Federal Funds Sold & Securities Purchased under
Agreement to Resell
Reserve for Possible Loan Losses
Bank Premises, Furn. & Fixt. & Other Assets
Real Estate Owned Other thnn Bank Prriises
invest.mnts in Subsidiaries & Associated Co.
Customer's Liability on Acceptances Outstanding
Demand Deposits of Individuals, Partnerships & Corp.
Time and Savings Deposits of Individuals, Partner-
ships & Corp.
Deposits of U. S. Government
Deposits of State and Political Subdivisions
Deposits of Foreign Gov't & Official Institutions
Deposits of Commercial Banks
Certified and Officers Checks, etc.
Total Demand Deposits
Total Time and Savings Deposits
Federal Funds Purchased & Securities Sold under
Agreement to Repurchase
Other Liabilities for Borrowed Money
Acceptance Executed & Outstanding
Preferred Stock Total Par Value
Co;onr Stock Total Par Value
Piscrves for Contingencies and Other Capital Reserves
Total Capital Accounts
TOTAL LIABILITIES, AnD CAPITAL ACCOUNTS
December 31 1_80
| 838:834,000. 0
eccombcr 31, 1979
Total Assets as shown in the consolidated figures for the banks
marked a low of $1,026,963,000, which is a decrease of $722,497,000,
down 41% from December 31, 1979 reported totals. Total Liabilities
decreased by 40% in 1980, as compared to a 21% increase in 1979.
Loans decreased in 1980 by 70%, a difference of $897,220,000.
Demand Deposits increased by 7%, a difference of $6,927,000 over 1979,
while Time and Savings Deposits showed a decrease of $551,394,000, down
Grand Total for deposits had an overall decrease of $436,015,000,
down 31% for Calendar Year 1980.
COMPARATIVE CHART COLLECTION ACTIVITIES
DIVISION OF BANKS
FY-81 FY-80 FY-79
Annual License Fee Foreign Banks $3,000 $3,000 $3,000
Annual License Fee State 1,000 -0- -0-
Chartered Branch Bank
Filing Fee Renewal Small Loan Co. 1,600 1,600 1,200
Filing Fee Original Small Loan Co. 400 400 400
Change of Resident Agent 25 25 -0-
Sale of Booklet -0- 7 -0-
Copy of Documents 1 -0- -0-
$6,026 $5,032 $4,600
TO: Lieutenant Governor
RE: Summary of 1981 Collections and Deposits
I am pleased to transmit herewith a listing of Total Summary
Collections and Deposits for Fiscal Year October 1, 1980 to September 30,
1981, for the District of St. Thomas-St. John and St. Croix General Fund
and Special Fund, together with a comparative analysis for Fiscal Year
July 1, 1979 to September 30, 1981.
Grand total combined collections under the General Fund Bank #1 for
the Fiscal Year October 1, 1980 to September 30, 1981, for the District
of St. Thomas-St. John and St. Croix amounted to $1,765,580.16. Please
note a total increase of $72,709.16 over last fiscal year.
Similarly, a combined collection deposited in Special Fund Bank #2,
for Fiscal Year October 1, 1980, to September 30, 1981, was $15,445.32
which reflects an increase of $2,476.32 compared to Fiscal Year 1980-1981.
OVERALL GRAND TOTAL
COMPARATIVE ANALYSIS FOR FISCAL YEARS JULY 1,
1979 to SEPTEMBER 30, 1981
SALE OF REVENUE STAMPS
SERVICE OF PIOCESS
NOTARY PUBLIC COI ISSIONS
CORPORATE FEES & MISCELLA\IDYJS
PENALTIES on late Franchise Ta.x
PUBLICATIONS Sale of Bcoks 832
DIVISION OF CORPORATIONS AND TRADE NAMES
The legal framework of corporate structure as well as trade names,
and their practice in the Virgin Islands falls under the jurisdiction and
guidance of the Lieutenant Governor.
Governed by the provisions of Title 13, which sets forth corporate
laws, and by Title 11, which deals with Trade Names businessmen as well
as government officials, industrialists and interested members of the
public, are frequently researching the available resources.
For some time the administration has fought for means of expanding
the office space to accommodate more staff as well as equipment in keeping
with the growing number of businesses. To accomplish this end, the divi-
sion acquired a vacant room adjacent to the previous site, with the
relocation of the Tax Assessor's Office. In addition, we also received
three new typewriters, two desks, four secretarial chairs and four file
cabinets. A stamp-in-clock was also purchased. The division has employed
two new members, one permanent and one on a temporary basis. A second
permanent position was created for the section; however, we were unable
to recruit a suitable person for the job.
In hopes of fulfilling this goal, we are requesting the Governor as
well as the Legislature to reestablish the position in the budget. Truly,
we are in need of someone to work with the provisions of Section 371, 373
and 531 of Title 13, Virgin Islands Code. This person, with some knowledge
of accounting, may greatly assist us in enforcing proper filings of annual
reports, financial statements and franchise taxes. They would also keep
abreast of notifying delinquent corporations of their status with the
Government, thus encouraging the income of revenues.
To carefully monitor the activities of businesses as well as
assist the public with technical matters, legal aid is required. While
we do not have the need for a full time attorney, we anticipate that if
future legal counsel is brought in for other divisions of the Lieutenant
Governor's Office, services would be rendered to this division. In the
meantime, we continue to depend on assistance from the Attorney General's
One of the division's goals is to have a revision of the annual
report and the franchise tax report providing one date for the required
filing, thereby reducing the burden of the taxpayer as well as simpli-
fying the matter. This, of course, requires amended legislation and
careful consideration. This is not the only need requiring legislation.
There are other areas for revision, filling present gaps in the law
and still others to clarify certain laws.
For the purpose of establishing a more efficient account of revenues,
efforts were devoted to a daily basis of checking and balancing with the
cashier, followed by monthly reports.
During the month of June we were happy to attend a Basic Supervisor
Seminar for one week, at the College of the Virgin Islands. This proved
beneficial and refreshing, especially in improving the working relation-
ship of the office. We are looking forward to having more of these
programs wherein all employees may participate in enjoying the upbuilding
In reviewing the 1980 Fiscal Year, we find a decrease in the
registration of Virgin Islands Corporations and an increase in foreign
corporations. Trade Names showed a decrease. For further statistics,
we present the following chart:
COMPARATIVE CHART ON CORPORATE ACTIVITIES
Oct. 1, 1979 to Sept. 30, 1980
ITEMS PROCESSED Foreign Domestic Non-Profit
Oct. 1, 1980 to Sept. 30, 1981
Foreign Domestic Non-Profit
Certificates of Incorporation
Certificates of Amendments
Certificates of Merger Agreement
Revocations of Authority
Stockholders Consent of Dissolution
Surrender of Corporate Rights
Corporations and Trade Names
Franchise Taxes & Penalties
LEGAL PUBLICATION DIVISION
The Publication Division is responsible for the storage, sale and
reordering of all legal publications. Legal documentation received
from Legislative, Judicial, and Executive proceedings are sent to the
Equity Printing Company, which is the publishing company contracted to
print these materials into books, pamphlets and slip laws. These
publications are then returned to the Lieutenant Governor's Office for
sale, through the Publication Division.
