(No. 123) (Approved September 19, 1997) AN ACT

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1 (H.B. 256) (No. 123) (Approved September 19, 1997) AN ACT To amend Section 12 of Act No. 113 of July 10, 1974, as amended, known as the Municipal License Tax Act, to provide that any natural or juridical person, subject to the provisions of the Municipal License Tax Act, be bound to present evidence of payment of the corresponding municipal license tax prior to renewing a license or association membership issued by a quasi-public or private regulatory agency authorized by Law or by the Government of the Commonwealth of Puerto Rico for such a purpose; the obligation of the Finance Director to issue a certification in case the taxpayer has been granted an extension for payment of the license tax, a payment plan or any other provided by law, which constitutes evidence of the agreement; and to empower all quasi-public or private regulatory agencies authorized by Law or by the Government of the Commonwealth of Puerto Rico to request any natural or juridical person subject to the provisions of Act No. 113 of July 10, 1974, as amended, the presentation of evidence of payment of the municipal license tax or the corresponding certification, prior to renewing a license or association membership. STATEMENT OF MOTIVES Act No. 113 of July 10, 1974, as amended, known as the Municipal License Tax Act empowers the Municipal Assemblies of all municipalities of the Commonwealth of Puerto Rico to levy and collect the license taxes listed in the aforementioned Act. The municipal license taxes represent the

2 2 second most important revenue source proper to the municipalities of Puerto Rico, and together with the income from property taxes, provide the municipalities with the foundation to draw it its proposed expense budget. The industrial and business sectors are the recipients of a substantial portion of the services rendered by the municipalities. However, there may be cases that some of these businesses fail to pay their municipal license taxes to the detriment of an important source of income which the municipalities need to fulfill their responsibilities, improve their services, achieve their growth, and for the general welfare of their citizens. The purpose of this measure is to ensure that the municipalities are not deprived of the funds proceeding from a source to which they are legitimately entitled in order to meet fulfill their obligations. BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO: Section 1.- A second and third paragraph is hereby added to Section 12 of Act No. 113 of July 10, 1974, as amended, to read as follows: Section 12.- Certificate and payment of license tax Once the first installment of the license tax is paid. Every natural or juridical person subject to the provisions of this Act shall be bound to present evidence of payment of the corresponding municipal license tax prior to renewing a license or association membership issued by a quasi-public or private regulatory agency authorized by Law or by the Government of the Commonwealth of Puerto Rico. When the Finance Director, or his/her authorized representative, decides to grant an extension for the payment of the license tax, or a payment plan is agreed to, or should the taxpayer avail him/herself of any benefit granted by law, the former shall issue a certificate containing the terms of the agreement or agreements reached. Said certificate shall

3 3 constitute temporary evidence which shall be sufficient to allow the taxpayer to receive the license or association membership being applied for. Section 2.- It shall be mandatory for every quasi-public or private regulatory agency authorized by Law or by the Government of the Commonwealth of Puerto Rico to require every natural or juridical person subject to the provisions of Act No. 113 of July 10, 1974, as amended, to present evidence of payment of the corresponding municipal license tax prior to renewing a license or association membership. In those cases in which the taxpayer has availed him/herself of an extension for the payment of the license tax, a payment plan is agreed to with the municipality, and others provided by law, the certificate issued by the Finance Director of the corresponding municipality or his/her authorized representative which contains the agreement or agreements reached, shall constitute sufficient evidence. Section 3.- This Act shall take effect immediately after its approval.

4 4 January 15, 1999 José A. Figueroa-Lugo, Director of the Office of Legislative Services of the Legislature of Puerto Rico, hereby certifies to the Secretary of State that he has duly compared the English and Spanish texts of Act No. 123 (H.B. 256) of the 3rd Session of the 13th Legislature of Puerto Rico, entitled: AN ACT to amend Section 12 of Act No. 113 of July 10, 1974, as amended, known as the Municipal License Tax Act, to provide that any natural or juridical person, subject to the provisions of the Municipal License Tax Act, be bound to present evidence of payment of the corresponding municipal license tax prior to renewing a license or association membership issued by a quasi-public or private regulatory agency authorized by Law or by the Government of the Commonwealth of Puerto Rico for such a purpose; the obligation of the Finance Director to issue a certification in case the taxpayer has been granted an extension for payment of the license tax, a payment plan or any other provided by law, which constitutes evidence of the agreement; and to empower all quasi-public or private regulatory agencies authorized by Law or by the Government of the Commonwealth of Puerto Rico to request any natural or juridical person subject to the provisions of Act No. 113 of July 10, 1974, as amended, the presentation of evidence of payment of the municipal license tax or the corresponding certification, prior to renewing a license or association membership, and finds the same are complete, true and correct versions of each other. José A. Figueroa-Lugo

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(No. 73) (Approved August 12, 1997) AN ACT

(H.B. 242) (No. 73) (Approved August 12, 1997) AN ACT To amend subsection (b) and add a new subsection (c) to Section 5; eliminate Section 8; renumber Section 9; amend subsections (a) and (b) of Section