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PS 1092

Para enmendar el inciso (e) del Artículo 7.092 de la Ley 107-2020, según enmendada, conocida como “Código Municipal de Puerto Rico”, a los fines de establecer que las propiedades o facilidades muebles o inmuebles pertenecientes a una organización sin fines pecuniarios, según establecido en dicho inciso, estarán exentas de la imposición de contribuciones si dichas propiedades o facilidades son arrendadas a otras organizaciones sin fines pecuniarios; y para otros fines relacionados.

2025-2028 Session

Puerto Rico expands nonprofit property tax exemptions to include facilities rented between qualifying nonprofit organizations, reducing municipal tax revenue.

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Bill Summary · PS 1092

Legislative bill overview

Bill PS 1092 amends Puerto Rico's Municipal Code to expand tax exemptions for nonprofit organizations. Specifically, it allows properties and facilities owned by nonprofits to remain tax-exempt even when rented to other nonprofit organizations, extending the current exemption framework.

Why is this important

This change could strengthen the nonprofit sector in Puerto Rico by reducing operational costs for organizations that lease space to each other, potentially enabling more resources to flow toward their charitable missions. However, it also represents foregone municipal tax revenue that would otherwise fund local services and infrastructure.

Potential points of contention

  • Municipal revenue impact: Municipalities lose property tax income from these rental arrangements, potentially affecting their ability to fund schools, emergency services, and public infrastructure
  • Definition and oversight concerns: The bill may need clearer definitions of what qualifies as a "nonprofit organization" and mechanisms to prevent abuse or misclassification of entities
  • Scope of exemption: Questions about whether exemptions should apply to all rental scenarios or be limited to certain types of nonprofits (educational, health, charitable, etc.)

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

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