Revenues totaling $15,445.32 were collected from publications sold
in Fiscal Year 1981. Virgin Islands Code books and supplements have
been, in the past, and remain in the greatest demand.
A consistent reordering policy is needed at this time, especially
for V.I. Code books. As previously indicated in Monthly reports, there
is a need to reorder Volumes I, IA, 2, 2A, 4, 5 and 5A. Also, the
Labor, Election, Corporation and Zoning Laws pamphlets require revision.
Additional space has become a reality with the removal of a large
number of outdated and overstocked publications. These publications are
in the process of being transferred to microfilm. The microfilm machine,
formerly in the Recorder of Deeds office, has been placed in the Publi-
cation Division. The employee responsible for microfilming also gives
assistance in the Publication Division.
For greater security, new doors and locks were installed.
Goals for next fiscal year include the transferring of all legal
publications from barge "Miss Opportunity" to the Lieutenant Governor's
Office. A large percent of these publications that are overstocked will
be made available to the public at lower rates. Plans are being made to
obtain a micro-computer to assist with inventory and record keeping.
Peak sale months coincide with the arrival of supplenients to the
V.I. Code from Equity Publishing Company.
-DIVISION OF INSURANCE
The responsibility for regulation of the Insurance Industry in
the Virgin Islands is placed in the Division of Insurance, headed by
the Lieutenant Governor, ex-officio Commissioner of Insurance.
Authorization for the Division is found in Title 22 of the Virgin
Islands Code, and the basic objective of the Law is the protection of
the public from illegal or fraudulent acts of companies and their repre-
The Commissioner has the authority to formulate and implement rules
and regulations which will enhance and define statutory requirements to
insure financial stability in companies, thus stimulating and strength-
ening public confidence in the industry as a whole.
The Division is principally involved in the issuance of licenses to
companies and individuals that express a desire to engage in the insur-
ance business on all three islands -- St. Thomas, St. John and
St. Croix. It is also engaged in approval or disapproval of company
policy forms, and the investigation of consumer complaints. The staff
also administers examinations to individuals seeking to become licensed
to insure they possess sufficient basic knowledge of the product they
will be offering for sale as well as fundamentals of the provisions of
the Insurance Code.
In the middle of the fiscal year, Mr. Rudolph E. Krigger, Director
of Banks and Insurance, resigned his post to take up full-time employ-
ment with the Virgin Islands National Guard. At the close of the year
his position remained vacant.
Mrs. Janet R. Humphrey, one of our tenure employees, passed away
after a brief illness, during this fiscal year. She had been employed
in the office of the Lieutenant Governor for the past 18 years, spending
10 of those years in the Division of Banks and Insurance.
An in-house promotion was effected and Miss Lillian Garfield, who
has been with the Division since 1972, was chosen to fill the vacancy
Miss Wynn Canton, who was employed as a substitute clerk for
several months, was given a permanent appointment as Complaint Clerk.
The Division Staff consists of:
1 Administrative Assistant
1 Administrative Officer
1 Complaint Clerk
1 Assistant Examiner (Shared with Banking)
Despite the size, the staff maintains the flow of office activities
especially during the period from October through April when license
renewals, premium tax and other required filings and reports become due.
Close contact is maintained with the National Association of Insurance
Commissioners which renders oversight assistance by providing early
warning financial status reports on companies licensed in our juris-
diction. In the absence of our own examination team, these reports
provide much needed information to our agency.
Seventy-six complaints were filed with the office and were followed
through by staff members. Sixty-seven of these were resolved by the end
of the fiscal period; two remained unresolved; and seven were withdrawn.
Four of the claimants who withdrew advised this office they would pursue
the matter further with the assistance of legal counsel.
Many complaints involved a length of time to settle. However, the
problem that surfaced most frequently was disagreement between adjuster
and claimant as to what constituted a fair settlement, especially when
it involved repairs and replacement of parts in damaged vehicles. There were
initial disagreements over the estimates provided. The adjuster con-
sidered them excessive and refused to settle or present lower figures
based on his own knowledge or those prepared by another repair shop, and
made unsubstantiated charges of price-fixing among friends. The
claimants felt this was an infringement on their right of choice. They
also felt that damaged parts could not be replaced for the extremely low
price quoted by the adjuster. The Division's personnel are frequently
caught in the middle of two forces with no set provisions or rulings by
which a determination can be made, and our efforts are purely
discretionary. To equip the office with some basic tool, a subscription
was taken out for the "Red Book" which provides full replacement values
of used vehicles by make, year and model. It has proven helpful in
determining the true value of a claimant's vehicle when considered a
"total loss". By having this at our disposal we were.able to assist
claimants in getting the best possible offer on replacement claims.
What may prove to be of greater aid would be some exposure to the basic
principle of adjustment as applied by the adjusters.
Within this fiscal year rules and regulations entitled "Unfair
Claims Settlement Practices" were drawn up and forwarded to the Office
of the Attorney General for review prior to official publication and
adoption. With the adoption of these rules and regulations, time limits
will be set in which claims should be investigated and settled; and it
defines responsibilities of the parties involved which should narrow
considerably those areas of disagreement which now.exist.
Licenses are issued and renewed on a calendar year basis. One
hundred seventy-one companies including two non-profit corporations were
licensed during the fiscal year. Of the total amount, fifteen were new
admissions. They are as follows:
1. American Heritage Life Insurance Company
2. American Travellers Life Insurance Company
3. American Variable Annuity Life Assurance Company
4. Bankers National Life Insurance Company
5. First General Insurance Company
6. First Variable Life Insurance Company
7. Ideal Mutual Insurance Company
8. INA Underwriters Insurance Company
9. Indemnity Insurance Corporation of North America
10. Investors Life Insurance Company of North America
11. Inter-State Assurance Company
12. ITT Lyndon Life Insurance Company
13. Life and Health Insurance Company of America
14. Midland Insurance Comapny
15. Navajo Life Insurance Company
The companies listed below filed all required documents and paid
the admission fees; however, processing of the documents for licensing
was suspended at the request of the companies:
1. American Amicable Life Insurance Company
2. Republic National Life Group Insurance Company
3. XYZ Life Insurance Company
During the fiscal year three companies changed their corporate
names as follows:
1. Occidental Life Insurance Company of America
changed to TransAmerica Occidental Life Insurance Company
2. BVI Insurance Limited changed to International Guaranty
3. Title Guarantee Company changed to Safeco Title Insurance
Company of Maryland
Two companies withdrew from the Virgin Islands during the current fiscal period:
1. Royal Insurance Company the company stated they reached the decision due
to adverse results experienced in the Virgin Islands and the fact that the under-
lying conditions seem unlikely to improve within the foreseeable future.
