Ley 173 del 2001
Resumen
Esta ley enmienda el Código de Rentas Internas de Puerto Rico de 1994 para añadir la Sección 2045-A, la cual establece una exención temporal del 50% en los arbitrios sobre el combustible de aviación utilizado en vuelos entre Puerto Rico y destinos fuera de sus límites, excluyendo vuelos recreativos o deportivos. La medida busca estimular la economía, particularmente el sector turístico y las operaciones de las aerolíneas, en respuesta a los efectos de los ataques terroristas de 2001 en Estados Unidos.
Contenido
(No. 173)
(Approved December 7, 2001)
AN ACT
To add Section 2045-A to Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to reduce excise taxes on aviation fuel for a provisional term.
STATEMENT OF MOTIVES
Several laws that reduce tax rates on some taxation events have been approved in the course of this year, such as on the sale of capital assets located in Puerto Rico that increase tax incentives to exempted businesses or that expedite the purchase of manufacturing plants. Recently, various bills have been approved by the House and the Senate to grant higher incentives to a certain type of high technology industries to reduce the tax rate applicable to this type of industry to less than 2%.
The current Administration has also announced that it intends to grant tax credits to commercial establishments that acquire products manufactured in Puerto Rico for their export. The Governor has also proposed a series of fiscal measures to promote the development and rehabilitation of the urban centers in Puerto Rico.
The measures approved and programs proposed by this Administration, as well as those adopted in the past, recognize that there is a direct relationship between employment, capital investment and economic development, on the one hand, and the tax or fiscal policy of the country on
the other hand. While it is true that the capital investments may be stimulated through tax incentives, we should also take into consideration that the Government has the obligation to foster, in the long term, individual savings, and in the short term, consumption as a means to avoid economic deceleration.
Therefore, the measures proposed by this Administration shall seek to stimulate the economy in the short term. There are two options that could have immediate effect. One would be to increase expenses and investments in the public sector. Another one would be to reduce taxes for individuals to foster consumption and thus stimulate our economy. Both options could also be combined. The measures approved and those proposed by this Administration are geared to stimulating the economy in the long term, while the external factors that are affecting our economy have had an immediate effect.
In the times we live, the Government most probably would need to reduce its income projections as a result of a decline in airline operations, hotel reservations, fuel consumption and the reduction in the tourism industry and employment loss in this sector in general. To counteract these reductions, the only activity that favors Government collections is the reduction in the price of crude oil barrels, since by lowering its price the applicable excise tax increases. Contrary to other events such as hurricanes, which entail the transfer of federal funds and the payment of claims by insurance companies, the terrorist attacks in New York and Washington do not entail transfers to Puerto Rico, except for the additional security expenses incurred by the federal government.
In view of this situation, the Government must stimulate, in the short term, local consumption in the most affected sectors of the economy. The
Internal Revenue Code of 1994 sets forth an excise tax on each gallon of aviation fuel or fraction thereof of up to three (3) cents.
The purpose of the present legislation is to provide extraordinary measures of a temporary nature that allow a reduction in the operating expenses of airlines as well as of the tourism industry during their low season. To this effect, a reduction in excise taxes on aviation fuel is hereby granted.
This legislation intends to reduce the impact on the local economy of the terrorist attacks that took place in the United States, especially on the tourism industry, and thus keep all direct and indirect jobs related to the same.
BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO:
Section 1.- To add Section 2045-A to Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," to read as follows: "Section 2045-A.- Exemption on Aviation Fuel Any aviation fuel sold after October 14 and before January 16, 2002, shall be exempted from the payment of excise taxes of fifty (50) percent fixed by Section 2010 of this Subtitle, for its use in flights between Puerto Rico and other destinations beyond its boundaries. For purposes of this Section, the term "flights" does not include recreational or sports flights."
Section 2.- This Act shall take effect immediately after its approval and shall remain in effect from October 14, 2001, to January 16, 2002.
CERTIFICATION
I hereby certify to the Secretary of State that the following Act No. 173 (S.B. 911) of the $2^{ ext {nd }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to add Section 2045-A to Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to reduce excise taxes on aviation fuel for a provisional term, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $24^{ ext {th }}$ of January of 2005.
Marialma Alfau Alemán Acting Director