There’s Still $41.7 Million In Tax Refunds To Be Paid To Residents, BIR Director Says

ST. CROIX — Bureau of Internal Revenue Director Marvin Pickering revealed on Wednesday that over $29 million worth of tax refund checks have already been disseminated this year for tax years 2013 and prior, amounting to 11397 checks. However, the unpaid amount for 2014 and prior tax years remains high.

Pickering revealed the information at a budget hearing while giving testimony at the Frits E. Lawaetz Conference Room in Frederiksted, adding that the department continues to make strides in collecting past due taxes, which has aided in the bureau’s efforts to release refund checks to residents.

The director said that as of June 1, unpaid refunds stood at $41.7 million, payable to 12,526 taxpayers; of which $21.1 million is payable to 7612 taxpayers for the 2014 tax season, and $20.6 million to 4914 taxpayers for prior tax years.

Governor Kenneth Mapp has stated multiple times that his administration intends to release to residents their refund checks in a more timely fashion compared to past administrations.

“We came into the government and there were no tax refunds being issued,” Mapp said during an interview with radio personality Mario Moorehead on WDHP 1620 A.M. while discussing a myriad of issues facing the territory and how he plans to solve them. “We announced that we would start out by issuing tax refunds at $500,000 a month — we were able to move that to $750,000 a month and we have brought that up to now a million dollars a month.”

He added: “We advised the members of the legislature yesterday that our plan is to move that to $4.2 million a month in terms of getting folks their tax refunds in the territory.”

Previously, the governor said while his administration would lift the freeze on tax returns, refunds would not go out to everyone in tandem, but rather a trickle down approach would be enabled until the government had a better handle on its financial standing.

“Let me caution you that obviously we’re going to begin with the oldest tax refunds that are due and owing, but this is not going to come out in droves, we’re going to turn the faucet on, and as my commissioner of finance says to us, [we will] sprinkle them out,” Mapp said at a press conference held in Government House on St. Croix in February. “As the revenues come in and we get a greater hold on the financial condition, we will increase the amount of refunds that will be paid.”

At Wednesday’s hearing, Pickering also revealed other pertinent financial information. He said revenue collections as of April, 2015 stood at $408 million, up 7.6 percent over the same period last year. This amount represents $385 million for the general fund and $23 million for special funds.

The general fund breakdown saw individual income taxpayers representing the lion’s share of revenues with $226 million, while corporate income tax represented $49 million; gross receipts at $95 million; excise tax $14 million; and other miscellaneous taxes at $1 million.