Puerto Rico’s FY ’17 revenues exceed estimates
SAN JUAN — The Puerto Rico government reported Thursday that the commonwealth received $9.334 billion in net revenues during fiscal year 2017, which ended June 30.
It exceeded the government’s most recent projections, conducted in May, by some $79 million and original estimates by $234.9 million, or 2.6 percent, according to the island’s Treasury Department. The agency added that FY ’17 revenues were $159.6 million, or 1.7 percent, above the previous year’s.
The commonwealth government revised FY ’17 revenue projections on two occasions: in March when the fiscal plan was certified; and late May, when it was revised to $9.256 billion.
The 4% excise tax on foreign corporations (Act 154), the island’s sales tax and the motor vehicle excise tax were the largest drivers. Act 154 revenues registered $2.078 billion, or $215.9 million above the $1.862 billion received during the previous year. It was also $154.2 million above projections.
As for sales tax collections, they totaled $2.547 billion, or $170.5 million above the previous year. Treasury pointed to higher collections in July and the tax on business-to-business transactions as the two main factors driving up sales tax revenues.
Lastly, motor vehicle excise tax revenues injected $369.2 million to the general fund, or $83.6 million more than the previous year and $76.2 million above estimates.
Revenue estimates for FY ’18, which began July 1, are $9.562 billion, $9.172 billion of which correspond to the commonwealth’s general fund. The island’s financial control board established by the federal Promesa law oversees revenue projections and the various measures being implemented to achieve the estimates.