Territorial Tax Parity and Clarification Act

Bill: 118-hr-1037
Sponsor: full_name: Del. Plaskett, Stacey E. [D-VI-At Large]
Introduced: 2023-02-14
Policy area: Taxation
Latest action: action_date: 2023-02-14
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2023-02-14
action_desc: Introduced in House
text: <p><b>Territorial Tax Parity and Clarification Act</b> </p> <p> This bill modifies the income source rules that apply with respect to the taxation of capital gains from certain personal property sales in the U.S. Virgin Islands (USVI).</p> <p>Specifically, the bill requires capital gains income earned by a USVI resident to be considered USVI source income regardless of the tax rate imposed by the USVI government. (Under current law, a similar rule applies to other U.S. territories, including Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico.)</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 1037 IN THE HOUSE OF REPRESENTATIVES February 14, 2023 Ms. Plaskett introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify the source rules for personal property sales in possessions of the United States.

1. Short title This Act may be cited as the Territorial Tax Parity and Clarification Act . 2. Modification of source rules for personal property sales in possessions (a) In general Section 865(j)(3) of the Internal Revenue Code of 1986 is amended by inserting , 932, after 931 . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022.