CHARLOTTE AMALIE, St. Thomas -- The U.S. Virgin Islands Senate rejected a proposed 25% room tax increase and a $5-a-day surcharge on car rentals, two measures proposed last month by Gov. Charles Turnbull to deal with an anticipated $144 million fiscal-year deficit.

The move was applauded by David Yamada, president of the St. Thomas-St. John Hotel & Tourism Association, who said "this isn't the time to increase the cost of a Virgin Islands vacation."

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