reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5956 - Elimination of interest, surcharges, and penalties on real property

Any taxpayer who, within a term of one hundred twenty (120) days from the effective date of the administrative order issued by the CRIM to implement this chapter, pays outstanding taxes on one or more real properties to the CRIM is hereby relieved from the payment of all interest, surcharges, and penalties accrued on the taxes thus paid and up to the date they are paid, except for such interest, surcharges, and penalties accrued in cases of fraud and on debts corresponding to Fiscal Year 2010-2011.
History —July 2, 2010, No. 71, § 6.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5957 - General provisions

Any taxpayer, or any person acting on his/her behalf, who makes efforts to pay during the effective term of this act and is unable to avail him/herself of the benefits provided in § 5952 or § 5956 of this title due to the CRIM’s inability to supply a tax statement, according to the books of the CRIM, may avail him/herself of these benefits once such information is supplied under the same applicable parameters set forth in this chapter.
Taxpayers who have requested an administrative hearing or a judicial review with respect to their property tax liability may avail themselves of the incentives on real and personal property provided in this chapter. Availing themselves of the benefit under this chapter shall result in the adjudication of the years they contested. No natural or juridical person, or employee or contractor of a business who worked in the preparation or drafting of this chapter, or who lobbied in favor of its approval, may carry out the tasks authorized herein.
Those municipalities that have the personnel or have already contracted or are able to contract firms that specialize in these matters may carry out the tasks provided in this chapter at their respective municipal facilities.
History —July 2, 2010, No. 71, § 7.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5958 - Exclusions

Taxpayers against whom a criminal proceeding has been instituted or is pending for a tax crime, whose noncompliance entails the intent to defraud, or who have been convicted of tax fraud, may not avail themselves of the tax reliefs granted by this chapter with respect to real and personal property.
History —July 2, 2010, No. 71, § 8.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5959 - Obligations of the Executive Director

On or within (60) days after payment of a debt eligible under this chapter, the Executive Director of the CRIM shall have the obligation to issue a no-debt certificate pursuant to the provisions set forth herein, in addition to any payment receipts stamped at the CRIM when the taxpayer makes his/her payment under the provisions of this chapter. He/she shall also have the obligation to eliminate any debts paid in full pursuant to this chapter from all data filing systems.
History —July 2, 2010, No. 71, § 9.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5960 - Authorization

The Executive Director of the CRIM or his/her authorized representatives are hereby authorized to contract any person or entity to assist in the processes necessary to implement the provisions of this chapter; Provided, That the implementation of this chapter shall not result in the dismissal of the CRIM employees.
History —July 2, 2010, No. 71, § 10.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5961 - Administration

Not later than thirty (30) days from the effective date of this act, the CRIM shall issue any administrative order for the prompt implementation of this chapter, strictly subject to the parameters and requirements established herein. The CRIM shall distribute the revenues obtained by virtue of this chapter not later than ninety (90) days from the expiration term thereof.
History —July 2, 2010, No. 71, § 11.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5962 - Distribution of revenues

The proceeds from taxes collected by virtue of the incentives granted under §§ 5951–5961 of this title shall be deposited in a special CRIM account in the Bank. Thirty percent (30%) of the total assessed for the basic tax shall be set aside to be transferred to the General Fund of the Commonwealth of Puerto Rico. The remaining amount shall be sent to the CRIM for distribution among Municipalities, as appropriate.
History —July 2, 2010, No. 71, § 12.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 257 - Incentives Plan for the Payment of Property Tax Debt (§§ 5951 — 5963) › § 5963 - Report

The CRIM shall be responsible for submitting a detailed report to the Legislative Assembly on revenues collected, their distribution, and the effectiveness of the incentives granted under this chapter. Said report shall be submitted within a term not to exceed six (6) months after the expiration date of the incentives provided in this chapter.
History —July 2, 2010, No. 71, § 13.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6001 - Public policy

