P.R. Laws tit. 17, § 1481l
Any residence established within the conceptual framework of “assisted living” shall be exempt from payments on the percentage (%) of municipal licenses, the payment of personal and real property taxes, and income tax for the first two (2) years of operation pursuant to this chapter.
Only for the purpose of granting the exemptions established herein, the Department of Housing and the Secretary thereof shall be required to oversee and ensure compliance with the governing principles established in §§ 893 and 1470 of this title, as well as the remaining provisions of this chapter and its regulations.
The Secretary of Housing shall be required and responsible for preparing a Certificate of Compliance every two years, once the owners of incentivized housing projects validate, in the judgment of said official, that they have met the requirements set forth herein. Every two years, the Secretary of Housing shall verify the information submitted by the owners of incentivized housing projects so that the Certificate of Compliance is issued not later than the fifteenth (15 th) day of the second (2 nd) month after the close of the taxable year of the applicant.
The Certificate of Compliance shall include, in turn, the following information regarding the owner of the incentivized housing project: the name of the project; the cadastre number of the property or properties connected to the project; the merchant registration number; the account connected to the business as required by the Puerto Rico Internal Revenue Code; the employer identification number; and the information required by §§ 1141 et seq. of Title 23, better known as the “Fiscal Information and Permit Control Act”.
The Certificate of Compliance shall be issued by the Secretary of Housing through the Interagency Validation Portal for the Granting of Incentives for the Economic Development of Puerto Rico to the agencies, public corporations and municipalities responsible for granting the benefits or incentives established in this section. However, during the period in which the Portal is still not operating, it shall be the duty of the Secretary to issue the Certificate of Compliance to the agencies, public corporations, and municipalities responsible for awarding the benefits or incentives established herein following the ordinary process. The filing of the Certificate of Compliance by the owner of an incentivized housing project shall be an essential requirement for the agency, public corporation, or municipality to grant the benefit or incentive provided for in this section.
Actions taken by the Secretary of the Department of the Treasury, the Executive Director of the Municipal Revenues Collection Center (CRIM), or any other government official or body, or public corporation concerned, in connection with the qualification process for the granting of the benefits or incentives under this chapter, shall be limited to the taxation aspects of the granting of the benefit or incentive in question, upon the issuance of a valid Certificate of Compliance as provided in this section. The Secretary of Housing shall be responsible, first and foremost, for overseeing eligibility under any and all provisions of this chapter. However, the Secretary of the Department of the Treasury, the Executive Director of the Municipal Revenues Collection Center (CRIM), or any other government official or body, or public corporation concerned with any of the benefits or incentives granted by virtue of this chapter may contact the applicant and the Department of Housing should further information be needed to validate data on the Certificate of Compliance, and shall notify and request the applicant to supply such information in order to rectify the situation. The Secretary of the Department of the Treasury, or the Executive Director of the Municipal Revenues Collection Center may deny the tax incentives or benefits requested if, in their judgment, the information requested has not been supplied. Moreover, the provisions of this chapter shall not preclude in any manner the power conferred to the Secretary of the Treasury by virtue of § 33202 of Title 13, known as the “Puerto Rico Internal Revenue Code of 2011”; and, if necessary, the power to revoke any incentives previously granted by virtue of the Certificate of Compliance, in accordance with the corresponding act; or the power to refer the case to the pertinent agency or public corporation for the corresponding action.
However, in the case of the tax exemptions on property and municipal license taxes, for purposes of promoting the creation and establishment of housing projects established within the conceptual framework of “assisted living” or contributing toward those already in operation, the municipalities whose fiscal capability allows shall exercise their discretion to grant to said residences exemptions from the payment of property and municipal license taxes. The procedures set forth by law shall be followed for the approval of these exemptions.
At the end of the aforementioned term of two (2) years, the Legislative Assembly shall evaluate said exemption and shall determine its continuation or its termination.
History —Sept. 3, 2003, No. 244, § 15; Nov. 17, 2015, No. 187, § 83; Dec. 28, 2016, No. 208, § 21.