|Cruzan Rum is made in the US Virgin Islands|
Each year the US Virgin Islands receives tens of millions of dollars from the federal government as the result of a 'Cover Over Rate Tax' which is USVI rum excise tax monies returned to the US Virgin Islands from the federal government. Actually, over $250 million each year comes back to the US VIrgin Islands as the result of people buying USVI made rum! The cover over tax has been in place for nearly 100 years and benefitting the US Virgin Islands since 1954. The Congressional Research Service produced a history of the Rum Excise Tax Cover Over 3 years ago.
The 'per gallon' excise tax rate is now in dispute between the US Virgin Islands government and the federal government. The difference is not peanuts in that the USVI is projecting $264 million and the federal government is projecting only $193 million. The difference is based on a lower per gallon reimbursement rate $10.50/gallon vs $13.25/gallon. If you want to get into the details you might read the letter the USVI's Budget Director sent last Friday to the Department of the Interior appealing for relief of the per gallon rate calculation.
The bottom line for us, though, is the more US Virgin Islands rum that is sold the more money that is returned to the US Virgin Islands for support of our schools, streets, etc so....drink up to help the islands you love.