Puerto Rico collections up $335M YOY through Nov.
Puerto Rico Treasury Secretary Melba Acosta announced Thursday that revenues for the first five months of fiscal year 2014 exceeded collections for the same period of fiscal year 2013 by $335 million, or 12.4 percent. Revenues year-to-date have exceeded estimates by $79 million.
Acosta also said General Fund revenues totaled $473 million in November. This number was below the November 2012 figure by $21 million and below estimates for the month by $48 million.
“Traditionally, November is one of the less significant months in terms of collections during the year,” she said.
Mixed results were observed in the principal revenue categories compared to November 2012, due to a combination of factors that included a shift in the timing of some tax collections.
The excise tax for foreign corporations subject to Law 154, which has the largest impact on monthly revenues, decreased by $25 million compared to November 2012.
This is attributable to several corporations’ adjustments in the accounting of credits with respect to the previous quarter, driven by their quarterly tax planning initiatives, she said.
This reduced the effective amount of the tax paid this month. In one case, it is anticipated that the adjustment will lead to additional revenues in December.
Withholding from non-resident corporations, which includes the tax imposed on royalties for the use of patents in the manufacturing industry’s production processes, registered a $12 million increase in November. Corporate income tax collections increased by $7 million.
Individual income tax revenue declined by $9 million compared with November 2012 because it did not include the withholding from the Christmas bonus paid to government employees and because of reduced tax rates.
The excise tax revenue on off-shore shipments of rum is down by $4 million. Acosta noted that due to the federal government shutdown October revenues had been estimated, and this month they were adjusted to include actual revenues.
Finally, sales and use tax (SUT) revenues year-to-date in Fiscal 2014 totaled $500 million for a year-over-year increase of 5.8 percent. SUT revenues in November totaled $97.6 million, approximately $3 million more than in November 2012, or a 3.2 percent increase.
This figure was below monthly projections by $25.7 million.
Acosta Febo said the Treasury Department continues implementing multiple aggressive initiatives to increase the SUT’s capture rate.