2. Chelsea Title & Guaranty Company the company's business in the area has
always been minimal; therefore, they have decided to discontinue active solicitation
in this jurisdiction.
Five hundred eighty-three individual licenses were issued in the following
ITEM 1981 1980 1979 1978 1981 1980 1979 1978
General Agents 11 4 -0- 4 21 19 22 21
Insurance Agents 35 29 32 36 187 174 172 185
Solicitors -0- -0- -0- -0- 4 5 5 6
Nonresident Agents 14 8 14 8 4b 46 33 36
Nonresident Brokers 4 6 7 9 43 39 38 33
Surplus Line Brokers 1 1 -0- -0- 8 7 8 7
Resident Brokers 4 4 5 9 29 33 28 22
Adjusters 7 4 3 7 19 17 18 14
Apprentice 151 98 82 100 Non-renewable
227 154 143 173 357 340 324 324
One agent's license was revoked based on information furnished by his company
that funds were used for his personal benefits. He was served notice to appear in
a hearing to show cause; however, he requested that the hearing be waived, and
promised to repay the funds to the company.
The office refused to renew the license of one resident broker based on miscon-
duct and misuse of funds placed in his fiduciary trust. Approximately 15 insureds
reported having paid him full premium amounts to secure insurance coverage on personal
property, only to be later served cancellation notices by companies for non-payment,
or to learn they had no coverage when they became involved in a mishap. Part-payments
of the premiums were made in some instances, and in others the business was never
placed at all. He was ordered to appear before the Commissioner of Insurance to show
cause in revocation proceedings. Preliminary hearings were held, at which charges
brought against him were read. Since the violation under the Insurance Code is
punishable by a small fine of not more than $250.00, the Attorney General was directed
to gather additional evidence to submit to the District Attorney in order that crimi-
nal charges could be brought against him. However, having prior knowledge he absconded.
One hundred twenty-nine examinations were administered during the fiscal year.
One thousand six hundred thirty-three policy forms were approved for use by
companies licensed to conduct business.
All companies licensed were requested to increase their deposit for policyholders
in the Virgin Islands to a minimum of $100,000. The law stipulates a minimum of $20,000.
However, the justification advanced by the Commissioner was the total business written
by the companies; also, a guaranty fund is non-existent at this time from which claims
may be paid should a company encounter difficulties.
For the past two fiscal years status reports were given on claims filed with the
Commissioner of Insurance in Puerto Rico, Liquidator of the now defunct Commonwealth
Insurance Company. In the early months, the Liquidator and Director of the Guaranty
Fund in Puerto Rico were in dispute over which agency had jurisdiction over certain
claims, especially those involving cross-over and reinsurance payments. During the
period of litigation to clarify the dispute, simple cases were investigated and paid
by the Guaranty Fund to Puerto-Rican residents. However, to date, none of the Virgin
Islands claimants has been given any consideration for payment either by the Liquidator
or the Guaranty Fund, and we have been merely advised that the matter has not been
finalized regarding claims filed by Virgin Islands policyholders.
Because of the delay and uncertainty as to a date for settlement, the Attorney
General's Office was requested to review the cases. They will be reviewing claims
filed in an effort to determine which ones are proven and which, if any, need be
challenged. When this is completed, a determination will then be made as to what
percentage of the total deposit each claimant will be entitled to, since the amount
paid with the Commissioner is small. The original deposit was $50,000. The review
had just commenced within the closing days of the fiscal year; therefore, it will
be sometime before actual claim amounts may be determined and payments made.
Last fiscal year the Virgin Islands became eligible under the Regular Phase of
the Federal Flood Insurance Program. By way of Public Hearings, the agents and
brokers and the general public were informed of this eligibility. In addition, our
bouts with hurricanes Frederic and David were eye-openers for the home owners as to
the need for such coverage. This type of coverage is offered through the Federal
Emergency Management Agency and applications are processed through local licensed
agents or brokers. During the month of March, when St. Croix experienced heavy
rainfalls, several home owners in the Mon Bijou area made inquiries concerning
the availability of this type of coverage.
At the end of the fiscal year the Federal Agency had sold one thousand nine
hundred seventy-nine flood insurance policies to Virgin Islands residents with a
dollar value of $57,592,800. The figures were not available on a island-by-island
With the high incidence of crime in our jurisdiction, the rates on this type
of coverage on the normal market has risen considerably both for home owners and
businesses. During the last fiscal year the low-cost federal crime insurance was
made available to the Virgin Islands, and through this medium some degree of relief
was afforded to those who were unable to purchase the coverage on the open market.
Total crime policies sold in the Virgin Islands during the fiscal year are as follows:
Amount of Premium
Policies Dollar Value Collected
Commercial 37 $423,000.00 $26,179.00
Residential 28 244,000.00 2,090.00
Seven (7) claims were paid which amounted to $22,873.00.
The Division's staff provided advice and assistance to the public by respond-
ing to 1,523 telephone inquiries, 514 persons who visited the office, and also via
Companies reported a total volume of business of $39,304,347.81, which reflects
an increase of $3,149,999.03 or 91 percent. The premium taxes collected this fiscal
year amounted to $787,935.09 which represents an increase of $64,676.74 or 91 percent
over that reported last fiscal year.
VOLUME OF BUSINESS
PREMIUM TAXES COLLECTED
Of the overall totals, business placed through the Surplus
to $55,091.00, and generated a premium tax of $1,101.82.
Comparative tables of collection activities follow:
Lines Brokers amounted
Certificates of Authority (Reg.)
Certificates of Authority (N.P.)
Surplus Line Brokers
COMPARATIVE TABLE OF COLLECTION ACTIVITY
Renewal Original Renewal
$5,850.00 $ 450.00 $5,550.00
$ 150.00 $5,437.50
O T H E R F E E S
Premium Taxes $ 787,935.09
- Annual Statements (Reg.)
- Annual Statements (N.P.)
- Charter Documents
- Power of Attorney
- Amendment to Licenses
- Certified Copies
- Xerox Copies
- Appointment of Agent & State-
ment of Agreement to Serve
- Amended By-Laws
- Amendments to Articles of Incorp.
- Solicitation Permit
Issuance Solicitation Permit
Sale of Booklets
Certificates of Good Standing
Certificates of Deposit
The Division of Banks and Insurance was moved to new quarters situated within
the main structure of the office which were previously occupied by the Tax Assessor's
Office. It provides more work space than the previous quarters; however, it can
be rather uncomfortable during extremely hot days, despite the fact that the office
is located on the third floor. Also, when it rains the employees are forced to
close the windows and cut off the outside air.
Inside shades are needed for protection from the sun on the eastern side in the
early morning, and from the south in the afternoon. Only one has been provided thus
far, although the problem was made known.
Three IBM typewriters were replaced, two of which were in use over ten years.
