16. The proceeds of customs duties, the proceeds of the United States Income Tax,
the proceeds of any taxes levied by the Congress on the inhabitants of the Virgin
Islands, and the proceeds of all quarantine, passport, immigration and naturalization
fees collected in the Virgin Islands, less the cost of collecting all of said duties, taxes,
and fees, shall be covered into the Treasury of the Virgin Islands, and shall be
available for expenditures as the Legislature of the Virgin Islands may provide:
Provided that the term "inhabitants of the Virgin Islands" as used in this section shall
include all persons whose permanent residence is in the Virgin Islands, and such
persons shall satisfy their income tax obligations under applicable taxing statutes of
the United States by paying their tax on income derived from all sources both within
and outside the Virgin Islands into the Treasury of the Virgin Islands: Provided, further,
that nothing in this Act shall be construed to apply to any tax specified in section 3811
of the Internal Revenue Code.

 (c) Section 42 of the Trade Mark Act of 1946 (60 Stat. 440, 15, U.S.C., 1952
 Edition, sec. 1124) and Section 526 of the Tariff Act of 1930 (46 Stat. 741, 19 U.S.C.,
 1952 Edition, sec. 1526), shall not apply to importations into the Virgin Islands of
 genuine foreign merchandise bearing a genuine foreign trade-mark, but shall remain
 applicable to importations of such merchandise from the Virgin Islands into the United
 States or its possessions; and the dealing in or possession of any such merchandise
 in the Virgin Islands shall not constitute a violation of any registrant's right under said
 Trade Mark Act.

 (d) There shall be levied, collected, and paid unto all articles coming into the
 United States or its possessions from the Virgin Islands the rates of duty which are
 required to be levied, collected, and paid upon like articles imported from foreign
 countries, and the internal revenue taxes imposed by section 3350 of Title 26, United
 States Code. Provided, That all articles, the growth or product of, or manufactured in
 such Island, from materials grown or produced in such islands or in the United States,
 or both, or which do not contain foreign materials to the value of more than 50 per
 centum of their total value, upon which no drawback of customs duties has been
 allowed therein, coming into the United States from such islands shall be admitted free
 of duty. In determining whether such a Virgin Islands article contains foreign material to
 the value of more than 50 per centum, no material shall be considered foreign which,
 at the time the Virgin Islands article is entered, or withdrawn from warehouse, for
 consumption, may be imported into the continental United States free of duty
 generally.

 17. (b) Subchapter B of Chapter 28 of the Internal Revenue Code is amended by
 adding to section 3350 thereof the following subsection:

 (c) Disposition of Internal Revenue Collections -The Secretary of the Treasury
shall determine annually the amount of all taxes imposed by, and collected during the
fiscal year under the internal revenue laws of the United States on articles produced in
the Virgin Islands and transported to the United States. The amount so determined
less one per centum and less the estimated amount of refunds or credits shall be