2023 Laws of Puerto Rico › TITLE SEVENTEEN - Housing (§§ 1 — 1546) › Chapter 3 - Housing Authorities (§§ 31 — 77) › § 53 - Housing Authorities law—Exemption from taxes, fees, excises, etc

The property of an authority is hereby declared to be public property used for essential public and governmental purposes and such property and authority and all the securities, titles, rights, and obligations of such authority shall be exempt from all taxes or special imposts and from all fees and excises of whatever class or nature of the Government of the Commonwealth of Puerto Rico, its municipalities and other subdivisions or any other taxing body. Provided, however, That an authority may bind itself to make payments to the Government of the Commonwealth of Puerto Rico or to any municipality or other subdivision or taxing body, in lieu of property taxes, or for improvements, services and facilities furnished by any such governmental body, for any year or period of years, as the authority, with the approval of the federal government in the instance of housing projects developed with federal aid, finds consistent with the maintenance of the purposes of low-rent housing projects or with the achievement of the purposes of §§ 31—38, 39—45, 46—55 of this title.
Without prejudice to the generality of the exemptions above established, and in conformity therewith, it is hereby declared that the public or private documents and copies thereof executed by or in favor of any authority, and the recording of same in the registries of property of Puerto Rico; the filing and subsequent prosecution of judicial actions or proceedings; the materials, implements, equipment, machinery, and accessories directly obtained in Puerto Rico by said authorities, whether through introduction, local purchase, purchase from entities exempt, or purchase of stock from local manufacturers, when such materials, implements, equipment and machinery are intended to be, and ultimately are, used in the execution of any housing project, and the licenses for the use of all kinds of motor vehicles, are hereby exempt from all kinds of taxes, imposts, fees, or excises of whatever class or nature levied under the laws of Puerto Rico.
Provided, further, That there shall also be exempt from the payments of Commonwealth excises the materials introduced or locally acquired by contractors in charge of the construction of a project of any such authority, and which materials are intended to be, and ultimately are, permanently incorporated into said work, as well as the equipment and implements which, until their total depreciation or deterioration, may be used by said contractors in the execution of such projects.
Provided, likewise, That if after July 1, 1950, any importer, distributor or local manufacturer should pay taxes lawfully due on or after said date on articles exempt by §§ 31—38, 39—45, 46—55 of this title which are subsequently sold to any housing authority of Puerto Rico or to a contractor in charge of a project of any such authority, thus transferring thereto the excise taxes in the selling price, and it is ascertained to the satisfaction of the Secretary of the Treasury that the over-all price is not higher than the price charged to the general public, the Secretary of the Treasury shall, upon claim of the authority or the contractor, proceed to reimburse to the claimant, with the prior acquiescence of the importer or distributor, the total amount of the excise taxes transferred, excluding penalties; Provided, also, That such exemption shall not be construed as covering gasoline or any other fuel, or parts and accessories for any kind of vehicles; and Provided, finally, That both the authorities and contractors shall be obliged to comply with the provisions of § 16-F of the Internal Revenue Act, added thereto by Act No. 138, approved April 28, 1949.
History —May 6, 1938, No. 126, p. 253, § 22; Apr. 17, 1946, No. 339, p. 912, § 1; May 9, 1947, No. 96, p. 224, § 1; Apr. 26, 1950, No. 118, p. 300, § 1; June 23, 1956, No. 88, p. 576, § 2.