Revenue sharing is a funding arrangement in which one government unit grants a portion of its tax income to another government unit. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states. Laws determine the formulas by which revenue is shared, limiting the controls that the unit supplying the money can exercise over the receiver and specifying whether matching funds must be supplied by the receiver.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The Virgin Islands Revenue Sharing Agreement is a contractual arrangement between the United States government and the government of the United States Virgin Islands (SVI). This agreement outlines the distribution of various streams of revenue generated in the SVI, ensuring a fair and equitable allocation of funds between the two entities. Under this agreement, the SVI receives a portion of the revenue generated from certain activities taking place within its boundaries. These activities can include tourism, offshore financial services, trade, and other economic sectors. The revenue sharing arrangement aims to support the SVI's economic development, infrastructure projects, and public services while also recognizing its status as an unincorporated territory of the United States. There are several types of Virgin Islands Revenue Sharing Agreements that may exist, each addressing specific revenue streams or sectors. These agreements include: 1. Tourism Revenue Sharing Agreement: This type of agreement focuses on sharing the revenue generated from tourism-related activities, such as hotel stays, cruise ship visits, and tourist attractions. It ensures that the SVI benefits from the economic impact of the tourism industry, which is a significant source of revenue for the territory. 2. Offshore Financial Services Revenue Sharing Agreement: Given the SVI's status as a popular jurisdiction for offshore financial services, this agreement addresses the revenue generated from activities such as banking, investment, and trust services provided to non-residents. It ensures a fair distribution of these financial gains between the SVI and the United States government. 3. Trade Revenue Sharing Agreement: This agreement pertains to the revenue generated from international trade activities, including exports and imports passing through SVI ports. It outlines how the SVI shares in the revenue generated from these trade flows and takes into account factors such as customs duties, tariffs, and other trade-related fees. 4. Energy Revenue Sharing Agreement: With a growing focus on renewable energy and sustainability, this type of agreement addresses revenue generated from energy production and distribution within the SVI. It ensures that the SVI can benefit from the potential revenue derived from clean energy initiatives, such as wind farms or solar power plants. It is important to note that the specifics of each revenue sharing agreement can vary depending on various factors, including the economic conditions, evolving industries, and negotiation results between the SVI government and the United States government. These agreements play a crucial role in fostering cooperation, economic growth, and financial stability in the US Virgin Islands.
