26 May 2022 Puerto Rico's Treasury Secretary announces sales and use tax holiday for hurricane-season purchases will take place from June 17-June 19, 2022 Puerto Rico's Treasury Secretary announced the sales and use tax (SUT) holiday for hurricane-season purchases, enacted by Act 20-2022, will take place June 17, 2022 to June 19, 2022. The SUT holiday was originally scheduled for the last weekend in May. Because merchants were concerned that they would not be able to obtain enough inventory in time for the SUT holiday, the Secretary exercised his discretion for this first year of the statute's implementation and postponed the holiday to the weekend of June 17. Taxpayers may purchase water tanks and containers, shutters, hardware, untreated wood panels, water and nonperishable food without the imposition of SUT. During the SUT holiday, they also may purchase generators, batteries, flashlights and emergency solar equipment, among other things. Additionally, the SUT holiday applies to purchases made (1) under layaway plans, (2) with rain checks, (3) by mail, telephone or email, (4) over the internet or (5) with gift cards. For more information about the SUT holiday, see Tax Alert 2022-0761. The Financial Oversight and Management Board for Puerto Rico (FOBMPR) recently announced that the tax holiday included in Act 20 is not consistent with the Fiscal Plan because it is not revenue neutral. For the tax holiday to take place, the FOBMPR stated the Puerto Rican government must establish offsetting revenue measures.
Document ID: 2022-0847 | |||||||||||||||||||||||||||