Ley 83 del 2008
Resumen
Esta ley enmienda el Código de Rentas Internas de Puerto Rico de 1994 para eximir a la Autoridad de Energía Eléctrica (AEE) y a las industrias y negocios establecidos en Puerto Rico del pago del impuesto especial sobre el combustible (excise tax) cuando adquieren fuel oil residual No. 6 para la generación de electricidad o para sus procesos de producción, respectivamente. La exención aplica si la gravedad específica del combustible no excede 24.9 grados API. La ley tiene efecto retroactivo para la AEE hasta el 15 de noviembre de 2006.
Contenido
(No. 83)
(Approved on June 2, 2008)
AN ACT
To add subsections
(d) and
(e) and renumber the present subsection
(d) as subsection
(f) of Article 2009 of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994", with the purpose of exempting the Puerto Rico Electric Power Authority from the payment of the excise tax on fuel when the latter acquires Residual Fuel Oil No. 6 to generate electricity, as well as when industries and business established in Puerto Rico acquire said fuel for their production processes.
STATEMENT OF MOTIVES
Act No. 117 of July 4, 2006 better known as "Taxpayers Justice Act of 2006" ("Act No. 117"), among other things, substituted the general excise tax with a broad base sales and use tax as part of the amendments incorporated into Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994." Through some of the amendments incorporated into the Code, Act No. 117 renumbered several articles and modified others. As part of said transactions, former Article 2010, in addition to becoming the current Article 2009 of the Code, was also amended.
Act No. 117 eliminated the word "maritime" from paragraph (3) subsection
(a) of the then Article 2010. In doing so, all fuel, whether maritime or not, introduced into the Island as of November 15, 2006, became taxable, including residual fuel oil no. 6 used by the Puerto Rico Electric Power Authority (PREPA) to generate electricity.
The imposition of the excise tax on the referred fuel results in an increase of the cost of electricity provided by PREPA and, consequently, in an increase of the cost of electricity to the consumers. As measured by PREPA, this has an approximate effect of eighty-seven (87,000,000) millions of dollars for PREPA, and eventually, for the consumer. To such purpose, the Legislature deems necessary to correct said situation through a retroactive amendment in order to exempt PREPA from payment of the excise tax established on Article 2009 of the Code, when PREPA acquires the residual fuel oil no. 6 with the purpose of using it to generate electricity.
We are also adding equal exemption for the industries and business established in Puerto Rico that has a similar use for residual fuel oil no. 6. This exemption was likewise included in the Internal Revenue Code previous to Act No. 117, supra, and was omitted in the same Article.
BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO:
Article 1 - Subsections
(d) and
(e) are added, and current subsection
(d) is renumbered to
(f) of Article 2009 of Act No. 120 of October 31, 1994, as amended, known as "Puerto Rico Internal Revenue Code of 1994", to be read as follows: "Section 2009 - Fuels
(a) ...
(b) ...
(c) ...
(d) The excise tax established in subsection
(a) of this Article shall not apply to residual fuel oil no. 6 , when the latter is acquired by the Puerto Rico Electric Power Authority for the generation of electricity. This subsection will apply if the specific gravity of said fuel does not exceed 24.9 API
degrees on the basis of a corrected temperature of sixty degrees Fahrenheit $\left(60^{\circ} \mathrm{F} ight)$.
(e) The excise tax established in subsection
(a) of this Article shall not apply to the residual fuel oil no. 6 when the latter is acquired by industries and business established in Puerto Rico to be used in their production processes. This subsection shall apply when the specific gravity of said fuel does not exceed 24.9 API degrees on the basis of a corrected temperature of sixty degrees Fahrenheit $\left(60^{\circ} \mathrm{F} ight)$.
(f) The articles, including gasoline, aviation fuel, gas oil or diesel oil or any other fuel subject to the provisions of this Article shall be exempted from the sale and use tax established in subsection BB.
Pursuant to Act No. 82 of June 26, 1959, as amended, the levying and collection of the excise tan on gasoline prescribed in paragraph (1) of subsection
(a) of this Article shall be suspended with regard to aviation fuel and any other fuel product for use or consumption in the propelling of aircraft that are destined to be consumed in air travel between Puerto Rico and other places, or in air travel within the territorial limits of Puerto Rico, provided that in lieu of the tax levied in this Article, the Ports Authority levies upon said
products a tax of two cents ( $2 otin$ ) per gallon or fraction thereof and collects it from the suppliers operating in the airports of Puerto Rico."
Article 2 - This Act shall take effect immediately after its approval, provided that provisions of subsection
(d) of Article 2009 of Act No. 120 of October 31,1994, as amended, known as the "Internal Revenue Code of Puerto Rico of 1994" shall have retroactive effect to November 15, 2006.
CERTIFICATION
I hereby certify to the Secretary of State that the following Act No. 83 (H.B. 4256) of the $7^{ ext {th }}$ Session of the $15^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to add subsections
(d) and
(e) and renumber the present subsection
(d) as subsection
(f) of Article 2009 of Act No. 120 of October 31, 1994, as amended, known as the "Puerto Rico Internal Revenue Code of 1994", with the purpose of exempting the Puerto Rico Electric Power Authority from the payment of the excise tax on fuel when the latter acquires Residual Fuel Oil No. 6 to generate electricity, as well as when industries and business established in Puerto Rico acquire said fuel for their production processes, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $15^{ ext {th }}$ of August of 2008.
Francisco J. Domenech Director