2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART VII - Administrative Provisions, Procedures, Interests, Penalties, and Additions to Taxes (§§ 33001 — 33423) › Chapter 1066 - Procedures for Demand for Payment, Attachment, and Sale of Taxpayer’s Property (§§ 33261 — 33280) › § 33280 - Release of lien or discharge of property

(a) Release of lien.— The Secretary shall issue a certificate of release of any lien imposed pursuant to this chapter with respect to any tax debt when:
(1) Liability satisfied or unenforceable.— The Secretary finds that the liability for the amount assessed, together with all interest, fines, penalties, and surcharges, have been fully satisfied or have become legally unenforceable; or
(2) Bond accepted.— There is furnished to the Secretary and accepted by him/her a bond that is conditioned upon the payment of the amount assessed, together with all interest, fines, penalties, and surcharges, subject to the terms, conditions, and form determined by the Secretary in those circumstances that the Secretary deems to be prudent and in the best interest of the Government of Puerto Rico.
(b) Discharge of property.— The Secretary may issue a certificate of discharge of any part of the property or properties subject to a lien imposed with respect to any tax debt in the following circumstances:
(1) Property double the amount of the liability.— The Secretary may issue a certificate of discharge of any part of the property subject to any lien imposed under this chapter if the Secretary finds that the fair market value of that part of such property remaining subject to the lien is at least double the amount of:
(A) The unsatisfied liability secured by such lien, and
(B) the amount of all other liens upon such property which have priority over such lien.
(2) Part payment; interest of Government of Puerto Rico valueless.— The Secretary may issue a certificate of discharge of any part of the property subject to the lien if:
(A) There is paid over to the Secretary in partial satisfaction of the liability secured by the lien an amount determined by the Secretary, which shall not be less than the value (as determined by the Secretary) of the interest of the Government of Puerto Rico in the part to be so discharged, or
(B) the Secretary determines at any time that the interest of the Government of Puerto Rico in the part to be so discharged has no value.
In determining the value of the interest of the Government of Puerto Rico in the part to be so discharged, the Secretary shall give consideration to the value of such part and to such liens thereon as have priority over the lien of the Government of Puerto Rico.
(3) Substitution of proceeds of sale.— The Secretary may issue a certificate of discharge of any part of the property subject to the lien if such part of the property is sold and, pursuant to an agreement with the Secretary, the proceeds of such sale are to be held, as a fund subject to the liens and claims of the Government of Puerto Rico, in the same manner and with the same priority as such liens and claims had with respect to the discharged property.
(4) Right of substitution of value.—
(A) In general.— At the request of the owner of any property subject to any lien, the Secretary shall issue, at his discretion, a certificate of discharge of such property if such owner:
(i) Deposits with the Secretary an amount of money equal to the value of the interest of the Government of Puerto Rico (as determined by the Secretary) in the property; or
(ii) furnishes a bond acceptable to the Secretary in a like amount, in that form and subject to the terms and conditions determined by the Secretary, in such circumstances as the Secretary may deem to be prudent, and in the best interest of the Government of Puerto Rico.
(B) Refund of deposit with interest and release of bond.— The Secretary shall refund in whole or in part the amount so deposited (without interest), and shall release such bond in whole or in part, to the extent that the Secretary determines that:
(i) The unsatisfied liability giving rise to the lien can be satisfied from a source other than such property; or
(ii) the value of the interest of the Government of Puerto Rico in the property is less than the Secretary’s prior determination of such value.
(C) Use of deposit.— The Secretary may, at any given time or at the time prescribed agreed between the Secretary and the owner of the property:
(i) Apply the amount deposited, or collect on such bond, to the extent necessary to satisfy the unsatisfied liability secured by the lien; and
(ii) refund any portion of the amount deposited which is not used to satisfy such liability.
(D) Exception.— Paragraph (A) of this clause shall not apply if the owner of the property is the person whose unsatisfied liability gave rise to the lien.
(c) Subordination of lien.— The Secretary may issue a certificate of subordination of any lien imposed upon any part of the property subject to such lien if:
(1) There is paid over to the Secretary an amount equal to the amount of the lien or interest to which the certificate subordinates the lien of the Government of Puerto Rico,
(2) the Secretary believes that the amount realizable by the Government of Puerto Rico from the property to which the certificate relates, or from any other property subject to the lien, will ultimately be increased by reason of the issuance of such certificate and that the ultimate collection of the tax liability will be facilitated by such subordination, or
(3) the Secretary determines that the Government of Puerto Rico will be adequately secured after such subordination.
(d) Nonattachment of lien.— If the Secretary determines that, because of confusion of names or otherwise, any person (other than the person against whom the tax was assessed) is or may be injured by the appearance that a notice of lien refers to such person, the Secretary may issue a certificate that the lien does not attach to the property of such person.
(e) Effect of certificate.— A certificate of release, subordination, or discharge issued by the Secretary in accordance with this section and filed with the Property Registry corresponding to the place of residence of the debtor, or in such places where real property belonging to the debtor or subject to lien is located shall be conclusive of the release, subordination, or discharge of the property as provided in such certificate. Notwithstanding the foregoing, any lien imposed by this chapter shall attach any property with respect to which a certificate of release, subordination, or discharge has been issued, that is reacquired by the person liable for the tax after such certificate has been issued.
History —Jan. 31, 2011, No. 1, added as § 6060.20 on Dec. 10, 2011, No. 232, § 180.