2023 Laws of Puerto Rico › TITLE TWENTY-THREE - Public Planning and Development (§§ 1 — 11273) › PART VI - Tourism (§§ 6001 — 6982i) › Chapter 152 - Puerto Rico Convention Center District Act (§§ 6401 — 6475) › Subchapter VI - Miscellaneous Acts (§§ 6461 — 6475) › § 6461 - Tax exemption—Authority

It is hereby determined and stated that the purposes for which the Authority is created and for which it shall exercise its powers are public purposes for the general benefit of the People of Puerto Rico, the hospitality industry of Puerto Rico and the Commonwealth of Puerto Rico, and that the exercise of the faculties and the rights conferred under this chapter constitute the performance of essential government functions. Therefore, the Authority shall be exempt from the payment of all taxes, excises, permits, tariffs, duties, costs and/or taxes on personal and real property levied by the Commonwealth of Puerto Rico or its municipalities on the properties of the Authority that have not been sold, leased, or otherwise transferred to third parties as private parcels, pursuant to this chapter, including, but not limited to taxes on articles levied by §§ 9001 et seq. of Title 13, including all the articles and construction materials to be used in projects of the Authority. To such effect, it is hereby expressly provided that the provisions of § 9004a of Title 13 shall not be applicable to the Authority or to any successor entity or instrumentality thereof. The Authority or its successor shall also be fully exempt from the payment of any taxes on income derived from any activity or enterprise of the Authority, and of the municipal excise taxes imposed pursuant to §§ 651 et seq. of Title 21, as amended, known as the “Municipal License Tax Act”. In addition, the Authority or its successor and its contractors or subcontractors shall be fully exempt from the municipal excise taxes on construction, levied by any municipal ordinance, pursuant to §§ 4001 et seq. of Title 21, as amended, known as the “Autonomous Municipalities Act of the Commonwealth of Puerto Rico of 1991”. The Authority shall also be exempted from the payment of all types of charges, internal revenue stamps and vouchers, fees or taxes required by law for judicial proceedings, the issue of certifications in all the offices and dependencies of the Commonwealth of Puerto Rico, and the granting of public or private documents of the Commonwealth of Puerto Rico. The contractors or subcontractors who perform work for the Authority shall determine their volume of business for the purposes of the municipal license fees, discounting the payments they are bound to pay to subcontractors under the primary contract with the Authority. The subcontractors that, in turn, use other subcontractors within the same project, shall also discount these payments from the determination of their volume of business. A contractor or subcontractor may discount the payments described in the above sentences from their respective volume of business, only if said contractor or subcontractor certifies to the Executive Director that he/she did not include an item in the contract signed for the works or services to be rendered, equivalent to the municipal license resulting from the volume of business discounted according to this section. Every contractor and subcontractor who performs work for the Authority shall file a copy of every contract related to said work within ten (10) calendar days from its execution, in the municipality or municipalities where said work shall be rendered, and shall provide the name, physical and mailing address, and employer number of every subcontractor. The Executive Director shall provide by regulations: the requirements and procedures to determine whether the contract thus signed complies with the provisions of this section, including the filing of a copy thereof in the corresponding municipality or municipalities, and the penalties for noncompliance with the provisions of this section.
History —Sept. 2, 2000, No. 351, § 6.01; Oct. 4, 2001, No. 142, § 29.