The public policy of our Government and of this Legislature is to expedite the administrative and operational processes by reducing the unnecessary duplication of structures, regulations, norms and procedures, as well as those laws which hinder the efforts of the public administrations that pursue efficiency. In order to facilitate the municipal financing efforts, statutory provisions are hereby incorporated into a single law. Furthermore, the municipalities of Puerto Rico are hereby authorized to contract loans in the form of bonds and notes, as provided in this chapter. With this chapter, which shall be known as the “Puerto Rico Municipal Financing Act of 1996”, the debenture issue process is facilitated and expedited in a uniform way and updated to conform to the credit process and financing mechanisms, thus attempering this chapter to municipal reform laws. Thus is the interest of the People of Puerto Rico and the municipal administrations bolstered, in order to advance the economic and social development of the community through the needed public works and the efficient handling of municipal finances.
It is hereby declared as the public policy of the Government of Puerto Rico, that the municipalities be authorized to contract loans in advance of the basic property taxes, to contract obligations secured by the product of the income or resources derived from the municipal retail sale and use tax, and to issue general obligation bonds or notes, revenue bonds, special obligation bonds, and refinancing bonds, as provided in this chapter.
History —July 3, 1996, No. 64, § 2; Aug. 12, 1997, No. 75, § 1; July 29, 2007, No. 81, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6002a - Contracting of loans—Authorization

Municipalities are authorized to borrow money through obligations evidenced by bonds, notes or any other credit instruments, pursuant to the provisions of this chapter. Municipalities may incur these obligations with the Government Bank or other public or private banking or financing institutions.
History —July 3, 1996, No. 64, added as § 4 on Aug. 12, 1997, No. 75, § 3.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6004 - Obligations evidenced by notes in advance of bonds

Every municipality is authorized to incur obligations evidenced by notes in advance of bonds. The notes shall be designated as “notes in advance of bonds” and shall contain a statement of the fact that they are in advance of a bond issue, and a general description of the purposes that the notes are intended to finance. The notes may be authorized in the same ordinance as the bonds, or in a separate resolution. In both cases, the original notes shall be authorized by the affirmative vote of at least two thirds (⅔) of the members of the legislature and with the mayor’s approval. The notes may be issued at any time after the ordinance that authorizes the bonds has become effective. These notes, including any renewal thereof, shall mature not later than ten (10) years after the date of the original note. The renewal of the notes may be made through new notes or in any other way, as provided by the ordinance or resolution that authorized the original notes, or by a separate resolution for the renewal of the notes. The renewals shall be carried out under those terms and conditions and at the rate or rates of interest established by the Legislature. The Legislature may delegate authority on the mayor to carry out these renewals. It shall not be necessary to hold public hearings prior to the approval of a resolution authorizing notes in advance of bonds, but if the municipality decides to hold a public hearing, it shall follow the procedure established in § 6006 of this title.
History —July 3, 1996, No. 64, § 5, renumbered as § 6 and amended on Aug. 12, 1997, No. 75, § 5.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6005 - Obligations evidenced by notes

Each municipality is authorized to incur obligations evidenced by notes. The notes, including any renewal note, may mature on a term not greater than eight (8) years from the date of the original note. In cases of notes in advance of taxes and revenues, the notes, including any renewal note thereof, shall mature not later than ninety (90) days after the close of the fiscal year in advance of which taxes or revenues the notes were issued. The notes shall be authorized through a resolution with the affirmative vote of at least two thirds (⅔) of the members of the Legislature and the approval of the mayor. It shall not be necessary to hold a public hearing prior to the approval of the resolution authorizing these notes, but if the municipality decides to hold a public hearing, the procedure established in § 6006 of this title.
History —July 3, 1996, No. 64, § 6, renumbered as § 7 and amended on Aug. 12, 1997, No. 75, § 6.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6007 - Special obligations evidenced by other credit instruments

