Spring 2007-01 New Tax Code amendments!

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Number 67
Spring 2007

New Tax Code amendments!

Raw materials exemption

Act Number 24 of March 8, 2007, exempts from the sale tax all raw materials and finished products to be used in a manufacturing process. The law makes special mention of electric energy and cement. Act 24 is retroactive to November 15, 2006.

Motor vehicle excise tax

Act Number 19 of March 6, 2007, modified the excise tax to be paid for the importation and manufacture of motor vehicles (both new and used). The law presents two tables: one for vehicles imported or manufactured prior to March 16, 2007, and the second for those after March 15, 2007.

In both cases the minimum tax is $750. The maximum in the first table is 40%, and that in the second table is $10,886 plus 40% of the excess over $44,890.

Excise tax on sugar

Act Number 22 of March 8, 2007, imposes an excise tax on sugar. The rate is 14¢ for each pound or fraction of a pound. The tax applies to all types of sugar and sugar substitutes, whether natural or man-made.

Sale tax fund for movies

Act Number 23 of March 8, 2007, assigns $270,00 monthly from sale tax collections to a fund to develop the motion picture industry.

© 2007 Goldman Antonetti & Cordova, LLC