The old desks which had been in use since 1961 and earlier were also replaced, and
the chairs which were badly in need of repairs were re-upholstered.
Pursuant to the provisions of Chapter 29, Title 3 of the Virgin
Islands Code, the Governor of the Virgin Islands is authorized to
appoint and commission all public notaries, not exceeding 250 in number.
The Office of the Lieutenant Governor is charged with the administration
of all functions relating to this sphere of activity, including all
paper work, record-keeping and files, etc.
In addition to public notaries provided under this title, the
Governor may empower employees of the Virgin Islands Government, not
exceeding forty (40) in number, to take acknowledgments and administer
oaths and affirmations on matters of official business of the Virgin
Islands Government or the Government of the United States, and no fees
for such acknowledgments and oaths or affirmations shall be charged.
Section 801 of Title 3, Virgin Islands Code, is the applicable statute
in this respect.
The Virgin Islands Code also permits various judicial officers, the
Registrar and Deputy Registrars of Vital Statistics of the Department of
Health, each official reporter of the Legislature of the Virgin Islands,
as well as the Executive Secretary of the Legislature of the Virgin Islands,
to be appointed as ex-officio notaries public.
The demand for public notaries continues to grow, and there is presently
existing a sizeable waiting list of persons interested in becoming public
notaries throughout the Virgin Islands. Presently, there are 204 public
notaries in the territory. Vacancies now exist since the statute provides for
250. Forty (40) government employees hold the designation of Government
Notaries Public, and this figure represents full subscription to the quota
allowed by law.
TRADEMARKS, PATENTS AND COPYRIGHTS
Trademarks, Patents and Copyrights are registered in the Virgin
Islands pursuant to the Governor's Rules and Regulations promulgated on
June 11, 1959, as amended by the Governor on September 15, 1972. The
Office of the Lieutenant Governor is responsible for issuance of all
certificates of registration, files, and correspondence in this sphere
of activity. Applicants may register their marks, copyrights or patents
at their option in the Virgin Islands, but they must first have been
registered within the United States Patent Office in Washington, D.C.
During the Fiscal Year 1981 there were forty (40) trademark actions
recorded in the Lieutenant Governor's Office. They are broken down as
16 Original Registrations @ $20.00 each.................$320.00
19 Renewals @ $17.50 each..............................332.50
5 Assignments @ $20.00 each............................100.00
There was collected an amount of $2.50
representing the difference on applicable
fee for an assignment....................................... 2.50
A British Company sent an extra $0.15 on an
Original Registration fee................................... .15
Grand Total Collections........$755.15
Significant of this fiscal year is the fact that all notarial
records have recently been put on microfilm, thus allowing for much
needed filing space within the Administration Division.
Pursuant to the provisions of Section 771, Title 3, Virgin Islands
Code, seventy-six (76) notary commissions were issued during the fiscal
year. (This figure includes members of the Virgin Islands Bar).
They are broken down as follows:
One commission was paid for, but has been held over and is
presently in a pending status.
There were five (5) Government Notaries Public commissions issued
during the fiscal year pursuant to the provisions of Section 801,
Chapter 29, Title 3 of the Virgin Islands Code. In addition, two
notaries were appointed for the island of St. John (Cruz Bay area)
pursuant to the provisions of Section 805(b) of Title 3 of the Virgin
Islands Code, and the Executive Secretary of the Legislature was
appointed an Ex-Officio Notary pursuant to Section 771 of Title 3,
Virgin Islands Code, as amended.
Cancellations were as follows:
Public Notaries ................. 14
Attorneys ....................... 6
Government Notaries............... 2
Total fees collected for notarial activity during the fiscal year
was $3,075.00, itemized as follows:
77 Four-year Commissions at $20.00 each....$1,540.00
307 Annual License fees at $5.00 each....... 1,535.00
Total Fees Collected......$3,075.00
SERVICE OF PROCESS
Summonses and complaints may be served on the Lieutenant Governor
of the Virgin Islands pursuant to the provisions of Section 348, Title
13, Virgin Islands Code, which carries a $5.00 fee, and of Section 543
of Title 20, Virgin Islands Code, which carries a $2.00 fee.
During the Fiscal Year 1981, the Lieutenant Governor was served with
Summonses under the above provisions of law as follows:
Section 543, Title 20, Virgin Islands Code
26 Summonses @ $2.00 each...................$ 52.00
Section 348, Title 13, Virgin Islands Code
11 Summonses @ $5.00 each... .............. 55.00
SERVICE OF PROCESS CONTINUED
The summonses are served by Marshals of the Territorial Court of the Virgin
Islands. In the case of summonses served pursuant to the provisions of Section 348
of Title 13 of the Virgin Islands Code, copies of the papers are forwarded to the
Resident Agent of the Defendant corporation via registered mail. In the case of
summonses served pursuant to the provisions of Section 543, Title 20, Virgin Islands
Code, an acknowledgment is forwarded to the Attorney for the Plaintiff. Both types
of summonses are entered in a Process Book which is maintained in the Lieutenant
Governor's Office for such purpose.
ACTS AND RESOLUTIONS OF THE LEGISLATURE OF THE VIRGIN ISLANDS
The Office of the Lieutenant Governor is charged with the assignment of Act
Numbers to enactments passed by the Legislature of the Virgin Islands and approved
by the Governor. Distribution of these laws are made to the various executive
departments and instrumentalities of the government to serve as source of informa-
tion. This office is also charged with forwarding these enactments to Equity
Publishing Corporation of Orford, New Hampshire (Publishers of the Virgin Islands
Code) for printing in slip law form and for inclusion in the Session Law Volumes.
The office also serves as the depository for filing of all original acts and
resolutions in addition to tiling and storage of the slip laws and session law
During Fiscal Year 1981, there were 137 Acts passed by the Legislature and
acted upon by the Governor as follows:
BECAME LAW WITHOUT APPROVAL........ 11
LINE ITEM VETOED .................. 5
Seven bills were returned to the Legislature, without approval, accompanied
by veto letters of transmittal.
Thirty-three (33)Resolutions were acknowledged by the Governor during Fiscal
EXEajTIVE ORDERS AND PROCLAMATIONS
There were fifty-three (53J Proclamations issued by the Governor of the
Virgin Islands during Fiscal Year 1981. During this same period the Governor
issued nine (9) Executive Orders.
The Office of the Lieutenant Governor is charged with the responsi-
bility of screening, approving, rejecting and processing all U.S. Passports
filed through the U.S. District Courts of the Virgin Islands on St. Thomas
and St. Croix. The Department of State in Washington, D.C., makes final
determination of eligibility whenever the Virgin Islands Passport Office
cannot readily resolve eligibility.
During Fiscal Year 1981 a total of 4,921 original U.S. Passports
were issued. The summer months continue to be our peak months for activity
with the months of June, July and August with totals of 633, 730 and 824
respectively. The overall total shows a 14% increase in applications.