Municipalities may borrow money through special obligations evidenced by credit instruments other than bonds, notes or notes in advance of bonds. The contracting of such instruments shall be governed by the provisions of this chapter which apply to the issue of notes in cases of obligations for terms not greater than eight (8) years, and those applicable to the special obligation bond issue in the case of obligations for terms greater than eight (8) years. In cases of instruments in advance of taxes and revenues, the instruments, including any renewal thereof, shall mature not later than ninety (90) days after the close of the fiscal year in advance of which taxes or revenues were contracted.
History —July 3, 1996, No. 64, § 8, renumbered as § 9 and amended on Aug. 12, 1997, No. 75, § 8.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6008b - Approval of ordinances and resolutions

Any provision of any law, regulation, ordinance or resolution to the contrary, notwithstanding, when considering the approval of any ordinance or resolution authorizing the municipality to incur an obligation under this chapter or any supplementary ordinance or resolution related to said obligation, it shall only be necessary for the ordinance or resolution to be presented at a session of the Legislature, read in its totality, and voted on, viva voce, by roll call at said session.
History —July 3, 1996, No. 64, added as § 12 on Aug. 12, 1997, No. 75, § 11.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6009 - Notice of approval of ordinance or resolution

(a) Except in case of an emergency, as provided in § 6027 of this title, after the Legislature and the mayor have approved an ordinance or resolution authorizing the municipality to incur an obligation under this chapter, the Secretary of the municipality shall publish a notice of approval of the ordinance or resolution at least once in a newspaper of general circulation in Puerto Rico and shall affix said notice in at least two (2) public places in the municipality. The notice of approval of the ordinance or resolution shall be substantially similar to the form provided below:
Ordinance (Resolution) No. ___, Series ___, entitled “Ordinance (Resolution) to Authorize the issue of $ ______, in (General Obligation) (Special Obligation) (Revenue) (Refinancing) Bonds of 19 __, of the Municipality of ____________, Puerto Rico, (and the issue of $ ______, of Notes in Advance of Bonds) and providing for the payment of principal and interest on said Bonds” has been approved by the Assembly on the ___, of ________, of 19 ___, and approved by the Mayor on the ___, of ________, of 19 __.
This ordinance (resolution) shall become effective immediately after the date of publication of this Notice of Approval.
No action or recourse based on the nullity of said ordinance (resolution) shall be set forth nor the validity of the ordinance (resolution) or any of its provisions, including provisions for the payment of such (bonds or notes or other instruments) nor the validity of (the bonds or notes or other instruments) authorized by said ordinance (resolution) shall be questioned under any circumstance in any Court, except through an action or proceeding initiated in a court with jurisdiction within ten (10) days following the date of publication of this Notice of Approval.
Secretary
Municipality
(b) Except in cases of emergency, as provided in § 6027 of this title, no ordinance or resolution authorizing the municipality to incur an obligation pursuant to this chapter, shall be effective before a period of ten (10) days following the publication of the Notice of Approval.
History —July 3, 1996, No. 64, § 10, renumbered as § 13 and amended on Aug. 12, 1997, No. 75, § 12.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6010 - Validity of ordinance or resolution

(a) No action or recourse based on the nullity of an ordinance or resolution that authorizes an obligation approved by the Government Bank; nor the validity of an ordinance or resolution or of any of its provisions, including the provisions for the payment of bonds, notes or instruments; nor the validity of the bonds, notes or instruments authorized by the ordinance or resolution, shall be questioned under any circumstances in any court, except in an action or proceeding initiated in a court with jurisdiction within ten (10) days following the date of this notice of approval required by § 6009 of this title.
(b) Unless an action or proceeding has been filed before the term of ten (10) days established in this section has expired, it shall be undisputedly presumed that the ordinance or resolution to authorize an obligation, approved by the Government Bank has been duly and regularly adopted and approved by the municipality in compliance with the provisions of this chapter and of any other applicable law. Neither the validity of said ordinance or resolution or any of its provisions, including the provisions for the payment of bonds, notes or instruments; nor the validity of the bonds, notes or instruments authorized by the ordinance or resolution; nor the validity of the bonds, notes or instruments authorized by the ordinance or resolution, shall be questioned by the municipality, any taxpayer of the municipality or any interested party, regardless of the provisions in conflict with any provision of this chapter or of any other act or regulation.
(c) No ordinance shall be declared null for the mere fact that it has been adopted as an ordinance when it should have been adopted as a resolution and no resolution shall be declared null for the mere fact that it has been adopted as a resolution when it should have been adopted as an ordinance.
History —July 3, 1996, No. 64, § 11, renumbered as § 14 and amended on Aug. 12, 1997, No. 75, § 13.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6011 - Terms of bonds, notes and any other instruments

