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) › § 33265 - Attachment and sale of real property

(a) If it is decided that, in the first instance, the personal property of a delinquent taxpayer is to be attached, and such property is not sufficient to pay the assessed debts, fines, interest, surcharges, penalties, and costs he/she owes to the Government of Puerto Rico; or if the taxpayer has no attachable personal property to be sold, the agent of the collection district in which said taxpayer resides shall attach the real property of such debtor which is not exempt from attachment pursuant to the provisions of § 33261 of this title and give notice thereof to the Secretary; and at any time after having received such notice, the Secretary shall order the agent to sell the attached real property of said delinquent taxpayer to pay such assessed debts, fines, interest, surcharges, penalties, and costs.
(b) The real property thus attached shall be sold at public auction, at a minimum rate that shall be the value of the delinquent taxpayer’s equity in the attached property or the value of the credit that represents the tax debt, whichever amount is the less. Equity shall be understood to be the difference between the real value of the property and the amount for which it is mortgaged. The credit that represents the tax debt includes assessed debts, fines, interest, surcharges, penalties, and costs.
(c) The minimum adjudication rate shall be fixed by appraisal of such real property, to be conducted by the Secretary before giving public notice of the auction. The minimum rate shall be confidential between the Secretary and the taxpayer. However, the agent may announce such rate while holding the auction, after receiving the best offer, only if such offer does not exceed the minimum rate.
(d) The number of auctions to be held in each sale, as well as the minimum rate to be applied in each, shall be determined by the Secretary by regulations.
(e) If there are no bids or adjudications in any of such auctions in favor of a private person, the Government of Puerto Rico may, through the Internal Revenue Agent holding the auction, adjudicate to itself such attached real property for the amount of the corresponding minimum adjudication rate.
(f) If in any auction held, the real property subject to the demand for payment procedure is adjudicated to a third party and the amount obtained at auction is not sufficient to cover the amount owed on account of assessed debts, fines, interest, surcharges, penalties, and costs, the Government of Puerto Rico may collect from such delinquent taxpayer the amount of taxes, levies, and fines, together with their surcharges, interest, and penalties not covered as a result of the auction held, as soon as the Secretary acquires knowledge that such delinquent taxpayer is in possession or is the owner of attachable personal or real property, in which case, the demand for payment and collection procedures established in this Code shall be pursued against him/her.
(g) The person to whom the real property is adjudicated at public auction is acquiring such property as is and shall not be entitled to request any warranty against defects from the Secretary.
(h) If it is decided that taxes shall be collected by the attachment and sale of the real property of the delinquent taxpayer, without first having attached and sold such taxpayer’s personal property, the provisions of this section shall be followed in all matters applicable.
History —Jan. 31, 2011, No. 1, § 6060.05, retroactive to Jan. 1, 2011.