OIA Approves Advance of $288.2 Million to the U.S. Virgin Islands and Guam for Rum and Section 30 Tax Payments for FY 2024

WASHINGTON – The U.S. Department of the Interior’s Office of Insular Affairs (OIA) announces the approval of $212,039,584 to the U.S. Virgin Islands (USVI) and $76,195,730 to Guam. These payments represent an advance of 2024 estimated rum tax-cover over payments to the USVI and 2024 federal income tax Section 30 advance payments to Guam. Both payments will be made this week.

“The Office of Insular Affairs continues to work closely with the U.S. Department of Treasury to ensure that these critical funds for the governments of both Guam and the U.S. Virgin Islands are calculated and transmitted as quickly as possible,” said Assistant Secretary for Insular and International Affairs Carmen G. Cantor.

Under the Revised Organic Act of the Virgin Islands (48 USC Chapter 12 Section 1541), any excise tax collected on USVI-manufactured rum imported into the mainland United States is transferred to or “covered-over” to the USVI. The USVI Government submits an advance estimate of rum excise taxes to OIA on an annual basis so that a payment can be made by September of each fiscal year. Any adjustments are calculated and paid based upon amounts advanced from rum excise taxes derived from the USVI and actual receipts collected by the federal government. The fiscal year 2024 advance payment to the USVI Government was calculated using the $10.50 per proof gallon rate, as provided for under current law.

Under Guam’s Organic Act, federal income taxes derived from active members of the United States Armed Forces and pensions paid to retired civilian and military employees of the United States, or their survivors, who reside in, or who are domiciled in Guam, are annually “covered-over” to the Guam Treasury to support the operations, activities, and programs of the local government (48 U.S. Code 1421 Section h).  The Guam Government submits an advance estimate of these income taxes to OIA on an annual basis so that a payment can be made by September of each fiscal year. Any adjustments are calculated and paid based upon amounts advanced for income tax collections and actual income taxes collected.

The Assistant Secretary for Insular and International Affairs and the Office of Insular Affairs (OIA) carry out the Secretary of the Interior’s responsibilities for the U.S. territories of American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. Additionally, OIA administers and oversees federal assistance under the Compacts of Free Association to the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau. OIA also administers a discretionary Technical Assistance Program for all the Insular Areas.

###