(a) The bonds and notes authorized under the provisions of this chapter shall be of such nature, whether they are registered, with coupons, or electronic entry registry; shall be dated; shall accrue interest at such rate or rates or shall provide the formula or formulas to determine such rate or rates of interest; shall be payable on such date or dates; shall be of such denomination or denominations; may be subject to prior redemption on said date or dates and prices; their principal and interest shall be payable in such place or places, that may be located in or outside the Commonwealth of Puerto Rico; may be countersigned by that countersigning agent that may be located in or outside of the Commonwealth of Puerto Rico; and shall be payable in legal tender of the United States of America, which upon said date is used for the payment of public and private debts, as provided in the ordinance or resolution that authorizes the bonds or notes or in a subsequent resolution of the Legislature. The Legislature is empowered to delegate, through ordinance or resolution, on the mayor or on the Government Bank, the authority to establish the terms of the bonds or notes including, without being limited to, the determination of the rate or rates of interest or the formula or formulas to determine the rate or rates of interest and the dates of maturity of the principal and interest on bonds or notes to be issued.
(b) The other credit instruments authorized pursuant to the provisions of this chapter, shall be in the nature and under the terms and conditions established by the Legislature in the ordinance or resolution that authorizes said instruments or in a subsequent resolution; or in the nature and under the terms and conditions established by the person(s) on whom the Legislature delegates the contracting of said instrument through an ordinance or resolution to such effects which shall contain the instructions for said delegation. In the case of delegation, the actions of the agent shall be ratified by the Legislature with the approval of the mayor.
History —July 3, 1996, No. 64, § 12, renumbered as § 15 and amended on Aug. 12, 1997, No. 75, § 14.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6012 - Signature of the bonds, notes or any other instruments

The bonds, notes or any other instruments authorized pursuant to the provisions of this chapter shall be signed by, or shall bear the facsimile of the signature of the person who holds the office of mayor at the time of the signing thereof; the corporate seal of the municipality or a facsimile thereof shall be printed thereon; and shall be signed by, or shall bear a facsimile of the signature of the person who holds the office of Secretary of the municipality at the time of the signing thereof or of any other official designated by the Legislature to attest to and authenticate the signature of the mayor and the printing of the corporate seal on bonds, notes or instruments. At least one of the signatures shall be handwritten by the signer. In the case of coupon bonds, every coupon shall be signed by or shall bear the signature in facsimile of the mayor. In the event that any official whose signature or facsimile thereof appears in any of the bonds, notes or any other instruments is not in office prior to the delivery of said bonds, notes or instruments, said signature or facsimile shall nevertheless be valid and sufficient for all legal purposes as if said official were in office until said delivery.
History —July 3, 1996, No. 64, § 13, renumbered as § 16 and amended on Aug. 12, 1997, No. 75, § 15.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6013 - Replacement of mutilated, destroyed or lost bonds and notes

Replacement of mutilated, destroyed or lost bonds or notes shall be carried out pursuant to the procedure established by the Government Bank through regulations.
History —July 3, 1996, No. 64, § 14, renumbered as § 17 and amended on Aug. 12, 1997, No. 75, § 16.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6014 - Negotiability of bonds, notes or any other instruments

Except otherwise provided through an ordinance or resolution, the bonds, notes and other instruments authorized pursuant to this chapter, shall be considered negotiable instruments pursuant to the general negotiable instruments act in effect at the time the ordinance or resolution is adopted.
History —July 3, 1996, No. 64, § 15, renumbered as § 18 and amended on Aug. 12, 1997, No. 75, § 17.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6017 - Self-liquidating revenue generating projects

