June 2, 2003 – Having ordered the V.I. government to suspend the collection of property taxes several weeks ago, District Judge Thomas K. Moore said on Monday that he'd be willing to reconsider his stance if lawmakers can come up with a new tax collection plan he finds acceptable. At a hearing in his St. Thomas courtroom, Moore said he hadn't intended to comment on the Turnbull administration's proposal to collect only voluntary payments of property taxes for the years1999 through 2004. But he said he did so, "because it was done at the time the case was actively being litigated."
Moore said he has no problem with the government collecting property taxes. His concern is with the system used to assess the value of real property for tax purposes. In his May 12 ruling on the consolidated portion of the current tax case involving 11 plaintiffs, he ordered the V.I. government to stop issuing new tax bills until the assessment system is reformed.
But at Monday's hearing he stated that "nothing in the memorandum was decreed to prevent anyone from paying their taxes if they wanted to."
In a bid to get the moratorium on tax collections lifted, Gov. Charles W. Turnbull included a tax-payment provision in his pending package of borrowing, taxing and spending proposals to address the territory's fiscal crisis. It provides for property owners who pay their 1999 through 2004 taxes prior to enactment of the court-ordered revised assessment system to be entitled to a credit for any overpayment toward their subsequent year's tax bill. The package of bills is to be taken up by the Senate Finance Committee on Thursday.
According to David Bornn, one of the plaintiffs' attorneys, Moore expressed concern about what would happen to disputed tax bills dating from before 1999 or after 2004. He also raised the issue of what protections property owners would have if they agreed to pay estimated taxes in lieu of receiving bills.
Moore also questioned the calculations used to determine how much money the government should set aside in a fund for issuing rebates to property owners who overpay their tax bills.
He summed up his concerns to a V.I. Justice Department legal team headed by Assistant Attorney General Kerry Drue.
In a special session in February, while the consolidated tax case was under way in Moore's court, the Senate approved legislation submitted by the governor providing for 2001 through 2004 property tax bills to be sent out using 1999 valuations. Despite Moore's chastisement of the government's action, Turnbull signed the bill into law as Act No. 6574.
Moore said on Monday that the government needs to amend the act to provide for:
– Billing property owners at 1999 levels indefinitely until the tax assessment system is changed.
– Changing the assessment system.
– Making sure there are sufficient funds available for rebates to those who are found to have overpaid their taxes
Moore suggested that up to $1 million be placed in the fund for rebates. Drue said the V.I. government could not decide how much would be adequate and so turned to the court for guidance; however, the judge said it will be up to the government to decide.
Moore also appointed Joseph Hunt as special master to oversee changes to the property tax assessment system. Hunt was appointed more than two years ago to oversee implementation of the December 2000 settlement of the landmark case in which two St. Thomas commercial property owners challenged the government's practice of assessing property on the basis of replacement value and not market value.
As both a licensed appraiser and a former tax assessor, Hunt brings to the task a background in viewing property assessments from both the owner's and the government's point of view. "He's eminently qualified," Bornn said.

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