2023 Laws of Puerto Rico › TITLE TWENTY-SEVEN - Public Service (§§ 1 — 2641) › PART II - Communications (§§ 265 — 539) › Chapter 25 - Telephone Authority (§§ 401 — 425) › § 411 - Tax exemption; payments in lieu of taxes

(a) It is hereby resolved and declared that the purposes of the Authority pursue the promotion of the safety, health and general welfare of the people of Puerto Rico, all of which constitute public ends for the benefit of the people and that the exercise of the powers conferred to said Authority by this chapter constitutes an essential government duty and, therefore, neither the Authority nor any corporation created by resolution under § 409 of this title, nor any company whose total common stock, excluding eligible paper, is owned by the Authority, shall be required to pay any taxes, fees, duties, license fees, charges, licenses or appraisals whatsoever of the Commonwealth of Puerto Rico or of any municipality, on real or personal property acquired or owned by it, or under its jurisdiction, control, possession or supervision, or on the income derived from or by the Authority or any of its companies and activities, including any corporation created by resolution under § 409 of this title, and any other company whose total common stock, excluding eligibility stock, is owned by the Authority.
(b) On or before the 15th of April of each year, the Authority shall pay to the Secretary of the Treasury, in lieu of taxes, the total amount that it paid in lieu of taxes during Fiscal Year 1995-96, as certified by the Director of the Office of Management and Budget and the Telephone Authority, which the Government of Puerto Rico shall use to answer to the needs of the municipalities, the Department of Education and any other legitimate purpose, in the proportion determined in the budget of the Government. In addition, the total received by the Authority from the sale of Telefónica Larga Distancia de Puerto Rico, Inc. and Telecomunicaciones Ultramarinas de Puerto Rico stock, after the expenses incurred with regard to said sale have been paid, shall also be contributed to the General Fund as a payment in lieu of additional taxes. Each of said contributions shall be made by the Authority within ten days after their receipt. The Secretary of the Treasury shall deposit the total amount received from the Authority in the General Fund of the Commonwealth Treasury. The contribution of the Authority shall be subordinated to the cash flow stipulations of the Bond Trust Contract of the Authority. For the purposes of § 621 of Title 18, the payments made to the Secretary of the Treasury, pursuant to what is stipulated herein, shall not constitute interest charged under the laws of the Commonwealth of Puerto Rico. The Authority shall not have to make the payments provided in this subsection as of the fiscal year in which the obligation of the P.R.T.C. to pay property taxes commences, as provided in the Joint Resolution that approved the sale of the P.R.T.C. stock.
(c) The Authority and any corporation created by resolution under § 409 of this title and any company whose total common stock, excluding eligible paper, is owned by the Authority, shall be exempt from the payment of all types of charges, internal revenue stamps and vouchers, duties, fees, taxes or levies of any nature required at present or to be required in the future for the handling of judicial procedures, the issue of certifications in all offices and dependencies of the Commonwealth of Puerto Rico or its municipalities, the execution of public documents and the registration thereof in any registry of the Commonwealth.
History —May 6, 1974, No. 25, Part 1, p. 136, § 11; July 29, 1991, No. 33; § 1; Aug. 12, 1994, No. 74, § 1; Sept. 12, 1996, No. 215, § 12; June 13, 1998, No. 85, § 6; renumbered as § 10 and amended on June 24, 1998, No. 94, § 12; June 17, 1999, No. 132, § 1.