# What This Bill Does

This bill redirects fuel tax money from the federal government to the Virgin Islands government. Right now, when fuel is produced in the Virgin Islands and shipped to the mainland United States, the federal government collects a tax on that fuel and keeps the money. This bill would change that so the Virgin Islands keeps all that tax revenue instead.

# Who This Affects and Why It Matters

The main beneficiary is the Virgin Islands government, which would gain a new source of income to fund local services like schools, roads, and emergency services. The federal government would lose whatever tax revenue currently comes from Virgin Islands fuel shipments, though this is likely a relatively small amount compared to overall federal fuel tax collections. Consumers on the mainland probably won't notice any difference—the price of fuel shouldn't change since this is just redirecting existing taxes, not creating new ones or raising rates.

# The Practical Details

The bill specifically targets fuel that's produced in the Virgin Islands and then shipped into the United States. It applies to taxes collected starting January 1, 2023. This is essentially a financial arrangement recognizing that the Virgin Islands, as a U.S. territory, should benefit from tax revenue generated by its own natural resources and production. It's similar to how some states have special tax arrangements with the federal government for specific industries or products.

To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.

Plaskett, Stacey E.

 <p>This bill provides for the payment into the treasury of the U.S. Virgin Islands revenue from excise taxes on fuel produced in the Virgin Islands and entered into the United States.</p>