The Legislature of every municipality that issues obligations evidenced by revenue bonds by virtue of the provisions of this chapter to pay for the cost of revenue generating projects, shall fix and collect reasonable rates, fees, charges or rental payments for the use of the services or facilities provided by said revenue generating projects, and shall review the rates, fees, charges or rental payments from time to time so that said revenue generating projects shall remain self-liquidating. The rates, fees, charges and rental payments shall be in amounts sufficient to produce resources to at least:
(a) Pay all operating and maintenance expenses of said revenue generating projects and provide the needed reserves for such a purpose, and
(b) pay the principal and the premiums, if any, and the interest on the revenue bonds for the payment of which the income from the revenue generating project has been committed, or otherwise encumbered, and to provide the corresponding reserves.
History —July 3, 1996, No. 64, § 18, renumbered as § 21 and amended on Aug. 12, 1997, No. 75, § 20.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6018 - Disposal of income of revenue generating projects

(a) Income generated by a revenue generating project financed by obligations evidenced by revenue bonds shall be used in the order of priority and for the purposes indicated below:
(1) To pay all operating and maintenance expenses of the revenue generating project;
(2) to provide reserves for the operation and maintenance and the repair and replacement of the revenue generating project;
(3) to pay the principal, and the premium, if any, and the interest on the revenue bonds for the payment of which the income of the revenue generating project has been committed or otherwise encumbered, and to provide for the corresponding reserves;
(4) to pay the principal, the premium, if any, and the interest on any other obligation which is not backed by an encumbrance or other lien on the income of the revenue generating project, but was issued to provide resources to pay the cost of said project, and
(5) any surplus from the income of the revenue generating project, after complying with the preceding items, may be transferred to the General Fund of the municipality and used for any other legal purpose of the municipality.
(b) In case that the income generated by a revenue generating project financed by obligations evidenced by revenue bonds are not sufficient, or for any other reason were not assigned for the payment of the principal, the premium, if any, and the interest on said revenue bonds, the Center shall withhold from the monthly income remittance to the municipalities the amounts needed to make said payments.
History —July 3, 1996, No. 64, § 19, renumbered as § 22 and amended on Aug. 12, 1997, No. 75, § 21.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6019 - Validity of the pledging of the income of revenue generating projects

The pledging or assignment of the income of a revenue generating project granted under the provisions of this chapter shall be valid and effective without the need for any subsequent action. The operating and/or lease contracts executed by the mayor or other duly authorized official with operators or lessees of revenue generating projects shall be valid even if the executing officials have ceased their function, provided the execution has met the requirements of the applicable laws.
History —July 3, 1996, No. 64, § 20, renumbered as § 23 and amended on Aug. 12, 1997, No. 75, § 22.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6020 - General obligations of the municipalities

(a) The obligations evidenced by municipal general obligation bonds or notes of a municipality constitute the general obligations of the municipality for the prompt payment of which the good faith, credit and power of the municipality to impose unlimited taxes are committed. The holders of municipal general obligation bonds or notes shall have the right to compel the municipality to exercise its power to levy taxes for the payment of the principal, interest and premiums of early redemption, if any, of said bonds or notes.
(b) The obligations evidenced by special obligation bonds, notes or instruments, revenue bonds and notes or instruments in advance of taxes and revenues do not constitute general obligations of the municipality and, therefore, the good faith, credit and power of said municipality to levy unlimited taxes are not committed for the payment of the principal and interest on said obligations. The holders of special obligation bonds, notes or instruments, revenue bonds or notes or instruments in advance of taxes or revenues shall not have the right to compel the municipality to exercise its power to levy taxes for the payment of the principal, interest and premiums of early redemption, if any, of said bonds, notes or instruments.
(c) Every bond, note or instrument authorized under the provisions of this chapter, with the exception of municipal general obligation bonds or notes and the notes in advance of municipal general obligation bonds, shall include a statement to the effect that they do not constitute general obligations of the municipality and that their principal, interest and early redemption premiums, if any, shall be payable only from the revenues, income, taxes or any other resources that were specifically encumbered or pledged for the payment thereof.
History —July 3, 1996, No. 64, § 21, renumbered as § 24 and amended on Aug. 12, 1997, No. 75, § 23.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6021 - Sale and negotiation of bonds, notes or any other instruments

