Despite court ruling, Puerto Vallarta plans to apply a modified foreign tourist tax

Days after Mexico’s Supreme Court tossed out a tax on foreign tourists, calling it “vague and unconstitutional,” Puerto Vallarta municipal authorities say they have addressed the Court’s concerns and will apply the fee beginning Jan. 1. 

Municipal treasurer Raúl Rodrigo Pérez informed a local media outlet that the City Council made the modifications requested by the Supreme Court and expects the new wording to be approved in time to begin collecting the tax next year. 

cruise ships in PV
Foreign visitors arriving in Puerto Vallarta on cruise ships can pay upon docking. Others can pay at the airport, at their hotel or at certain municipal government offices. (Princess Cruise Lines)

The municipal government had anticipated the Court’s ruling, Pérez said, and had been preparing its response.

“We had expected this scenario,” he said. “We knew it could happen, and we knew how to resolve it since the ruling offered solutions that were implemented.”

On Dec. 1, the Court annulled a tax reform approved in 2024, ruling that the tax — a one-time annual 160 peso fee (US $9) — failed to adhere to two key constitutional principles: tax legality and legal certainty.

The Court determined that the regulation contained ambiguous wording, and did not precisely define the specific services, public goods or spaces for which the payment was being collected. 

It further said that the ambiguity of the tax left foreign tourists uncertain about the purpose of the mandatory payment, allowing for the potential arbitrary enforcement by the authorities.

Addressing the consideration that a tax must be clearly and reasonably linked to the cost and provision of a specific public service, the municipal government reworded its revenue bill to clarify that the revenue generated will be used for public works and, in general, tourism infrastructure.

The municipal government sent the corrected regulation to the state Congress last week which quickly approved it.

Pérez is confident that all necessary steps were taken to win approval from the Court.

“I’m sure that starting in January, we will begin collecting the new tax, which will translate into more projects for Puerto Vallarta,” he said.

Pérez defended the tax proposal, saying it is not coercive. “It’s a request for support so that each time [tourists] come to Puerto Vallarta, they find it even more beautiful,” he said.

The collection process is designed to be simple and non-intrusive. The cruise ship terminal, the airport and local hotels will provide information to visitors. Tourists will be able to contribute at hotel lobbies, specialized modules and designated Treasury offices, all staffed by trained personnel, Pérez said.

The tax was proposed by Puerto Vallarta Mayor Luis Ernesto Munguía and approved by the state Congress in November 2024. It was expected that the tax would generate 200 million pesos (US $11 million) annually for the municipality.

The Court took up the case after the National Human Rights Commission filed a constitutional challenge asserting that Article 80 of Puerto Vallarta’s 2025 Revenue Law lacked precision and violated principles of tax certainty.

With reports from Reforma, Milenio, Tribuna de la Bahia and Banderas News


Your turn to weigh in:

Is a tax on foreign tourists a good way to address the burden mass tourism places on local infrastructure? Let us know your reasoning in the comments.

9 COMMENTS

Have something to say? Paid Subscribers get all access to make & read comments.
Nature trail in a semi-desert park with a wooden entrance sign that says in Spanish El Charco del Ingenio, jardin botanica. The entrance to the trail is winding and ringed on both sides by stone walls with landscaped cacti of various types.

MND Local: Fire put out quickly at San Miguel de Allende’s El Charco del Ingenio

0
The fire — the second at the nature reserve in about a year — was quickly put out but occurred amid heightened concern about local threats to the park's ecosystem.
Fire in Punta Zicatela, Oaxaca

Short circuit blamed for blaze that destroyed dozens of businesses in Puerto Escondido

0
According to preliminary reports from authorities, the fire started around 1:15 a.m. in the restaurant area located on Avenida del Morro, along the beach strip of Punta Zicatela, Oaxaca.
A large white hearse laden with piles of white roses drives down a street followed by other cars decked with flowers, while onlookers crowd the sidewalks

Mexico’s week in review: El Mencho’s burial, a sinking peso and the World Cup countdown

0
With El Mencho buried and Jalisco stabilizing, Mexico turned its attention to election reform and World Cup preparations. Didn't catch every story? Here's what you missed the first week of March.
BETA Version - Powered by Perplexity