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PS 400

“Para enmendar el Artículo 2 de la Ley Núm. 7 de 4 de marzo de 1955, según enmendada, conocida como “Exención Contributiva de Zonas Históricas” y el Artículo 5.01 de la Ley Núm. 83 de 30 de agosto de 1991, según enmendada, conocida como “Ley de Contribución Municipal sobre la Propiedad de 1991”, a los fines de excluir de la exención por concepto de zonas históricas a todo Individuo Residente Inversionista, según definido bajo la Sección 1020.02 de la Ley 60-2019, según emendada, conocida como “Código de Incentivos de Puerto Rico”; y para otros fines relacionados.”

2025-2028 Session

PS 400 would remove the historic-zone property tax exemption for Individual Resident Investors (IRIs) under the Incentives Code, leaving non-IRIs still eligible.

Comisión no recomienda aprobación de la medida
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Bill Summary · PS 400

PS 400 — Summary

Purpose and intent

PS 400 seeks to amend two existing tax exemptions related to historic zones in Puerto Rico. Specifically, it would remove the historic-zone property tax exemption for a defined category of buyers/investors, known as Individual Resident Investors (IRIs), as defined in the Puerto Rico Incentives Code (Law 60-2019, Sec. 1020.02). The bill’s stated aim is to exclude IRIs from qualifying for the “Exención Contributiva de Zonas Históricas” and to align incentives with the incentives code.

Key provisions

  • Amends:
    • Article 2 of Law No. 7 (March 4, 1955) – the historic zones tax exemption.
    • Article 5.01 of Law No. 83 (August 30, 1991) – the Municipal Property Tax Exemption for 1991.
  • New rule: Exemption for historic zones would no longer apply to any Individual Resident Investor defined under Sec. 1020.02 of Law 60-2019 (Incentives Code).
  • Scope remains the same for others not identified as IRIs, i.e., non-IRIs could continue to benefit from the historic-zones exemption (subject to existing law).

Who would be affected

  • Primary impact: Owners or purchasers categorized as Individual Resident Investors under the Incentives Code who would otherwise have relied on the historic-zones exemption. These IRIs would lose the exemption and owe property taxes for properties within historic zones under the amended law.
  • Other property owners who do not meet the IRI definition would retain eligibility for the historic-zones exemption, assuming no other changes.

Procedural and timeline aspects

  • Introduced: March 10, 2025.
  • Legislative path: Appeared in First Reading in the Senate on March 10, 2025; referred to committee(s) on the same date.
  • Status: As of the latest action, the committee has “no recomienda aprobación” (does not recommend approval) of the measure.
  • Latest action recorded: October 22, 2025.

Potential impacts and considerations

  • Fiscal: If IRIs lose the historic-zones exemption, expected effect is an increase in property tax obligations for properties held by IRIs within historic zones, potentially boosting tax revenues.
  • Policy: The bill narrows targeted tax incentives by differentiating eligibility based on IRI status, which could influence investment decisions in historic zones.
  • Administrative: Implementation would require identifying IRIs under Sec. 1020.02 and applying the exemption exclusion consistently across the two amended laws.

Next steps

If the committee action changes, or the bill advances, the Senate would continue to consider amendments and a potential vote. Stakeholders (property owners, investors, historic-zone decision-makers) may want to track further committee hearings and floor votes.

Compiled from official sources — confirm details with the bill’s official record.

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