Residents Withhold Taxes Over Road Repairs
Villa owners in Virgin Gorda say they withheld a portion of hotel accommodation taxes to fund emergency repairs on the Mahoe Bay–Mango Bay road after repeated flooding and alleged inaction by Public Works. The move has prompted debate over legality, precedent and the impact on tourism and local services.
Villa owners and managers in the Mahoe Bay area of Virgin Gorda have taken the unprecedented step of withholding part of the hotel accommodation tax and using the funds to carry out repairs on a section of public road they say has been undermined by repeated flooding. The action was described in a recent commentary and social media posts from Virgin Gorda Villa Rentals (VGVR), which said flooding in May 2024 and August 2025 damaged beachfront properties and left a stretch of the Mahoe Bay–Mango Bay road severely undermined.
VGVR said Public Works staff visited several times but that "no meaningful work or maintenance has been carried out" over 15 months, prompting the company and some homeowners to pay for culverts and stabilisation works themselves (VGVR commentary; VGVR Facebook post). VGVR had issued a 14‑day ultimatum from Aug. 20, demanding a detailed government plan with a start date for drainage upgrades and road stabilisation.
When that plan did not arrive to VGVR's satisfaction, the company said it would withhold tax payments and document expenses as a last resort, framing the decision as a moral obligation to protect residents, staff and guests (BVI Beacon commentary). The story was discussed on this week’s Talking Points show, where co‑host Elvin Grant warned that withholding government revenue "just like that is a fairly draconian step" and cautioned about copycat actions.
Co‑host Damion Grange highlighted safety concerns, recounting a tourism bus excursion where a passenger said he feared for his life as the vehicle swayed to avoid potholes (Talking Points). Under Virgin Islands law, hotel accommodation tax is levied under the Hotel Accommodation (Taxation) Ordinance, Cap 205, and is among the revenue laws referenced in the new SIGTAS tax administration amendments (Validation) Act, 2025.
Legal experts say withholding statutory taxes can expose individuals and businesses to enforcement action and may not be a lawful substitute for government responsibilities. For BVI residents and businesses, the dispute raises two pressing issues: the immediate safety and access risks for residents and visitors—VGVR warned a full road collapse could sever alternate access to North Sound and Nail Bay—and the broader question of how citizens should respond when essential services are not delivered.
Many are calling for a clear government response, prompt repairs, and a formal pathway for communities to seek timely infrastructure action without risking legal or fiscal consequences.
Primary source: BVI News