(a) The bonds or notes issued under the provisions of this chapter may be sold as established hereinbelow:
(1) In case the Legislature decides to sell bonds or notes in a public sale, the Legislature shall delegate on the Bidding Board the holding of the public sale. The Legislature shall fix the sales price or delegate on the Bidding Board the fixing of the sales price. Each bidder who appears at a public sale shall deliver, together with his/her bid, a certified check drawn to the order of the municipality, for an amount of not less than two percent (2%) of the principal of the bonds or notes he/she intends to buy, in order to compensate the municipality for any loss that could be caused by noncompliance with the terms and conditions of this bid. This deposit shall not be required when the bidder is the Government Bank, the Commonwealth of Puerto Rico, the Government of the United States of America, or any of the agencies or instrumentalities of the latter two. The Bidding Board shall adjudicate the bonds or notes to the highest bidder who meets the terms and conditions of the sale. The Bidding Board may, however, reject all bids submitted for its consideration. The actions of the Bidding Board, including the fixing of the sales price in those cases in which the adjudication of the bonds or notes is delegated on it, shall be ratified through a resolution adopted by the Legislature and approved by the mayor.
(2) In case the Legislature decides to sell the bonds or notes in a private sale, the Legislature may authorize the sale directly or delegate on the Bidding Board or on the mayor the adjudication of the private sale. Those actions of the mayor or of the Bidding Board shall be ratified through a resolution adopted by the Legislature. Each intended buyer in a private sale shall deliver, together with the purchase offer, a certified check drawn to the order of the municipality, for an amount of not less than two percent (2%) of the principal of the bonds, notes or instruments he/she intends to buy, in order to compensate the municipality for any loss that could be caused by noncompliance with the terms and conditions of the offer. This deposit shall not be required when the bonds or notes are to be sold in a private sale to the Government Bank, the Commonwealth of Puerto Rico, the Government of the United States of America, or any of the agencies or instrumentalities of the latter two.
(b) In the case of special obligations and notes or instruments in advance of taxes and revenues, the Legislature may authorize the private contracting or negotiation thereof and may delegate on the mayor its contracting or negotiations. The actions of the mayor shall be ratified through a resolution of the Legislature.
History —July 3, 1996, No. 64, § 22, renumbered as § 25 and amended on Aug. 12, 1997, No. 75, § 24.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6023 - Provisional receipts

The Legislature may authorize the delivery of provisional receipts to the purchasers of bonds or notes until the definite bonds or notes are prepared through an ordinance or resolution to that effect.
History —July 3, 1996, No. 64, § 24, renumbered as § 27 and amended on Aug. 12, 1997, No. 75, § 26.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6025 - Tax exemption

All municipal general obligation bonds or notes and all notes in advance of municipal general obligation bonds and the interest thereon shall be exempted from the payment of any taxes levied by the Commonwealth of Puerto Rico and its municipalities.
History —July 3, 1996, No. 64, § 26, renumbered as § 28 and amended on Aug. 12, 1997, No. 75, § 28.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6026 - Loans from special funds

(a) The municipalities are authorized to borrow money from the FEPEG (Spanish acronym), through obligations evidenced by notes or other instruments. These notes or instruments shall be deemed as special obligation notes or instruments under the provisions of this chapter. The procedure for their authorization shall be governed by §§ 6005, 6006 and 6009 of this title in accordance with the type of obligation. The limitation contained in § 6008 of this title notwithstanding, the notes or instruments which evidence loans made with FEPEG may mature up to a maximum of twenty (20) years after their date of issue. The municipalities shall pay the principal and the interest on these notes or instruments from funds budgeted for regular expenses that are not expressly encumbered for other purposes and/or from the product of the issue of bonds, notes or other instruments pursuant to the provisions of this chapter for refinancing said notes or instruments.
(b) The Government Bank shall establish, through regulations, everything regarding the application, granting, disbursement, payment and supervision of the loans with FEPEG, including, but without being limited to, the procedure for application, the criteria for evaluation and approval of applications and the terms and conditions of the loans to be granted.
History —July 3, 1996, No. 64, § 27, renumbered as § 29 and amended on Aug. 12, 1997, No. 75, § 29.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6026a - Obligations secured by the municipal retail sales and use tax

