Puerto Rican Tax Initiative Jumps Sales Tax Rate Above 10 Percent

Puerto Rico's governor on Friday signed into law a tax bill expected to provide the commonwealth with about $1.2 billion in much-needed additional tax revenue for the next fiscal year.
Governor Alejandro Garcia Padilla signed the tax law, which allows Puerto Rico to pursue negotiations with hedge funds and other creditors over a bond deal of up to $2.95 billion. Finance officials have said the island could run out of money by the end of September without financing.
The key part the tax plan is an increase in the local sales tax to 11.5 percent from its current 7 percent.