2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART I (§§ 5001 — 5252) › Chapter 247 - Exemptions From Property Taxes (§§ 5151 — 5200) › § 5192 - Exemption for lands under intensive agricultural use, and governing principles for the granting of incentives

Sections 5192-5200 of this title shall apply to the exemption of any property taxes on lands under intensive agricultural use; provided, that the provisions of this Act are complied with.
In the evaluation, analysis, consideration, award, renegotiation, and revision of any incentive or benefit granted under §§ 5192-5200 of this title, the Department of Agriculture of Puerto Rico and the Secretary thereof shall be required to oversee and ensure compliance with the following governing principles as provided below:
(a) Jobs.— The incentivized activity and the agricultural business shall promote the creation of new jobs.
(b) Proof of sale of the agricultural harvest.— The incentivized activity and the agricultural business shall show, in the judgment of the Secretary of Agriculture, that the agricultural product that led to the granting of the incentive has been sowed, harvested, and sold.
(c) Sound integration.— The conceptual design and planning of the incentivized activity and the agricultural business shall be carried out, first of all, taking into account environmental, geographical, and physical aspects, as well as the materials and goods that are abundantly available in the site where it is to be developed.
(d) Commitment to economic activity.— The incentivized activity and the agricultural business shall acquire raw materials and products manufactured in Puerto Rico for the construction, maintenance, renovation or expansion of the physical facilities thereof, as the case may be. If the purchase of said products cannot be financially justified when taking into account criteria such as the quality, quantity, price, or availability of these products in Puerto Rico, the Secretary of Agriculture may issue a certificate attesting to such fact.
(e) Transfer of knowledge.— The incentivized activity and the agricultural business shall acquire services from professionals or enterprises with a presence in Puerto Rico. However, if this is not possible due to criteria such as availability, experience, specificity, or skill, or any other valid reason recognized by the Secretary of Agriculture, the agricultural business may acquire such services through an intermediary with a presence in Puerto Rico, which shall contract directly with the service provider chosen by the agricultural business, in order to receive the requested services.
The term “services” shall mean, but the list below shall not be construed as limiting the Secretary of Agriculture to include others by regulations, as the contracting of jobs related to:
(1) Surveying, the production of construction plans, as well as engineering and architectural designs, and related services;
(2) construction and all that pertains to this sector;
(3) financial, environmental, technological, scientific, management, marketing, human resources, and auditing consulting services;
(4) advertising, public relations, commercial art, and graphic design services; and
(5) security, or facility maintenance.
(f) Financial commitment.— The incentivized activity and the agricultural business shall submit proof that they use the services of, and that they deposit a significant amount of the income derived from their economic activity in, banking and/or cooperative institutions with a presence in Puerto Rico. If the financial activity cannot be financially justified when taking into account criteria such as the availability or accessibility of these institutions in Puerto Rico, the Secretary of Agriculture may issue a certificate attesting to such fact.
The Secretary of Agriculture shall be the official responsible, first and foremost, for verifying and ensuring that the agricultural businesses meet the eligibility requirements established in this section and in this part.
If the lands under intensive agricultural use and the farmer partially meet the requirements established in this section, the Secretary of Agriculture shall be required to establish a formula that allows for the quantification of the aforementioned factors, and for the subtraction of the requirement that has not been met from the total percentage of the specific credit, in order to obtain the exact percentage of the benefit in question.
The Secretary of Agriculture shall draft an annual report to be filed with the Governor and the Legislative Assembly, stating in detail with figures and statistics the oversight, impact, and compliance with the provisions of this section.
The governing principles set forth herein shall apply to all lands under intensive agricultural use and farmers that apply for any of the benefits granted under this part as of December 1 st, 2015. However, the provisions of this section shall apply to any request for renegotiation made by any lands under intensive agricultural use and the farmer thereof that has not been signed and completed prior to the aforementioned date.
History —Aug. 30, 1991, No. 83, § 5.42, renumbered as § 5.43 and amended on Aug. 6, 1992, No. 45, §§ 5, 8; Nov. 17, 2015, No. 187, § 46.