This increase is due to the demand for passports when entering even the
British Virgin Islands. Many naturalized citizens also account for this
Passport Fees were increased on February 12, 1981, from $14.00 to
$15.00 for all persons filing for the first time, minor children, and
applicants applying for replacement passports. The renewal fee remains
The fraud rate continues to increase. We have been unsuccessful in
our attempt to use the TWX Line for clearance due to high cost of installa-
tion and no Federal Agency available for us to piggy back into. However,
we are optimistic that maybe when the Federal Government economic
situation is not so restraint, we will be able to get the TWX Line.
Positive steps have been taken to relocate the Passport Office to a
larger area. We were hoping it would have been by the completion of Fiscal
Year 1981 but due to some repairs, we were detained in our present area
pending completion. Our customers should be proud of our new location
The Basic Management Skills and Management Planning Seminar given
by the Bureau of Public Administration through the College of the Virgin
Islands was attended by the Supervisor of Passports Division. This course
is given in series, and a third and fourth would be made available to all
participants of the first two series. The third in the series should be
of particular interest since it will cover the objectives, goals and
evaluations. That series will assist us in setting priorities and
objectives through proper planning and evaluation of workload. Each
seminar was for three days in duration.
We have been able to process all passports applications approved for
issuance within 10 working days from the date received in our office with
allowance being made for justifiable emergencies.
The following table shows passport activity for the past five years:
1977 1978 1979 1980 1981
Issued 3,418 3,252 4,726 3,492 4,921
Amended 13 12 45 41 39
Extended 23 25 13 15 12
Limited 24 8 12 27 18
$44,161** $38,519** $20,038"* $46,685** $44,925****
910* 1,940* 33,082** 10,010***
6,640* 8,970* 13,620*
**** This figure represents books at $15.00.
*** This figure represents books at $14.00.
** This figure represents books at $13.00.
* This figure represents books at $10.00.
Applications Received for Fiscal Year 1981 5,167
Applications Issued for Fiscal Year 1981 4,921
Applications Pending 246
RECORDER OF DEEDS
The Office of the Recorder of Deeds operates under the supervision
of the Lieutenant Governor, who exercises jurisdiction over the filing
and recording of deeds and other instruments relative to real property.
The Recorder of Deeds, for the District of St. Thomas-St. John,
performs the duty of recording documents as outlined in Title 33,
Section 2362 of the Virgin Islands Code. This section of the law pro-
vides for the transfer of real property or interest thereon, mortgages
and other securities for debt secured by real property. The Recorder
also performs the functions provided in Title 28 Chapter 7, Section 134
of the Virgin Islands Code, Title IIA of the Uniform Commercial Code
and the duties as outlined in the Condominium Act of 1965.
Because of the Construction Lien Act of April 29, 1976, many people
who were experiencing difficulty in collecting monies for construction
purposes are now using this method as a means of collecting outstanding
balances due them. A total of sixty-five (65) Liens have been filed for
this fiscal year.
Revenues collected on condominiums and related documents have
increased in the amount of $1,805.49; UCC and related documents have
decreased by $950.95; Xerox copies have decreased by $831.65 and Letters
of Certification have decreased by $340.00 as compared to last fiscal
Our business activity for this fiscal year is reflected in the
following Comparative Analysis. We have shown comparative figures for
five (5) consecutive years.
A total of 8,568 documents have been recorded, indicating a
decrease of 2,005 documents.
Documents, mortgages, etc., were decreased
by 523 documents.
Condominium and related documents were
decreased by 144.
A decrease of 668 documents is shown in the UCC Section of this
department. A total of 1,715 Xerox copies issued for this fiscal year
shows a decrease of 545 copies compared to last fiscal year. Similarly,
Letters of Certification decreased by 85 over 1980.
Since the sale of Internal Revenue Stamps began in 1975 by this
office, each year the sales have increased. As you will note from the
Comparative Analysis which follows, a total of 6,285 stamps have been
sold this year, netting an amount of $421,798.66, an increase of
$44,976.04 over 1980. You will also note that the General Fund has been
increased by $16,871.95. This amount would have gone to the banks in
commission at 4% of the overall total.
Six hundred ten thousand four hundred forty dollars and sixteen
cents ($610,440.16) has been collected in revenues for Fiscal Year 1981,
indicating an increase of $10,781.51, over last fiscal year.
A listing of all documents and revenues collected for the period
of October 1980 to September 30, 1981, is as follows:
3,048 Documents $119,731.60
1,186 Condominiums & related documents 57,777.59
2,888 UCC & related documents 6,517.25
1,715 Xerox copies 3,557.65
193 Letters of Certification 772.00
65 Construction Liens 285.50
6,285 Internal Revenue Stamps 421,798.66
GRAND TOTAL REVENUE COLLECTED................$610,440.16
NON REVENUE DOCUMENTS
Title 28 Section 134 of the Virgin Islands Code and the Stamps Tax
Law under Title 33, Section 128 provides that documents issued to and
from the United States or the Government of the Virgin Islands, or any
instrumentality thereof shall be exempt from Recording and Stamp Fees.
A listing of these documents as recorded will follow. A total of 1,712
documents were recorded. This total document should have netted in the
area of $21,465.25.
Six thousand four hundred fifteen (6,415) Xerox copies of docu-
ments, free of charge, were issued to various offices for use of the
Government, such as the Office of the Governor, Department of Property
and Procurement, Department of Law, etc.
The law recently passed by the Legislature, empowering the
Employees Retirement System to grant car loans has been temporarily
suspended; however, a total of 192 such loans were recorded during this
Below is a breakdown of the number of Mortgage Loans made by each
bank and other lending institutions during Fiscal Year October 1, 1980,
to September 30, 1981:
LOANS TO INDIVIDUALS
No. Banks Mortgage Amount
267 Chase Manhattan Bank $25,802,765.00
172 First Pennsylvania Bank 9,455,995.31
59 Bank of America 6,826,606.27
38 Barclays Bank 6,104,800.00
3 Citi Bank 487,500.00
11 Bank of Nova Scotia 461,721.44
5 1st. Federal Savings & Loan Assoc. 235,500.00
555 TOTAL BANK LOANS .....................$49,374,888.02
LOANS TO INDIVIDUALS CONTINUED
No. Other Institutions Mortgage Amounts
319 Personal Loans $ 18,157,654.56
112 Farmers Home Administration 2,917,540.00
122 Employees Retirement System 2,690,518.00
1 V.I. Port Authority 1,910,120.00
22 Small Business 535,779.95
24 V.I. Housing Authority 161,994.53
13 Housing & Community Renewal 136,000.00
M TOTAL LOANS.................................. $26,509,607.04
1,168............. GRAND TOTAL LOANS .................$75,884,495.06
The above loans contributed to the business activity of this office
and to the economy of the Virgin Islands. The total bank loans were
decreased this fiscal year by 98 loans, and the total revenues granted
were decreased by $3,284,027.53. Other institutions' loans decreased by
35, even though revenues were increased in the amount of $6,064,085.18.
