Ley 194 del 2007

(No. 194)

(Approved December 13, 2007)

AN ACT

To amend subsection

(a) of Section 2011 of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to correct the errors of omission introduced in said statute by Act No. 19 of March 6, 2007.

STATEMENT OF MOTIVES

Act No. 19 of March 6, 2007, amended subsection

(a) of Section 2011 of the Puerto Rico Internal Revenue Code of 1994 ("Code") in order to reduce the tax rates to be paid for excise taxes on motor vehicles.

However, when amending said Section, inadvertently, only the tax rates applicable to automobiles were included, leaving out of the text the tax rates applicable to trailer trucks, buses and trucks, which pay a different rate from that of automobiles under the "Code."

We deem it is pertinent and urgent to correct this error. Therefore, amendments directed toward this purpose are herein proposed to subsection

(a) of Section 2011 of the "Code."

BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO:

Section 1.- Subsection

(a) of Section 2011 of Act No. 120 of October 31, 1994, as amended, is hereby amended to read as follows: "Section 2011.- Vehicles

(a) An excise tax shall be levied, collected and paid on every vehicle that is introduced from abroad or manufactured in

---

Puerto Rico, as established subsequently following the description of said vehicle: (1) Automobiles: in the case of vehicles introduced from abroad or manufactured in Puerto Rico before March 16, 2007, the percent on the taxable price in Puerto Rico corresponding to the following table:

TAX TO BE PAID

If the taxable price in Puerto Rico is:

Up to $6,170 Over $6,170 and up to $10,690

Over $10,690 and up to $21,380

Over $21,380 and up to $31,780

Over $31,780 and up to $44,890

Over 44,890

The tax will be: $750 (minimum tax) $750 plus 13% of the excess over $6,170 $1,338 plus 25% of the excess over $10,690 $4,011 plus 30% of the excess over $21,380 $7,130 plus 35% of the excess over $31,780 40% (2) Automobiles: in the case of vehicles introduced from abroad or manufactured in Puerto Rico after March 15, 2007, the percent on the taxable price in Puerto Rico corresponding to the following table:

---

TAX TO BE PAID

If the taxable price in Puerto Rico is:

Up to $6,170 Over $6,170 and up to $10,690

Over $10,690 and up to $21,380

Over $21,380 and up to $31,780

Over $31,780 and up to $44,890

Over 44,890

The tax will be: $750 (minimum tax) $750 plus 12% of the excess over $6,170 $1,292 plus 23% of the excess over $10,690 $3,751 plus 27% of the excess over $21,380 $6,559 plus 32% of the excess over $31,780 $10,886 plus 40% of the excess over $44,890

This table shall apply to all new and used automobiles introduced into Puerto Rico, except in the case of new automobiles to be exported. The Secretary shall adjust the price brackets of the above table with the purpose of protecting consumers from the adverse tax effect that inflation and its consequent increase in the consumer sales price may have over the effective excise tax specified in such table. Such adjustment shall be made by means of administrative determination, in a period not greater than three (3) years from the date of effectiveness of this Subtitle and in subsequent successive periods not greater than three (3) years. The basis for making the adjustment shall be the Durable Goods Consumption Expenditures Implicit Deflator, as published by the Planning Board. The Secretary shall publish the adjustments in a

---

newspaper of general circulation and shall submit a copy of the adjustments to the Legislature.

In any case, the adjustments made by the Secretary in the price brackets shall have the effect of lowering the tax that would otherwise apply had the inflationary adjustments not been made. (3) Trailer trucks - 17% over the taxable price in Puerto Rico (4) Buses - 20% over the taxable price in Puerto Rico (5) Trucks - 10% over the taxable price in Puerto Rico (6) Transitory Provisions. - (A) In the case that the excise tax on new and used automobiles in inventory have not been paid before the date of effectiveness of the new tax rates provided in clause (2) of this subsection, the excise taxes to be levied shall be in accordance with the new rates. (B) In the case that the excise tax on new automobiles in inventory have been paid before the effective date of the new tax rates provided in clause (2) of this subsection, the introducer, authorized distributor or dealer may claim credit for any difference resulting from the excise tax to be levied pursuant to the tax rates provided in clause (2) of this Section and the excise taxes paid pursuant to the tax rates provided in clause (1) of this Section. The credit shall apply to future excise tax payments on automobiles upon previous authorization of the Secretary.

---

In no case shall the automobiles, trailer trucks, buses and trucks pay a tax lower than seven hundred fifty (750) dollars.

(b) Definitions.- ...."

Section 2.-Effectiveness.- This Act shall take effect immediately after its approval, however, its provisions shall apply retroactively as of March 6, 2007.

---

CERTIFICATION

I hereby certify to the Secretary of State that the following Act No. 194 (H.B. 3815) of the $6^{ ext {th }}$. Session of the $15^{ ext {th }}$ Legislature of Puerto Rico:

AN ACT to amend subsection

(a) of Section 2011 of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994," in order to correct the errors of omission introduced in said statute by Act No. 19 of March 6, 2007, has been translated from Spanish to English and that the English version is correct.

In San Juan, Puerto Rico, today $15^{ ext {th }}$ of April of 2008.

Francisco J. Domenech Director