Wednesday, May 18, 2016
PR Treasury Reports Revenues $76.2 Million Above Estimates
Government Development Bank
PUERTO RICO TREASURY REPORTS GENERAL FUND NET REVENUES
TOTALED $1.28 BILLION IN APRIL, $76.2 MILLION ABOVE ESTIMATES
Sales and Use Tax totaled $207.9 million, $87.8 million above April 2015
(San Juan, Puerto Rico) – Treasury Secretary Juan Zaragoza Gómez reported that
net revenues recorded by the General Fund in April 2016 totaled $1.28 billion, $76.2
million above revised estimates, and $47.7 million below net revenues in April 2015.
Corporate income taxes were the main revenue driver in April with $409.2 million in
collections, a year-over-year increase of $32.5 million, or 8.6%, representing 31.9%
of total revenues for the month, and exceeding revised estimates by $69.7 million.
A majority of corporate income tax revenues are collected in April, as most corpora-
tions’ returns, as well as the first estimated tax payments for the tax year, are due
Individual income taxes were another important revenue category with $302 million
in collections, a $57.4 million year-over-year decrease. One of the reasons for this
decrease is that collections in April 2015 included $29 million in non-recurring reve-
nues from special laws. April 2016 Sales and Use Tax (“SUT”) revenues totaled
$207.9 million, $87.8 million above April 2015 receipts. The difference is the result
of the increase in the state SUT rate to 10.5% from 6% and the 4% tax on designa-
ted business-to-business and professional services (known as B2B).
B2B collections totaled $12.6 million in April. SUT revenues were allocated as foll-
ows: $197.7 million to the General Fund; $9.9 million, or 0.5%, to the Municipal Ad-
ministration Fund; and $270,000 to the Film Industry Fund.
Excise tax categories registered both upward and downward year-over-year chan-
ges. Foreign excise taxes and motor vehicle excise taxes increased by $4.8 million
and $4 million, respectively,while alcoholic beverages and cigarette excise taxes de-
creased by $1 million and $8.8 million, respectively.
Finally, in April the category known as “Other” registered a $130.8 million decrease.
This difference is the result of revenues in April 2015 that were non-recurring this
year. Act 44-2015 allowed the pre-payment of a special tax on certain transactions.
These transactions included a pre-payment, at a reduced rate of 5%, of taxes on
corporate dividends for future distributions of accrued benefits and profits. Reven-
ues from prepaid taxes on dividends, which are classified under the category of
Other, were $111 million in April 2015.
Fiscal year-to-date (July-April) revenues totaled $7.54 billion, a year-over-year incre-
ase of $213.3 million, or 2.9%, $45.7 million above revised estimates, and $238.5
million below estimates included in the original FY 2016 budget. Treasury Secretary
Zaragoza Gómez noted that based on revenue behavior up to April, estimates inclu-
ded in the revised $9.29 billion budget for FY 2016 are expected to be met.