(S. B. 452) (No. 139-2009) (Approved November 16, 2009) AN ACT To amend paragraph (42) of Section 4001; paragraph (1) of Subsection (b) of Section 4002; subsection (g) of Section 6118; to add Section 6133; to amend subsection (a) of Section 6145; to repeal current Section 6147; and to renumber Sections 6148 and 6149 as Sections 6147 and 6148, respectively, of Act No. 120-1994, as amended, known as the Puerto Rico Internal Revenue Code of 1994, to clarify the scope of the authority of the Secretary of the Treasury to delegate law enforcement officer functions to the agents, officers, officials or employees designated by him/her to enforce the provisions of the Code. STATEMENT OF MOTIVES The Department of the Treasury of the Commonwealth of Puerto Rico has the responsibility of ensuring and guaranteeing that the demands and duties set forth in Act No. 120-1994, as amended, known as the Puerto Rico Internal Revenue Code of 1994, are fully complied with. For such reason, in an effort to deter tax evasion and fraud, such Department conducts thorough investigations and fiscal interventions. Pursuant to the powers vested upon the Secretary of the Treasury by law, he/she has the authority to delegate onto the agents, officers, officials, or employees the responsibilities and functions deemed necessary to enforce the provisions of the Internal Revenue Code. On the other hand, Act No. 117-2006, as amended, known as the Taxpayers Justice Act of 2006, amended such Code in order to incorporate a Sales and Use Tax (IVU, Spanish acronym) which became effective on November 15, 2006, among other things. As a direct result of the
implementation of Act No. 117-2006, supra, the Alcoholic Beverages Licensing Bureau, as well as the General Office of Excise Tax became the Consumption Tax Bureau. Therefore, such Bureau is responsible at present for overseeing and ensuring compliance with the provisions of law contained in Subtitles B, BB, D, and F of the Internal Revenue Code. However, after the enactment of Act No. 117-2006, supra, the Internal Revenue Code has not been amended to adjust and reassert the authority of the Secretary of the Treasury to delegate his/her power to address tax-related issues. BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF PUERTO RICO: Section 1.- Paragraph (42) of Section 4001 of Act No. 120-1994, as amended, is hereby amended to read as follows: Section 4001.- Definitions.- For the purposes of this Subtitle the following terms shall have the general meaning expressed below and the same may be amended through regulations as the Secretary of the Treasury may determine from time to time in view of the changes in the liquor industry: (1) (42) Bureau.- Means the Consumption Tax Bureau of the Department of the Treasury. Section 2.- Paragraph (1) of subsection (b) of Section 4002 of Act No. 120-1994, as amended, is hereby amended to read as follows: Section 4002.- Tax Provision.- An internal revenue tax shall be levied, collected, and paid only once on the following products that are in a warehouse or that have been or may be subsequently distilled, rectified, produced, manufactured, imported or introduced to Puerto Rico at the following rate:
(a) (b) Wines.- (1) On those substandard quality wines whose alcohol content through fermentation has been complemented through exclusive fortification with distilled spirits obtained through the fermentation and distilling of products derived from sugarcane, (excluding champagne and sparkling and carbonated wines, or imitation thereof) or any substitutes thereof, whose alcohol content does not exceed twenty-four percent (24%) per volume, a tax of one dollar and sixty-five cents ($1.65) per gallon measure and a proportional tax at an equal rate on every fraction of gallon measure. In order for any wine manufactured outside of the United States or Puerto Rico to qualify as a substandard concentrated must or tropical fruit wine, for the purpose of this Act, it shall be an essential requirement that the manufacturer or importer thereof files with the Consumption Tax Bureau of the Department of the Treasury a wine formula certification issued by a government agency or entity of similar import to the Bureau of Alcohol, Tobacco, and Firearms (BATF) or the Consumption Tax Bureau of the Department of the Treasury. Furthermore, the manufacturer or importer shall submit to the Consumption Tax Bureau of the Department of the Treasury a BATF certification of approval of the product label. The Secretary of the Treasury, or the official he/she designates, shall be empowered to direct the chemical screenings and analyses, or any other type of tests, to verify the accuracy of any statement made of any formula registered with the Consumption Tax Bureau. Section 3.- Subsection (g) of Section 6118 of Act No. 120-1994, as amended, is hereby amended to read as follows:
