Federated mayors ask the Board to halt a $52.6 million hit to the municipalities

On July 9, 2026, Ey Boricua reports that the Federation of Mayors of Puerto Rico warned that eliminating the inventory tax on prescription medicines represents a preliminary $52.6 million reduction in municipal collections, a figure that could rise when the filing of pending returns concludes. The organization's president, Gabriel Hernández, put it in a meeting with the executive director of the Financial Oversight Board, Robert F. Mujica Jr.

Gabriel Hernández held that any legislation that reduces municipal revenues must include a permanent source of financing. As an alternative, the Federation proposed using the Municipal Services Consolidation Fund, which holds approximately $66 million. The meeting also discussed the release of $35 million destined for the Municipal Highways Improvement Plan, administered by DTOP under OGP custody and subject to Board approval. The Federation favors a distribution according to the extent of the road network, the condition of the highways, and each city hall's fiscal capacity. Another topic was integrating the municipal sales-and-use tax into the Unified Internal Revenue System and a Hacienda pilot to pay the municipal license tax through that platform. Camuy, Gabriel Hernández said, is ahead. The organization also asked for clarity on Act 141-2024, which raised to $500,000 the threshold for certain public-works contracting processes. He said follow-up will continue until agreements are reached on revenues, infrastructure, and tax administration.

On July 20, Metro covered another Board letter on $20 million in legislative funds for municipalities. That is another line item and another date. On July 13, Metro reported the Association of Mayors' mission in Washington. Federation and Association are not fused. The reader who wants the meeting with Robert F. Mujica Jr. has the Ey Boricua URL at the foot.

Source: Ey Boricua. https://eyboricua.com/alcaldes-federados-le-piden-a-la-junta-frenar-un-golpe-de-52-6-millones-a-los-municipios/