Strengthening Financial Autonomy
According to the draft of the 2026 Revenue Law, Jalisco’s own incomes are projected to grow by 7.5% in the current currency, while federal incomes are expected to increase by 3.5%.
Luis García Sotelo, the head of Jalisco’s Public Finance Secretariat, announced that the state government will reinforce its strategy to increase own incomes and reduce dependency on federal resources during the current administration.
The goal is to reach 25% of the total state budget from own incomes, thereby enhancing Jalisco’s financial autonomy. García Sotelo stated, “A growth rate higher than federal transfers will allow us to have more own incomes each year, gradually approaching 25% financial autonomy.”
He emphasized that a decrease in federal participations or incomes directly affects an entity’s financing capacity.
Local Revenue Growth
García Sotelo highlighted that Jalisco has consistently grown its local revenue collection and anticipates this growth to surpass federal transfers in the upcoming fiscal year.
The draft 2026 Revenue Law, sent by the state executive to the Congress for analysis and approval, projects a 7.5% increase in current pesos for own incomes, rising from 23,905 million pesos in the current year to 25,963 million pesos in the following year.
Meanwhile, federal incomes are projected to rise from 150,555 million pesos in 2025 to 155,856 million pesos in 2026 (still pending approval in the Union Congress), representing a 3.5% increase from the previous year.
Increase in Taxes and Fees
To boost state revenue, the Public Finance Secretariat proposed in the 2026 Revenue Law project to increase charges for services and licenses, such as vehicle renewal and motorcycle driving licenses.
García Sotelo noted that while there is room to broaden the tax base, caution will be exercised by analyzing economic segments with higher contribution capacity to avoid affecting more vulnerable sectors.
Among the proposed increases are raising the tax on raffle and lottery sales from 10% to 12% by 2026, and the Personal Non-Subordinate Labor Remuneration (RTP) tax from 3% to 4% currently, to 5% in 2026.
The Hotel Occupancy Tax (ISH) would rise from 4% this year to 5% in 2026, while expenditures for betting games would increase from 8% currently to 10% next year.
Regarding fees, the 2026 Revenue Law proposal suggests raising the vehicle renewal fee from 900 pesos this year to 1,000 pesos in 2026, while the motorcycle renewal fee would go from 385 to 600 pesos in the following year.
Key Questions and Answers
- What is Jalisco’s goal with its own incomes? Jalisco aims to have own incomes constitute 25% of the total state budget, enhancing its financial autonomy.
- How does the draft 2026 Revenue Law project own incomes to grow? The law projects a 7.5% increase in current pesos for own incomes, rising from 23,905 million pesos in the current year to 25,963 million pesos in the following year.
- What federal income changes are anticipated? Federal incomes are projected to increase by 3.5% from 150,555 million pesos in 2025 to 155,856 million pesos in 2026.
- How will Jalisco increase its own incomes? The state plans to boost revenue through increased charges for services and licenses, as well as raising various taxes and fees.
- Which specific taxes and fees are being increased? Proposed increases include raising the tax on raffle and lottery sales from 10% to 12%, Personal Non-Subordinate Labor Remuneration (RTP) tax from 3% to 5%, Hotel Occupancy Tax (ISH) from 4% to 5%, and various fees for vehicle and motorcycle renewals.
