Mexico’s Supreme Court (SCJN) has nixed the planned tourist tax on foreign visitors to Puerto Vallarta that was programmed to take effect in September.
In November 2024, Puerto Vallarta City Council announced the tax, which aimed to charge foreign tourists over the age of 14 a fee of 141 pesos (approximately US$7) for a 365-day period. Four months later, Jalisco’s legislature approved the proposal, which included exceptions for residents, cruise ship passengers, tourism sector workers and people with disabilities.
The SCJN declared the tax unconstitutional, citing the lack of clarity in the legislation. In a unanimous decision, the court ruled that the law violated the principles of legal certainty and transparency.
The tax was originally proposed by Puerto Vallarta Mayor Luis Munguía, who — just one month into his three-year term—argued that foreign tourists contribute significantly to municipal expenses for services such as security, waste management and public health.
While the city council had framed the tax as a voluntary contribution, the court determined that the wording of the law made the payment mandatory for visitors. The legal challenge was brought forward by the National Human Rights Commission, which argued that the tax was vague and lacked clarity regarding the specific public services that would benefit from the funds. The SCJN agreed with this reasoning, noting that the lack of specificity created uncertainty for both tourists and local authorities.
This tax had been modeled after similar measures in other popular tourist destinations, such as Cancún and the Riviera Maya, where visitor fees have been levied to support local infrastructure and sustainability efforts. In Puerto Vallarta, the city had planned to use the estimated 200 to 300 million pesos in annual revenue to fund projects aimed at improving public spaces, waste management, and other essential services.
Despite the court’s ruling, the city council has expressed interest in revisiting the tax in the future, with potential adjustments to ensure its compliance with constitutional guidelines. However, for now, the foreign tourist tax has been officially annulled, leaving the future of such initiatives uncertain.