V.I. Code tit. 33, § 504 (2019)
2019 US Virgin Islands Code|Title 33 - Taxation and Finance|Subtitle 1 - Miscellaneous Internal Revenue Taxes|Part I - Normal Taxes and Surtaxes|Chapter 9 - Production Taxes|§ 504. Maximum production; allocations; tax rates

 (a) The Governor shall determine, after due investigation, the maximum amount of woolen yard goods production in the Virgin Islands which is consistent with the protection of the economic stability and commercial relations of the Virgin Islands. Due notice shall be given and interested parties shall be afforded an opportunity to present comments and information at a public hearing. In making any determination or determinations under this section, the Governor shall take into account, among other relevant factors, the benefit or detriment resulting from the applicability of the provisions of section 301 of the Tariff Act of 1930, as amended, to Virgin Islands products, including problems of the type which led to expressions of concern on the floor of the 87th Congress over possible abuse and excessive use of said provisions. (b) Upon the proclamation by the Governor of any determination or determinations made pursuant to subsection (a) of this section, the rate of tax imposed by this chapter shall be one cent per yard upon the amount of woolen yard goods production set forth in such determination or determinations to be consistent with the economic stability and commercial relations of the Virgin Islands; and the rate of tax on the excess of such amount shall be 65 cents per yard. (c) Each person engaged or proposing to engage in the manufacture or processing of woolen yard goods in the Virgin Islands may apply for an apportionment of a part of the amount set forth in determinations by the Governor, as an allocation of the amount to be governed by the one cent per yard rate. Such application shall be considered by the Governor in accordance with the provisions of this chapter and regulations thereunder, and the manufacturer shall be liable for the tax imposed by this chapter at the rate of one cent a yard to the extent that such application is granted in whole or in part. (d) In carrying out the provisions of this chapter, the Governor has authority to make such classifications of woolen yard goods, including use and market classifications, as he may determine appropriate for purposes of this chapter, and may prescribe different maximum amounts for different classifications. (e) The Governor shall have authority to determine the periods to be covered in granting applications, and may determine that applications shall be granted in whole or in part for a calendar year or for a period smaller than a calendar year. He may prescribe for renewal of applications in whole or in part. (f) Said total maximum amount of one or more classifications of woolen yard goods shall be allocated for any period involved among applicants in accordance with the following criteria: (1) A percentage up to 10 percent of said amount may be reserved as a quantity to be granted in order to relieve against severe financial hardship, and to permit allocation to new manufacturers. (2) One-half of the remainder shall be apportioned among applicants in proportion to total capital investment by each manufacturer involved as of the time of the beginning of the period involved. Total capital investment shall be determined, for purposes of this subparagraph, by ascertaining the original investment in buildings and other fixed depreciable assets in the Virgin Islands. (3) One-half of the remainder shall be apportioned among manufacturers in the classification involved in accordance with total amount of payroll in the Virgin Islands subject to social security taxation for such six-month period nearest to the beginning of the period involved as the Governor may determine to be feasible. (4) Whenever the Governor shall determine, upon due notice and hearing, that all or part of a quota allocated to a manufacturer shall remain unused at the end of the quota period, he may cancel the allocation, in whole or in part, as the case may be, and reallocate the same or any part thereof to another manufacturer in the same classification.