2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART V - Sales and Use Tax (§§ 32001 — 32171) › Chapter 1045 - Deduction, Credit and Refund (§§ 32121 — 32130) › § 32129 - Municipal Improvement Fund—Creation

(a) Creation of the Fund.— Creation of the Fund.-A “Municipal Improvement Fund” is hereby created:
(1) For periods before July 1, 2014, the Municipal Improvement Fund shall be nourished from a special fund to be created by the Commonwealth of Puerto Rico; and
(2) For periods beginning after July 1, 2014, the Municipal Improvement Fund shall be nourished in accordance with the provisions, terms, and other conditions set forth in the Municipal Administration Fund Act and the provisions regarding the increase in the state IVU established in §§ 32021 and 32022 of this title.
The moneys available in the Municipal Improvement Fund shall be allocated distributed to the municipalities through legislation by the Legislative Assembly of Puerto Rico to be appropriated for capital works and improvement projects in the municipalities, such as:
(1) Improvements to schools of the public education system belonging to the Commonwealth or the municipalities.
(2) Capital works and improvements in low-income communities.
(3) Capital works and improvements in Commonwealth or municipal public housing projects.
(4) Capital works and improvements in recreational or sports facilities.
(5) Capital works and improvements.
(6) Housing rehabilitation or construction works for low-income citizens within capital works and improvement projects.
(7) Acquisition and maintenance of personal property for schools of the public education system and nonprofit organizations.
(8) Up to fifteen percent (15%) of the resources of the Municipal Improvement Fund may be allocated to address situations in connection with direct and essential services provided to the people such as: services aimed at servicing the children, youth, and elderly populations, as well as direct services aimed at improving the quality of life of the residents of disadvantaged communities.
These Funds shall be allocated to municipalities through legislation by the Legislative Assembly in accordance with the following parameters:
(a) To be used by programs duly adopted and established whose requirements and controls are established by regulations.
(b) No funds shall be used to defray operating expenses or to replace funds previously appropriated for payroll or contracts under the item of the services described herein.
(c) Allocated funds shall be used within one (1) year after the receipt thereof. Once such term elapses, any balance shall be reallocated by the Legislative Assembly.
(d) The entity receiving the funds shall, in turn, submit a report to the contracting municipality and to the Office of the Secretary of the Senate and of the Clerk of the House of Representatives at the end of the one-year term provided in clause (c). Said report shall include, but not be limited to, the number of jobs generated and the population served with the allocated funds. Reports shall include, but not be limited to, an itemization of the services rendered, the population served, the amount of funds used and an evaluation or metrics of the effectiveness of the service rendered in improving the quality of life of the people served. These conditions must be included in the service agreement between the municipality or government entity and the contracting entity.
History —Jan. 31, 2011, No. 1, § 4050.09; Nov. 22, 2011, No. 231, § 1; June 30, 2013, No. 40, § 49; Jan. 24, 2014, No. 19, § 10; Sept. 30, 2015, No. 159, § 22.