By an almost unanimous vote Thursday evening the House of Representatives approved legislation increasing the Virgin Islands' rum tax rebate to $13.25 a gallon retroactive to July 1.
If the measure is approved by the Senate, it then goes to President Clinton, who is expected to sign it.
The House passed the bill by a vote of 418 to 2, according to Delegate to Congress Donna M. Christian-Christensen. The proposed law includes Puerto Rico and would be valid through 2001.
The rebate consists of federal taxes on rum distilled in the Virgin Islands but sold in the continental United States. The rebate, currently $10.50 a proof gallon, is an important source of revenue for the Virgin Islands government. Some local government funding and borrowing are guaranteed by the rum tax rebate.
Christensen said she was happy about the final outcome of the House version of the bill following a strong show of support from Republicans as well as her fellow Democrats.
"This is just the good news we need in the midst of what Hurricane Lenny has brought us," Christiansen said.