The overall grand total was increased by $2,771,057.65.
COMPARATIVE ANALYSIS OF DOCUMENTS #1
Recorded During Fiscal Years
October 1, 1980 to September 30, 1981
1977 1978 1979 1980 1981
Deeds 808 988 1,454 1,254 1,174
Mortgages 629 881 1,114 1,012 860
Subordinated Mortgages 29 21 24 22 13
Assumption of Mortgage 6 12 10 7 1
Mortgage Notes 82 137 146 232 112
Contracts 8 12 36 49 49
Cancellations & Releases 1,257 1,338 1,330 1,251 755
Partial Releases 47 113 189 160 149
Modification of Mortgage 5 3 6 1 3
Mortgage Addendum 10 11 5 7 3
Bill of Sales 6 15 11 16 --
Leases 27 36 58 49 54
Amendment of Leases - 5 4 13 3
Liens 759 606 999 579 574
Adjudications 43 39 49 45 42
Death Certificate 30 27 54 76 52
Assignments 86 93 73 73 55
Easements 67 24 15 17 63
Agreements 38 37 33 41 37
Wills 6 11 15 9 4
Affidavits 5 21 15 23 22
Power of Attorney 66 86 156 154 161
Certificate of Pur. & Sales 20 36 43 22 3
Certificate of Redemption 16 8 183 8 -
Attached Doc. & Restrictions 122 129 232 211 162
Limited Partnership 1 2 8 17 13
Miscellaneous 57 64 68 95 152
Expiration of Redemption 5 -- -- 1 --
Construction Lien Agreements 5 19 17 35 65
Security Agreement - 3 10 - -
TOTAL DOCUMENTS 4,229 4,777 6,335 5,473 4,354
Financing Statements (UCC) 1,831 2,376 3,488 2,760 2,148
Releases (UCC III) 839 894 1,034 673 627
Partial Releases 1 -- -
Attached Documents 3 1 1 - -
Agreements --- 3 1 1 - -
Requests (UCC II) 57 41 67 49 62
Assignments (UCC III) 25 14 18 15 1
Chattel Mortgages 25 248 167 137 41
1977 1978 1979 1980 1981
Continuation Statements 357 43 72 101 119
Amendments (UCC III) 27 27 5 24 5
Bill of Sale 32 1 -- -
Dontracts 2 1 1 1 -
Liens 12 -- 1 5 --
Security Agreement -- - 10 -
Leases -- --2 --
total Financing Statements 3,230 3,651 4,880 3,770 3,003
Deeds 168 194 392 357 303
Declaration By Laws 6 4 10 19 3
Mortgages 94 132 370 284 267
Assumption of Mortgages 33 35 27 12 -
iodification of Mortgage 4 5 6 2 -
Subordination of Mortgage -- 2 1 -- -
1ortgage Notes 5 8 4 9 3
Releases 58 79 164 122 138
Power of Attorney 15 57 193 188 191
Partial Releases 55 58 198 212 103
Attached Doc. & Restrictions 1 12 27 38 8
Liens 47 29 14 25 55
Agreements 1 4 1 8 17
Assignments 8 23 7 4 2
Bill of Sale -- 1 -- -
Wills 3 -- 1 -
Death Certificate 3 3 3 2 2
Certificates 2 1 3 --
Adjudication 1 -- 2 -- -
Affidavits 3 9 3 2 1
Miscellaneous (Waivers) 6 2 6 23 65
Certificate of Sale 14 3 3 15 -
Amendments 4 3 2 1
Limited Partnership - 2 -
Lease - 1 1 2
Redemption -- 2 --
Contracts -- 23
Attahments -- 27
Total Condominium 526 671 1,435 1,330 1211
OVERALL GRAND TOTAL DOCUMENTS 7,985 9099 12650 10573 8568
COMPARATIVE ANALYSIS OF COLLECTIONS
FISCAL YEARS 1977- 1981
1977 1978 1979 1980 1981
July 1, 1976 to
June 30, 1977
July 1, 1977 to
June 30. 1978
July 1, 1978 to
September 30, 1979
October 1, 1989 to
September 39, 1980
October 1, 1980 to
September 30, 1981
$53,967.53 $99,062.02 $154,119.42
Documents $ 53,967.53
Fin. Statements 6,686.50
Certified Copies 1,937.55
Letters of Certification 736.00
Construction Liens - -
$ 211,821.74 360,567.08
OCTOBER 1, 1980 to SEPTEMBER 30, 1981
Releases of Tax Liens
Cancellation of Attachments
Writ of Execution
Deeds (V.I. Housing)
Deeds (Urban Renewal)
Deeds (Property & Procurement)
Deeds (Housing & Community Renewal)
Deeds (Attorney General)
Deeds (Farmers Home Administration)
Deeds (Dept. of Finance)
Deeds (V.I. Port Authority)
Mortgages (Housing & Community Renewal)
Mortgages (Farmers Home Administration)
Mortgages (V.I. Housing)
Mortgages (Retirement System)
Mortgages (Small Business)
Mortgages (V.I. Port Authority)
Subordination of Mortgage
Attachments (Territorial Court)
Power of Attorney
Car Loans (Retirement, etc.)
Protective Covenant (Urban Renewal Board)
Agreements (Property & Procurement)
Dedication of Roads (Property & Procurement)
Mortgage (Veterans Affair)
Xerox Copies were made for the use
of other Government Offices
In reviewing the microfilm on records, there are still a number of
films that need to be replaced. We are re-typing some of the faded
documents so that the films may be readable. Two of the Recorder of
Deeds staff do the typing of these documents between their regular work.
In other instances, we will be able to have copies made from some of
the series of records at the public library.
The new filming machine installed in the Office of the Recorder of
Deeds and operated by Mr. Knight, is being used to film the records of
the Lieutenant Governor's Office; however, the processor is set up at
the Microfilm Section of the public library with the able assistance of
Mr. Moron who oversees the processing of said documents from the Office
of the Lieutenant Governor.
Space continues to be a problem in the Office of the Recorder of
Deeds, but with the renovation of our office, we hope to utilize the
space in the back room where the books are being kept, by adding some
shelves around the side thereby eliminating those large storage
cabinets. The wooden cabinets which housed the auxiliaries are filled
to capacity, and we must find space for these auxiliaries.
Our Goals for Next Fiscal Year are:
1. Preparation and processing of our microfilm
2. Continuation of re-typing faded documents
3. Re-hiring Mrs. Gundy Pedersen on a part-time basis
to continue translation of the St. Croix books.
GENERAL COMMENTS CONTINUED
This office needs two (2) more clerks, but it would appreciated
very much if one (1) clerk was given us if we can't have the two. If
we are to monitor persons handling the books in the back room and the
copying of documents, we need that extra person.
Some consideration of overtime for employees in this office should
be considered. The work load in this office continues on an increase
and all cannot be done during the regular working hours. We are
requesting that an employee be assigned full time to be in charge of
handling all matters relative to the Uniform Commercial Code Section.
