Territorial Tax Parity and Clarification Act
This bill modifies the income source rules that apply with respect to the taxation of capital gains from certain personal property sales in the U.S. Virgin Islands (USVI).
Specifically, the bill requires capital gains income earned by a USVI resident to be considered USVI source income regardless of the tax rate imposed by the USVI government. (Under current law, a similar rule applies to other U.S. territories, including Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico.)
To amend the Internal Revenue Code of 1986 to modify the source rules 
    for personal property sales in possessions of the United States.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Territorial Tax Parity and 
Clarification Act''.

SEC. 2. MODIFICATION OF SOURCE RULES FOR PERSONAL PROPERTY SALES IN 
              POSSESSIONS.

    (a) In General.--Section 865(j)(3) of the Internal Revenue Code of 
1986 is amended by inserting ``, 932,'' after ``931''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.
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Territorial Tax Parity and Clarification Act
To amend the Internal Revenue Code of 1986 to modify the source rules for personal property sales in possessions of the United States.
Territorial Tax Parity and Clarification Act
Del. Plaskett, Stacey E.