• Sen. Allison DeGazon

Sen. DeGazon demands that WICO begins making payments to VI Government

During a Committee on Economic Development, Regulations and Agriculture meeting last Thursday, Sen. Allison DeGazon told officials from the West Indian Company, Limited to meet its financial obligations to the government.

WICO has long paid a set fee – a payment in lieu of taxes, of $700,000 per year – instead of paying corporate income tax, property tax or gross receipts taxes. But it has fallen millions of dollars behind in its payments.

DeGazon during the hearing was dissatisfied with WICO’s lack of attempt to pay their outstanding balance to the Virgin Islands Government and lackadaisical attitudes towards making any payments.

“My issue is that nothing is being paid. No portion or anything,” DeGazon said. “They have a $10 million operating budget. Their PILOT payment should be a priority to show the community they are serious about government affairs.”

According to Anthony Ottley, Interim President of WICO, a reduction in passengers and revenue was the cause.

“One of the challenges that we continue to have is back when the dollar amount was determined, WICO was accepting anywhere in the neighborhood of 1.5 to 1.7 million passengers annually,” Ottley said, noting that times were better then but now those numbers are declining. “. This past year we had a little under 1.1 million. Next year, it will be somewhere in the vicinity of 900,000…Right now the challenge is to get our numbers back up.”

Ottley in his testimony asked for a reduction in the PILOT amount due to those challenges. It wasn’t the first time WICO asked for a reduction, and during the 32nd legislature was almost granted one when lawmakers approved Bill 33-0002 which would reduce their PILOT payment from $700,000 to $250,000.

DeGazon however, believed WICO could make its payments if they prioritized their spending.

“If we can pay $14,00 per board meeting. Then making the 700,000 payment in lieu of tax debt should be a priority,” DeGazon said. “I would like to see more effort in making sure your responsibilities are met with the government.

0 views0 comments

© Sen. Allison DeGazon 33rd Legislature 2020.

1108 King Street, HAmilton House

Christiansted Virgin Islands 00820  

  • Grey Facebook Icon