Municipalities are hereby authorized to take money on loan, to be secured and taking as base the product of the income or resources derived from the municipal retail sales and use tax, as defined in this chapter. Payment of these loans by the municipalities shall be chargeable to funds received on account of the municipal retail sales and use tax. Loans authorized under this section shall not be subject to the limitations on borrowing capacity contained as part of this chapter.
History —July 3, 1996, No. 64, added as § 29a on July 29, 2007, No. 81, § 3; May 28, 2009, No. 19, § 1.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6027 - Financing for emergencies

(a) When the Governor decrees a state of emergency in one or more municipalities and for the duration of said state of emergency, the Legislature of the municipalities declared to be in a state of emergency shall not be under the obligation to comply with the requirement of a public hearing provided in § 6006 of this title nor with the requirement to publish a notice of approval provided in § 6009 of this title, in order to incur obligations evidenced by bonds, notes or any other instruments whose purpose is to obtain funds to attend to the needs resulting from said state of emergency. If the Legislature decides to waiver compliance with one or both of these requirements, the ordinance or resolution shall refer to the state of emergency and indicate that those requirements are not complied with for such a reason.
(b) When the Governor decrees a state of emergency and for the duration of said state of emergency, the Legislature of the municipalities declared to be in a state of emergency may, through an ordinance approved after the holding of a public hearing and with the approval of the Government Bank, assign all or part of the product from special obligations, or the general obligation bonds or notes already incurred, for purposes not specified in the ordinances or resolutions that authorized said obligations, but that are needed to attend to the needs resulting from said state of emergency in the municipality.
(c) When the Governor decrees a state of emergency and for the duration of said state of emergency, the Government Bank shall have the authority to approve special obligations that do not comply with the restriction established in § 6015 of this title, provided the product of said obligations is used only to attend to the needs resulting from the state of emergency and the municipality has no other alternative available to take money on loan to attend to such needs.
History —July 3, 1996, No. 64, § 28, renumbered as § 30 and amended on Aug. 12, 1997, No. 75, § 30.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6028 - Fiscal agent

(a) Notwithstanding any other provision of this chapter, regulations, ordinance or resolution to the contrary, the Government Bank shall be the fiscal agent of the municipalities with the responsibility for ensuring faithful compliance with this chapter and the sound administration of the loan activity of the municipality. No municipality may incur an obligation evidenced by bonds, notes or any other instruments under the provisions of this chapter without the previous approval of the Government Bank.
(b) The Government Bank shall establish, pursuant to the provisions of this chapter, through regulations, all the procedures, rules, norms and measures needed for its implementation and operation. These regulations shall provide, to the extent possible, a uniform, feasible and speedy procedure for the authorization, handling, disbursement and supervision of the municipal obligations authorized by this chapter. Until the promulgation of these regulations, the Government Bank shall take the provisional measures it deems necessary for the implementation and operation of this chapter.
History —July 3, 1996, No. 64, § 29, renumbered as § 31 and amended on Aug. 12, 1997, No. 75, § 31.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 261 - Municipal Financing Act of 1996 (§§ 6001 — 6029) › § 6029 - Covenant of the Commonwealth of Puerto Rico

