Puerto Rico Treasury: August revenue was highest since 2005 for the month
SAN JUAN – Puerto Rico Treasury Secretary Teresita Fuentes announced that net revenue to the island’s general fund totaled $670.3 million in August.
“Revenue was up by $61.5 million, or 10.1 percent, compared to August 2017, and exceeded estimates by $110.8 million. The Treasury Department prepares said monthly projection by adjusting total revenues projected for the current fiscal year in the Fiscal Plan certified on June 29, 2018, including seasonal adjustments, as well as adjustments for non-recurring revenues. Actual revenues were the highest for the month of August since 2005,” Fuentes said in a statement.
This month, taxes related to corporate economic activity were the main drivers leading to above-projection revenues, Fuentes said, adding that corporate income taxes increased by $18.3 million, or 42.7 percent. The non-resident withholding category, which consists mainly of royalties paid in manufacturing, increased by $14.8 million, or 61.7 percent. Foreign excise taxes were up by $23.7 million, or 13 percent, on a year-over-year basis, as they increased from $181.8 million to $205.5 million.
August Sales and Use Tax (SUT, or IVU by its Spanish acronym) revenue was on a par with August 2017 collections, $238.7 million versus $239.5 million, including $102.3 million that went to the general fund.
“It must be noted that the two periods are not totally comparable given the administrative changes that took place in the tax collection process. In August 2017, the revenue base was higher because it included total sales for July, and SUT bi-weekly payments (on the 15th and on the last day of the month) were first implemented that month. In contrast, this year, SUT receipts correspond, for the most part, to August sales,” the secretary explained.
The motor-vehicle excise tax category continues to grow, Fuentes said. Receipts totaled $41.3 million, for a year-over-year increase of 34.8 percent.
“According to representatives from the automobile sector, August sales increased in several categories, such as, fleets, retail, SUVs, and pickups. They say that sales are directly associated with the island’s recovery efforts,” Fuentes said.
Fiscal year-to-date (July and August) general fund net revenues totaled $1.41 billion, a year-over-year increase of $153.2 million, and $201.3 million more than projected.