48 U.S.C. § 1397
Section 1397 · Income tax laws of United States in force; payment of proceeds; levy of surtax on all taxpayers
Amended 2 times on record
Applied in 51 court decisions — leading case Dudley v. Commissioner of Internal Revenue (1958)
Most recently applied in Jennifer Duncan v. Governor of the Virgin Islands (August 2022)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
The income-tax laws in force in the United States of America and those which may hereafter be enacted shall be held to be likewise in force in the Virgin Islands of the United States, except that the proceeds of such taxes shall be paid into the treasuries of said islands: Provided further, That, notwithstanding any other provision of law, the Legislature of the Virgin Islands is authorized to levy a surtax on all taxpayers in an amount not to exceed 10 per centum of their annual income tax obligation to the government of the Virgin Islands.
Editorial notes U.S. Code · Office of the Law Revision Counsel
References in Text
The income-tax laws in force in the United States of America, referred to in text, are classified to Title 26, Internal Revenue Code.
Codification
Section is from act July 12, 1921, popularly known as the Naval Service Appropriation Act, 1922.
Amendments
1976—Pub. L. 94–392 inserted proviso authorizing Legislature of Virgin Islands to levy a surtax, not to exceed 10 per centum, on annual income tax obligation of all taxpayers.
Application of Western Hemisphere Trade Corporation Provision Under the Virgin Islands Tax Laws
Pub. L. 92–178, title III, §307, Dec. 10, 1971, 85 Stat. 524, provided that for purposes of applying the income tax laws of the United States with respect to the Virgin Islands under this section, subpart C of part III of subchapter N of chapter 1 of the Internal Revenue Code of 1954 [former 26 U.S.C. 921, 922] (relating to Western Hemisphere Trade Corporations) shall be treated as having been repealed effective with respect to taxable years beginning after Dec. 10, 1971.
Cross References
All provisions of laws of the United States applicable to assessment and collection of taxes imposed by Internal Revenue Code as applicable to possessions, see section 7651 of Title 26, Internal Revenue Code.
Disposition of proceeds of taxes on articles produced in the Virgin Islands and transported into the United States, see section 7652 of Title 26.
Use of proceeds of United States income tax collected in the Virgin Islands, see section 1642 of this title.
Taxation of income derived from sources within the United States, see section 933 of Title 26.