Motor vehicle excise taxes fuel December ’11 Treasury collections
Net General Fund revenue totaled $776 million in December, representing an increase of $210 million when compared to the same month in 2010. The hike was attributed to a surge in motor vehicle excise tax collections, which Treasury Secretary Jesús Méndez said reflected the highest year-over-year percentage growth.
Motor vehicle excise tax collections totaled $43 million in December, up from the $28.4 million on record for December 2010.
“We are extremely pleased with this increase in the motor vehicles segment, as it is the highest level of revenue since January 2006 when the recession began,” he said. “The inter-annual increase was $15 million or 51.4 percent.”
Motor vehicle sales experienced a modest growth in 2011, of about 1.5 percent, driven by fleet sales and improved credit conditions, as News is my Business reported last month.
“This result is another example of how the Tax Reform, along with other economic development measures this administration has implemented, are helping to increase consumer confidence, which translates into increased economic activity,” Méndez further noted.
The changes reflected in the collections totals were mainly attributed to individual income taxes (up $89 million) and excise taxes (up $163 million.)
While the income tax growth was directly related to the fact that there were no employer retentions applied during December 2010 as part of the Tax Reform, excise tax collections were boosted by the special tax levied on corporations through Law 154, which raked in $158 million for the government in December 2011.
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