It’s far from closing time for the ongoing “rum war” between Puerto Rico and the U.S. Virgin Islands as a U.S. senator is seeking to distribute rum-tax revenue based on population rather than the amount of rum a territory produces, which is the current system.
Puerto Rico and the USVI receive $13.25 from the federal government for every barrel of rum they generate. The revenue comes from a $13.50 per-barrel rum tariff that rum manufactures pay to the federal government. A tax-extender bill, HR 4213, would continue the $13.25 rate through 2010. Without the renewal, the rate drops to $10.50.