Puerto Rico's revenues were 2% below projections for the first quarter of the fiscal year, Puerto Rico's Treasury reported Thursday.
While the quarter's revenues were below projections they were 4.4% above revenues in July to September of 2013.
September's revenues were 6% under projections for the month and 3% under last year's September revenues. September's shortfall from projections was caused by a $27 million gap between actual and projected corporation revenues, $16 million less than expected in foreign corporation (Act 154) revenues, and $10 million less than anticipated for taxes on off-shore shipments of rum.
Treasury Secretary Melba Acosta Febo said the rum shortfall was because the reimbursement rate per gallon of rum had declined to $10.50 from $13.25 last year. "It is expected that during this fiscal year, as in previous years, a tax extender will be approved retroactively and this excise tax reimbursement will be $13.25 per gallon," she said.
In the first quarter the biggest exceedances compared with projections were foreign tax revenue, by $43 million and the "other" category, by $32 million. The biggest shortfalls compared to projections were corporation taxes by $33 million and individual income taxes by $26 million.
Acosta Febo pointed out that the sales and use tax collections were $116 million, the highest for September since the tax was implemented in November 2006. The state's rate increased to 6% from 5.5% last year at this point. After adjusting for the rate increase, the sales and use tax collections still went up by 8.7% from September 2013.
Sales and use tax collections are diverted to the Puerto Rico Sales Tax Financing Corp. (COFINA) in the first few months of the fiscal year and do not contribute to the General Fund revenues. Later in the fiscal year the revenues do contribute to the General Fund.
Acosta Febo said the Treasury is implementing several oversight efforts and initiatives to generate revenues for the commonwealth.
Acosta Febo and other Puerto Rico officials are working with consultant KPMG on creating a major revision to Puerto Rico's tax system. There has been some talk that the new system may become effective in the new calendar year.
