Bill filed to lock in ‘rum cover over’ for PR, USVI at $13.25 per proof gallon

By THE STAR STAFF

U.S. Senator Bob Menéndez (D-N.J.), Resident Commissioner Jenniffer González Colón (RP.R.), Sen. Bill Cassidy (R-La.), and Delegate to the U.S. House of Representatives Stacey Plaskett (D-V.I.) introduced legislation on Tuesday to modify the amount of money transferred to Puerto Rico and the U.S. Virgin Islands – known as the “rum cover over” – from the excise taxes collected on rum that is produced in or imported into the rest of the United States from the two U.S. territories.

It is the second time at least that the initiative has been filed.

here in the United States, and 80% of the rum consumed around the world, is made in Puerto Rico. Annually, we receive more than $330 million from the rum excise tax cover-over, which has been vital to supporting critical services, including healthcare, education, and public safety, and funding environmental and other conservation initiatives,” said González Colón, a co-founder and co-chair of the Congressional Rum Caucus. “This increase is vital to address uncertainty that both Puerto Rico and USVI have experienced, including funding cliffs on several occasions, and ensure that resources continue reaching our community.”