The staff of this office continues to do an excellent job in main-
taining the smooth running of the office.
This office continues to receive complimentary remarks about the
efficient work habits displayed by its employees.
OFFICE OF THE RECORDER OF DEEDS
The Office of the Recorder of Deeds for the Judicial District of
St. Croix, is under the Office of the Lieutenant Governor, maintains an
Office for the recording and filing of deeds, mortgages, contracts and
other legal instruments relating to transfer and title and encumbrances
on Real and Personal Property, and other legal instruments as required
by law to be recorded and filed.
The number of such instruments presented to this office for
Recording and filing for the Fiscal Year 1980 1981 was 7,045, with
a total of fees collected in the amount of $80,549.75.
The following is a breakdown of the different types of documents as
recorded and filed:
12 Territorial Marshal Deeds 304,294.00
1,181 Deeds, etc., conveying real property 35,425,677.00
3 U.S. Marshal Deeds 1,820,000.00
3 V.I. Government Deeds 376,243.00
14 U.S. Government Deeds (HUD)
1 V.I. Government Deed
1 Small Business Development Agency Deed 22,000.00
8 Housing & Community Renewal Deeds 75,258.00
3 Veterans Administration Deeds 116,200.00
1 Housing Corporation of America Deed 20,000.00
33 Adjudications (Territorial Court) --
9 Certificates of Sale 168,371.00
42 Certificates of Redemption 252,987.00
MORTGAGES AS LOANED BY BANKS, ETC.
29 First Pennsylvania Bank, N.A.
93 Chase Manhattan Bank, N.A.
25 Bank of Nova Scotia
25 Bank of America, N.T. & S.A.
22 First Federal Savings & Loan Assoc. of Puerto Rico
3 CitiBank, N.A.
6 Royal Bank of Canada
3 Banco Popular de Puerto Rico
1 Barclays Bank International, Ltd.
1 Citizens First State Bank of Walnut
1 F.D.I.C. Receiver of People's Bank, V.I.
1 Lincoln National Bank and Trust Company
1 New England Merchant National Bank
3 Trevose Federal Savings & Loan Association
2 Veterans Administration
153 Farmers Home Administration
31 Small Business Administration
1 Housing & Urban Development
85 Retirement System, V.I. Government
17 Housing & Community Renewal
1 Small Business Development Agency
2 Government of the Virgin Islands
10 Frederiksted Federal Credit Union
PRIVATE INDIVIDUAL LOANS
200 Private Individual Loans
RELEASES CANCELLATIONS, ETC.
104 First Pennsylvania Bank, N.A. $ 3,400,925.00
83 Chase Manhattan Bank 5,904,925.00
44 Bank of Nova Scotia 1,508,237.00
21 Bank of America, N.T. & S.A. 845,900.00
10 First Federal Savings & Loan Assoc. of Puerto Rico 206,300.00
21 CitiBank, N.A. 139,338.00
10 Royal Bank of Canada 651,911.00
3 Federal National Mortgage Association 66,000.00
8 F.D.I.C. Receiver of People's Bank, V.I. 163,949.00
1 Barclays Bank International, Ltd. 60,000.00
1 First Bank of Maryland 39,500.00
1 Federal Development Corporation 18,000.00
1 Fortune Federal Savings & Loan Association 60,000.00
1 Housing Corporation of America 2,684,219.00
1 Landmark Northwest Plaza Bank 100,000.00
1 New England Merchant National Bank 105,000.00
1 U.S.A. Virgin Islands Corporation 13,600.00
7 Farmers Home Administration 267,510.00
4 Small Business Administration 92,300.00
5 Housing & Community Renewal 48,587.00
12 Retirement System, V.I. Government 221,400.00
2 Small Business Development Agency 91,000.00
3 Frederiksted Federal Credit Union 15,000.00
103 Private Individual Loans 10,247,317.00
PARTIAL RELEASES OF MORTGAGES BROKEN DOWN AS FOLLOWS:
4 First Pennsylvania Bank
11 Chase Manhattan Bank, N.A.
6 Bank of Nova Scotia
4 Bank of America, N.T. & S.A.
3 CitiBank, N.A.
3 Royal Bank of Canada
6 Trevose Federal Savings & Loan Association
2 Sarel Pacific Investors, Inc.
1 General Service Administration
17 Small Business Administration
2 Farmers Home Administration
2 Retirement System, V.I. Government
9 Private & Individual
CERTIFICATES OF DEATH
53 Certificates of Death
744 Miscellaneous Documents
46 Attach documents
TAX LIENS (Federal and Virgin Islands)
Notices of Federal Tax Liens
Releases of Federal Tax Liens
Notices of V.I. Tax Liens
Releases of V.I. Tax Liens
Partial Releases of V.I. Tax Liens
UNIFORM COMMERCIAL CODE
1,789 UCC-I $ 3,578.00
46 attach documents 87.75
157 UCC-I (no fee)
127 Information Requests 381.00
19 Information Requests (no fee)
15 Copy Request (no fee) 45.00
1 Copy Request (no fee)
153 Copies 153.00
25 Amendments 50.00
7 Assignments 14.00
158 Continuations 316.00
162 Releases 324.00
512 Terminations 1,024.00
13 Terminations & Releases (no fee)
1 Partial Release 2.00
398 Certified Copies of Documents 857.00
44 Certified Copies of Documents (no fee) -
46 Title and Encumbrance Certificates 184.00
258 Title & Encumbrance Certificates
RECORDING FEES $ 73,534.00
TOTAL FEES $ 80,549.75
OFFICE OF THE TAX ASSESSOR
The authority to tax real property is found in Virgin Islands Code,
Title 33, Section 2301, which states that for every calendar year there
shall be assessed, levied and collected by the Government of the Virgin
Islands, a tax of 1.25% of the actual value of all real property in the
Virgin Islands. This has further been amended to read 60% of the actual
Actual Value for this purpose, is synonymous with market value
which may be defined as the highest price estimated in terms of money
which a property will bring if exposed for sale in the open market,
allowing a reasonable time to find a purchaser who buys with knowledge
of all the uses to which it is adopted and for which it is capable of
being used. The Code also defines real property as to be synonymous
with immovables, which includes land, buildings, structures of every
kind adherent to the soil or anything attached to an immovable in a
fixed manner in such a way that it cannot be separated from the fixed
object without breaking the matter or causing injury to the matter.
This makes machinery, vats, tanks, electrical poles and lines, tele-
phone poles and lines equipment, docks though floating, house trailers,
to be real property and therefore subject to taxation.
Real property appraisal, however, is not solely the valuation of
the physical land and improvement. It includes the valuation of the
rights and privileges of ownership and the restrictions and limita-
tions to which the real property may be subject.
The physical land and buildings and the structures and the rights
and privileges to use these land, buildings and structures are assessed
and taxed, after actual view, to the person whose name appears on the
records of the Office of the Recorder of Deeds or the person who may be
in possession thereof as of January 15 of each year.
