The Financial Oversight and Management Board (JSF) has warned Puerto Rico Governor Jenniffer González not to sign into law House Bill 272 (Proyecto de la Cámara 272), which already passed the Legislature and would extend the two tax-free periods for sales tax (IVU) on school materials from two to five days each. In a letter to the governor, the Board said the measure is inconsistent with the fiscal plan and would reduce revenue to municipal coffers and the General Fund by between $3.4 million and $16.7 million over the next five years, with no identified funding source to offset the loss.
The letter states that "fiscal responsibility and the fiscal plan require that any public policy change regarding taxes be executed so that it is revenue-neutral," and notes the proposed change was not included in the recently approved budget. The Board acknowledged the bill's intent as economic relief but warned that the cumulative impact of tax collection suspensions without recurring offsetting revenue sources poses a risk to Puerto Rico's fiscal stability.