Section 6118.- Violations.- (a) (g) Possession of Unregistered Stills.- Any person who has in his/her possession or custody or at his/her disposal as owner, lessee, depositary, guardian, or otherwise, an installed or uninstalled still that is not registered with the Consumption Tax Bureau; or who fails to register a still that is in his/her possession as a deposit or otherwise under his/her custody or at his/her disposal; or who prevents or hinders the Secretary s free inspection thereof, shall be guilty of a misdemeanor for the first infraction, and guilty of a felony for the second and subsequent infractions. The Secretary shall confiscate every unregistered still, and seize and sell it for the benefit of the Commonwealth of Puerto Rico, or if he/she deems it convenient, he/she shall destroy it. Section 4.- A new Section 6133 is hereby added to Act No. 120-1994, as amended, to read as follows: Section 6133.- Powers of Officials Entrusted with the Enforcement of the Subtitles of this Code. (a) General Rule.- The Secretary or any of its agents, officers, officials, or employees he/she designates to enforce the provisions of Subtitles A, B, BB, D, and F of this Code shall have all the authorities granted by the laws of Puerto Rico to Law Enforcement Officer, including, but without being construed as a limitation, the authority of the Puerto Rico Police to bear, carry, possess, transport, and use weapons under the provisions of Act No. 404-2000, as amended, known as the Puerto Rico Weapons Act, as well as the authority to make arrests, as provided by Rule No. 11 of the Rules of Criminal Procedure of 1963 for the General Court of Justice, as amended.
(b) Officials or Employees to be Supported.- The Secretary shall designate the officers, officials, and employees who shall be engaged in the administration of the Subtitles of this Code which, in his/her judgment, shall be supported. Section 5.- Subsection (a) of Section 6145 of Act No. 120-1994, as amended, is hereby amended to read as follows: (a) Subtitle D shall be administered and enforced by the Secretary.- The Secretary shall be charged with the inspection of any distillery, brewery, rectification plant, factory, commercial establishment, and bonded warehouse that is subject to payment of tax and license fees, as provided in Subtitle D, as well as to assess, collect, liquidate, and report such taxes and fees, and the capture, arrest, and prosecution of any person that illegally distills, manufacture, import, introduces, ships, exports, sells, holds, or transports products subject to the provisions of Subtitle D. The Secretary shall delegate on the Consumption Tax Bureau of the Department of the Treasury the administration of Subtitle D. The Secretary is hereby authorized to appoint agents, officials, officers and employees he/she deems necessary to administer the same. Section 6.- Current Section 6147 of Act No. 120-1994, as amended, is hereby repealed. Section 7.- Current Section 6148 of Act No. 120-1994, as amended, is hereby renumbered as Section 6147. Section 8.- Current Section 6149 of Act No. 120-1994, as amended, is hereby renumbered as Section 6148. Section 9.- Effectiveness.- This Act shall take effect immediately after its approval.
CERTIFICATION I hereby certify to the Secretary of State that the following Act No. 139-2009 (S. B. 452) of the 2 nd Session of the 16 th Legislature of Puerto Rico: AN ACT to amend paragraph (42) of Section 4001; paragraph (1) of Subsection (b) of Section 4002; subsection (g) of Section 6118; to add Section 6133; to amend subsection (a) of Section 6145; to repeal current Section 6147; and to renumber Sections 6148 and 6149 as Sections 6147 and 6148, respectively, of Act No. 120-1994, as amended, known as the Puerto Rico Internal Revenue Code of 1994, to clarify the scope of the authority of the Secretary of the Treasury to delegate law enforcement officer functions to the agents, officers, officials or employees designated by him/her to enforce the provisions of the Code. has been translated from Spanish to English and that the English version is correct. In San Juan, Puerto Rico, on the 30 th day of April, 2012. María del Mar Ortiz Rivera