The thirty-one employees of the office are so organized as to
successfully meet the requirements of the law. Each of the eleven
Building Appraisers are assigned to different sections of the three
islands. Each is versed in the construction activities of his area and
with the aid of tax maps and building permits, it is virtually
impossible that any new construction would escape notice. This arrange-
ment has assured the office that each improvement in the Virgin Islands
is being taxed.
The two Land Appraisers for St. Thomas and St. Croix operate under
a system which assures the office that all parcels of land are being
taxed. This system includes the review of the records of the Recorder
of Deeds, the plotting of subdivision maps to the office tax maps and
the field review of the actual subdivision and the recording of subdivi-
sions in an orderly and identifiable manner.
The field and other information gathered by the building and
land appraisal staff is converted to assessments through the
extensive use of the data processing system. This section of the
office, which includes three data processing personnel, performs
the work of converting the tax information to assessment.
This office is guided by two basic principles: (1) to locate and
tax all real property subject to taxation, and (2) to do this in a fair
and equitable manner. To maintain these principles, it is important
that the professional and scientific methods of appraising real property
be applied in varying degrees, depending on the type and location of
the property being assessed.
After the close of the January 15, 1980 tax year, this office
immediately initiated plans to commence the 1981 reassessment so as to
meet the requirements of the law which dictates that all real property
must be reassessed at least every two years.
The building appraisal staff has been engaged in reassessing all
improvements. Of the 20,000 improvements, the staff actually viewed
15,000 old improvements and appraised 500 new improvements and addi-
tions to improvements.
The land appraisal section has plotted 400 new subdivisions and
recorded several hundred changes in ownership and changes to land areas.
The data processing staff upgraded the data processing system as it
relates to assessment by changing the computation of additional details
such as cisterns, terraces, and fences from a manual process to the
data processing system. This is a significant improvement in the tax-
ing system since it eliminates the last stage of hand computation and
the resulting cumbersome process of accounting for the bi-annual
increases. The work of converting this information to the data process-
ing system entailed reviewing each of the over 150,000 appraisal cards
in such a manner as to allow for easy processing by the data processing
The 34,747 bills issued for tax year 1980 reflected an assessment
of $976,000,000, with a tax of $12,200,000.00. Of this, St. Thomas
accounted for 15,338 bills and $465,419,997 in assessment and
$5,473,119.75 in taxes; St. John, for 2,290 bills, $69,485,567 in
assessment and $716,375.78 in taxes; Christiansted, for 11,644 bills,
$4,460,455 in assessment, and $371,236,400 in taxes; Frederiksted, for
5,475 bills, $191,363,826 in assessment and $1,370,051.21 in taxes.
These taxes do not include Hess Oil amount of approximately $10,000,000,
which increased the real property tax yield to $22,200,000.00.
The reassessment program, which is now nearing completion, shows
that after examination of present cost of building materials and labor,
that the cost to replace an existing building or to construct a build-
ing, increased by about 30 percent since the 1979 reassessment. The
following reflects the changes in cost of basic building material:
-1 1978 1981
Concrete Products $64.65 $83.88
Lumber Douglas Fir (per sq. ft.) .69 .75
Concrete Blocks (4x8x16) .45 .90
Cement (per bag) 3.95 5.75
This indicates that per sq. ft. cost factor schedule applied for
1979 should be revised to reflect the corresponding increases and should
be reflected on the 1981 real property tax bills. A comprehensive study has
been made to compare the difference between actual sales of real property
(land and building), to the 1979 values as used by this office.
It was discovered that for St. Thomas and St. John, that the sale of
such properties exceeded the appraisal of this office by an average of
about 30 percent for the lower and middle income homes and upwards of
40 percent for the $150,000 and over homes. This is supported by the
Tax Appraisal Actual Sales
These findings indicate that the office should take vigilant steps
to upgrade assessments of the higher priced homes if some reasonable and
equitable base is to be achieved.
This should entail a review of the methods used by other juris-
dictions in adopting the market approach to the mass appraisal process
so as to make applying this system as easy and efficient as possible.
Further, investigation should be made into the adoption of this method
to the data processing system. This should be done by the existing
staff and without incurring the cost of consulting services. The
results of the reassessment should reflect some closing of the gap
between actual sales and assessments. The application of the market
appraisal will continue to be applied to condominiums since this class
of property easily fits the methods applied in appraising such
A study of the assessment of vacant land to vacant land sales
showed that assessments are relatively close to sales; therefore, it is
anticipated that increases to such properties would be limited to about
8% to 10% for St. Thomas. Land sales for St. Croix have shown no appre-
ciable increase since the 1979 reassessment and therefore a small
increase of about 2% to 4% is anticipated.
The 1981 real property taxes are subject to be increased from the
present amount of $12,200,000.00 to about $15,000,000.00 (not including
Hess Oil). The actual amount which should be collected amounts to
$40,000,000.00 (including Hess), but the following exemptions have
reduced this tax as follows:
Homestead Exemption $ 490,233
Veterans Exemption $ 290,821
Non -Profit Exemption $ 240,547
Farmland Exemption $ 592,491
Church $ 133,346
Industrial Incentive $ 2,951,024
Elderly $ 23,803
The real property tax accounts for a relatively small portion of
the income of the Government. This is due to a number of exemptions
which have served to erode the tax base. This is coupled with an
already low tax rate of 1.25%, which has been reduced by the 60% assess-
ment rate factor. Most other jurisdictions under the American Flag
depend heavily on the real property tax for financial support. The tax
rate of some of the major cities of the United States show the follow-
ing comparison to the local rate:
New York 1.888%
Virgin Islands 1.25%
The St. Thomas branch of this office was relocated at the West
Indian Company Dock, Havensight Mall, on July 1, 1981. The new quarters
provided additional space of about 1,000 sq. ft., and improved working
conditions with air-conditioning and more space for each employee. This
move has helped to improve the morale of the employees and subsequently
the production and efficiency.
The new office is equipped with several new desks and chairs and
other equipment. The office is now properly equipped and there is
little need, at this time, for additional purchases. The addition of
three new vehicles assures this office of completing the field
appraisals important to the reassessment and regular assessment activi-
The needs of this office relate mainly to training employees in the
field of real property appraisal so as to assure the Government of
having a reasonably professional job done. There is an urgent need to
have appraisal employees attend seminars, schools or conferences on real
property appraisal or to have in-office classes on this subject con-
ducted by some recognized body.
There is also a pressing need to fill several vacant positions and to
return the staff to its full complement of thirty-one employees.
Presently, there is a shortage of six employees. This shortage should
be corrected immediately if this office is to meet the requirements of
the law and the deadline of issuing bills by May 15 of each year.
VACANT POSITIONS TO BE FILLED
Assistant Building Appraiser
Assistant Land Appraiser
St. Croix (1)
St. Thomas (1)