2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART IV - Excise Taxes (§§ 31601 — 31771) › Chapter 1033 - Exemptions to Taxes on Goods (§§ 31651 — 31671) › § 31655 - Public carrier vehicles

(a) The following vehicles shall be exempt from the excise tax imposed in § 31627 of this title, provided they are acquired to be devoted to transportation for pay:
(1) Every new or used motor vehicle initially registered with the Department of Transportation and Public Works by a person who, immediately after its acquisition, devotes it to public transportation for pay, shall be treated as public transportation (P).
(A) When the carrier is the owner of more than one motor vehicle and uses the same for public paid transportation of passengers, he/she shall be entitled to avail him/herself of this excise tax exemption on the first motor vehicle that he/she registers, but not on the second or any other thereon. Said first motor vehicle shall continue to benefit from the exemption granted herein in case of its sale, alienation or transfer, provided that the original acquirer has devoted it to public paid transportation of passengers for at least three (3) years.
(B) In the event that the owner of said motor vehicle owns more than one motor vehicle destined for public paid transportation of passengers, twenty percent (20%) of the excise tax imposed by § 31627 of this title shall be paid for the second motor vehicle and any other thereon. Said motor vehicles shall continue to benefit from the exemption granted herein in the event of sale, alienation or transfer, provided that the original acquirer has devoted it to public paid transportation of passengers for at least three (3) years. Motor vehicles devoted to school transportation shall also be exempt.
(2) Every heavy motor vehicle initially registered in the Department of Transportation and Public Works of Puerto Rico by a person who, as a public carrier, devotes it immediately after its acquisition to public paid freight transportation, and is considered as a working tool of its owner under the provisions of Sections 1-109 and 1-165 of Act No. 141 of July 20, 1960, as amended, and in § 1002(d) of this Title 27, also known as the “Puerto Rico Public Service Act”.
(A) When the owner of a heavy motor vehicle sells, alienates, or otherwise transfers the same to another person who does not devote the same immediately after its acquisition to the usage and conditions established in this clause, the new acquirer shall be required to pay the difference between the total exemption provided in this clause and the amount he/she would have to pay pursuant to this part. Said difference shall be computed taking into consideration the taxable price of said vehicle in Puerto Rico on the basis of which the excise tax was paid or the exemption granted, as the case may be, and the depreciation suffered.
(3) Every new or used motor vehicle acquired by a natural or juridical person who operates as a tourist transportation enterprise, if immediately after its acquisition, the vehicle is devoted to the transportation of passengers for direct or indirect pay. Said motor vehicle shall continue to enjoy the exemption herein granted in the case of sale, alienation, or transfer, provided that the original acquirer had devoted it to the transportation of passengers for pay and operated it regularly as a tourist transportation business for at least three (3) years.
(b) When the owner of a motor vehicle subject to the exemption established in subsection (a)(1) sells, alienates or otherwise transfers it to another person, the new acquirer shall continue to enjoy the exemption of the partial payment of the excise taxes granted, provided the original owner has complied with the use and conditions established in said clause, pursuant to applicable regulations. Every owner of a motor vehicle exempt from the payment of excise tax or subject to a partial payment thereof established in subsection (a)(1) who subsequently decides to destine it for personal use, shall continue to enjoy the exemption granted, provided he/she complies with the uses and conditions established in said clause.
(c) When an importer or dealer pays the excise tax on a motor vehicle and subsequently sells it for the purposes established in clauses (1) or (2) of subsection (a), the Secretary shall return to such importer or dealer any difference between the tax paid and the partial tax or applicable exemption according to said paragraphs, provided said difference has not been passed to the purchaser, and if so, the difference shall be returned to the latter.
History —Jan. 31, 2011, No. 1, § 3030.05, retroactive to Jan. 1, 2011.