Esta ley enmienda la Sección 4023 del Código de Rentas Internas de Puerto Rico de 1994 para aclarar la aplicación escalonada de los impuestos especiales sobre la cerveza, el extracto de malta y productos análogos, asegurando que el aumento impositivo introducido por la Ley Núm. 69 de 30 de mayo de 2002 se aplique de manera uniforme tanto a los productores locales con producción limitada como a los importadores de productos de pequeñas cervecerías extranjeras.
(Approved May 6, 2004)
To amend subsection "a" and add subsection "c" to Section 4023 of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to clarify the scope and legislative intent of its provisions.
During 2002, several measures were approved with the main purpose of covering additional funds into the treasury. Among them, Act No. 69 of May 30, 2002, which amended the "Puerto Rico Internal Revenue Code of 1994, as amended, was included to increase the taxes imposed on distilled spirits, wines, and beers.
However, said Act guaranteed that beer industries of less production may continue their operations without any alteration, not receiving their tax raise burden until their annual production capacity so justify it. The legislative intent of said Act was that the tax increase would apply in a staggered manner to brewers whose annual beer production was of up to thirty-one million gallons measured. The tax would be increased gradually until it reached the percent of the increase of the excise tax levied on the breweries with the larger production.
However, upon implementing the provisions introduced by Act No. 69, supra, it was provided for legislative interpretations on the tax treatment
given to the beers whose production is less than thirty-one million gallons measured and whose products are not manufactured in Puerto Rico, but exported. Therefore, it is necessary to reaffirm that the legislative intent under Act No. 9, supra, is that the tax imposed under the provisions of Section 4023 of the Puerto Rico Internal Revenue Code of 1994, as amended, be applied in an uniform and staggered manner to the importers or introducers of the beers produced by small beer companies outside the Commonwealth of Puerto Rico.
Section 1.- Subsection "a" of Section 4023 of Act No. 120 of October 31, 1994, as amended, is hereby amended to read as follows: "Section 4023.- Special Exemption
(a) In lieu of the tax fixed in clauses (2) and (3) of subsection
(c) of Section 4002 of this Subtitle on all beer, malt extract and other fermented or unfermented analogous products whose alcohol content exceeds one and half percent ( $11 / 2 %$ ) per volume referred to in clauses (2) and (3) of subsection
(c) of said Section, that are produced or manufactured by persons whose total production, if any, of said products during their most recent tax year has not exceeded thirty-one million $(31,000,000)$ gallons measured, a tax shall be collected in the following manner:
million $(9,000,000)$ but less than ten million $(10,000,000)$; 3. Two dollars and fifty-seven cents ( $2.57 ) per measured gallon produced in quantities greater than ten million $(10,000,000)$ but less than eleven million $(11,000,000)$; 4. Two dollars and seventy-eight cents ( $2.78 ) per measured gallon produced in quantities greater than eleven million $(11,000,000)$ but less than twelve million $(12,000,000)$; 5. Two dollars and ninety-nine cents ( $2.99 ) per measured gallon produced in quantities greater than twelve million $(9,000,000)$ but less than thirty-one million $(31,000,000)$. b. Subject to the provisions of Sections 4024 to 4028, the benefits of this Section shall apply for a person in any taxable year following the year in which the total production of the products described in this subsection, if any, has not exceeded thirty-one million $(31,000,000)$ gallons measured. c. The benefits of this Section shall also apply to the importers of the products described in this subsection whose producers meet the requirements established in the previous paragraph."
Section 2.- This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 108 (H.B. 4550) of the $7^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to amend subsection "a" and add subsection "c" to Section 4023 of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to clarify the scope and legislative intent of its provisions, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $25^{ ext {th }}$ of October of 2006.
Francisco J. Domenech Director