The Commonwealth of Puerto Rico hereby commits itself and agrees with any person or persons who subscribe or acquire bonds, notes or instruments authorized under the provisions of this chapter, not to limit or alter the rights, obligations and faculties which are hereby conferred on the municipalities, the Center and the Government Bank, in such a way as to constitute a violation of the rights of the holder of the bonds, notes or instruments, until said bonds, notes or instruments issued on any date, together with the interest thereon, have been totally redeemed.
History —July 3, 1996, No. 64, § 30, renumbered as § 32 and amended on Aug. 12, 1997, No. 75, § 32.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter I - General Provisions (§§ 6601 — 6604) › § 6602 - Power of the municipalities to authorize the establishment of tourism improvement districts; determination of the Company

The municipalities are hereby authorized to designate tourism improvement districts through an ordinance, which shall be delimited at the request of the associations constituted according to this chapter and to the ordinances approved by the municipality (or municipalities in those cases in which the real property of said districts is located in more than one municipality) within whose territorial boundaries the tourism improvement district is located. Said districts may include adjacent or non-adjacent properties, but shall only include real property belonging to the members of the association, and shall constitute areas with common characteristics, interests and problems in which, through the mechanisms provided in this chapter, plans for solving problems and improvement proposals may be adopted to foster and develop those works, services and projects deemed necessary or convenient for the development of the proposed tourism improvement district.
The petition made to a municipality to establish a tourism improvement district shall not be considered unless the Company has determined that the proposed district shall substantially further and strengthen the tourist industry in the Commonwealth of Puerto Rico. Said determination must be a part of the petition made to a municipality to establish a district under this chapter.
The municipal governments may refuse to designate tourism improvement districts in their municipalities even though they have been endorsed by the Company when they decide that such a designation is out of order, after having evaluated the petition for the establishment of a tourism improvement district pursuant to the provisions of §§ 6652 and 6653 of this title.
History —Aug. 8, 1998, No. 207, § 1.004, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter I - General Provisions (§§ 6601 — 6604) › § 6603 - Purpose of the tourism improvement districts

The purpose of the tourism improvement districts shall be to create a mechanism to finance, acquire, dispose of, plan, design, develop, build, own, operate, maintain, manage, market, improve and promote improvement projects, and any other related projects or services, as described in greater detail in, and subject to the provisions of this chapter and the municipal ordinance authorizing the creation of the tourism improvement district or the imposts charged on benefits or profits.
History —Aug. 8, 1998, No. 207, § 1.005, eff. 60 days after Aug. 8, 1998.
2023 Laws of Puerto Rico › TITLE TWENTY-ONE - Municipalities (§§ 1-4 — 6756) › Subtitle 7 - Municipal Property Tax (§§ 5001 — 6756) › PART III (§§ 5901 — 6756) › Chapter 263 - Tourism Improvement of 1998 (§§ 6601 — 6724) › Subchapter I - General Provisions (§§ 6601 — 6604) › § 6604 - Imposts charged on benefits or profits; nature and uses

The imposts charged on benefits or profits constitute a burden and a tacit lawful lien on real property levied in proportion to the benefits or profits received or to be received from an improvement project or projects. The amount of the imposts charged on benefits or profits shall not exceed the benefits or profits received by the real property as determined by the association.
The proceeds of the collections on account of the imposts on charged for benefits or profits or the bonds secured thereby shall be used solely to finance the improvement project or projects for which they were imposed, or to amortize the loan contracted to develop said projects. However, the trust contract or the resolution of the association providing for the bond issue may provide for the proceeds to be invested pending their application, under the terms and conditions provided in the resolution of the association approving the bond issue or the corresponding trust contract.
A property that is exempted from the payment of property taxes pursuant to an administrative determination made by a public entity, a municipality or the Governor of Puerto Rico, under any government incentives program, shall not be exempt from the payment of the imposts on charges for benefits or profits. Property belonging to the Government of the United States of America, to the Commonwealth of Puerto Rico or any of its instrumentalities, corporations or departments, to any municipality, or to the hotel development corporation, located within a tourism improvements district, shall be exempt from the payment of the imposts on charges for benefits or profits.
History —Aug. 8, 1998, No. 207, § 1.006, eff. 60 days after Aug. 8, 1998.