2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter III - Establishing of Districts (§§ 6651 — 6658) › § 6653 - Municipal legislature; factors to be considered; municipal ordinance; tacit lawful lien; collection of imposts for profits; special fund

(1) The determination of the municipal legislature to authorize the establishment of the tourism improvement district and the imposition of the imposts for profits shall be based on the following factors:
(a) Whether all the statements contained in the petition have been established as being true and correct.
(b) Whether the establishment of the district is consistent with any applicable municipal plan involving the use of land, public infrastructure or public services.
(c) Whether the land area within the proposed district is sufficiently large and sufficiently compact.
(d) Whether the proposed improvement project or projects are compatible with the capacity and uses of the existing municipal facilities and services.
(e) Whether the district is a good alternative for providing tourist development services and facilities in the area to be served by the district.
(2) The municipal legislature shall have ninety (90) days, from the date the petition from the mayor is received, to reach a conclusion and issue the corresponding ordinance. The mayor shall have thirty (30) days from the receipt of the municipal ordinance to approve or deny the same.
(3) The ordinance authorizing the establishment of a tourism improvement district or the imposition of imposts for profits on all real property included in the district shall establish the following:
(a) The name of the district.
(b) The amount of funds expected to be collected through the imposts for profits.
(c) The term for which they shall be imposed.
(d) The formula to calculate the amount to be paid annually by each real property within the district.
(4) The associations are hereby authorized to collect by themselves the imposts for profits. Said authorization shall be included in the municipal ordinance that imposes the imposts for profits. The municipality shall send the Municipal Revenue Collection Center a copy of the ordinance with the purpose of officially notifying the existence of said impost for profits. The Municipal Revenue Collection Center shall recognize the authority of the associations to collect imposts for profits and shall not interfere in such collection process.
(5) The associations authorized through a municipal ordinance to collect imposts for profits shall have up to a maximum term of thirty (30) days from the date the ordinance is received to notify by certified mail all real property owners within the district of the imposts for profits to be paid, as well as their due date. In subsequent years, and until the term during which imposts for profits shall be imposed in accordance with the municipal ordinance elapses, the association shall notify at least every year, via certified mail to all real property owners of the amount to be paid for imposts for profits for such year, as well as their due date. In each notice, the real property owners shall be advised on the consequences of failure to pay the imposts for profits on their due date.
(6) The associations shall open a special account in a recognized banking institution to deposit the revenues collected on account of imposts for profits. Such account shall be audited on a yearly basis by a certified public accountant, as well as by the Municipal Revenue Collection Center, upon request of the municipality in which said tourism improvement district is located. The associations may only use the revenues collected on account of imposts for profits for the purposes authorized in the municipal ordinance, and they may use up to a maximum of five percent (5%) of said revenues for administrative expenditures directly related with the administration of the revenues. Said revenues shall be administered with the greatest diligence and it shall be the duty of the association to use the best accounting practices to keep an accurate record of all expenditures and revenues in connection with impost for profits.
(7) The municipal ordinances authorizing the creation of districts or the imposition of imposts for profits shall be published, at the expense of the petitioner, in a newspaper of general circulation once during the week following its approval by the mayor.
(8) The imposts for profits imposed on a property pursuant to the provisions of this chapter and the corresponding municipal ordinance, shall constitute a tacit lawful lien on said property, which shall have priority over any other lien regardless of their nature, whether they be imposed on the property before or after the lien securing the payment of the imposts for profits, except that such lien shall be lower than:
(a) The fiscal lien which secures the delinquent tax debts transferred in accordance with the terms set forth in § 5924 of this title.
(b) The lien related to the property tax levied by §§ 5001 et seq. of this title, known as the “Municipal Property Tax Act of 1991”, or any subsequent law.
(c) Any liens constituted before the effectiveness of this act.
(d) Any tacit lawful lien which secures the payment of any imposts for profits or taxes used to finance public infrastructure.
The tacit lawful lien on imposts for profits established in this chapter shall only secure the payment of the imposts for profits described in the municipal ordinance.
History —Aug. 8, 1998, No. 207, § 3.003; Dec. 16, 2009, No. 171, § 6. eff. 30 days after Dec. 16, 2009.