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PS 824

“Para enmendar los Artículos 7.135, 7.136, 7.148, 7.162 y 8.001 de la Ley 107-2020, según enmendada, conocida como “Código Municipal de Puerto Rico” a los fines de establecer una nueva metodología de tributación de la contribución sobre el renglón de inventario; computar la imposición contributiva sobre el valor del costo del inventario vendido a base de un promedio anual; para otorgar al Centro de Recaudación de Ingresos Municipales, la facultad de requerir al Departamento de Hacienda aquella información o datos pertenecientes a los contribuyentes del Centro de Recaudación de Ingresos Municipales, sin que esta se entienda como una renuncia a las obligaciones del Departamento o del Gobierno de Puerto Rico para con el Servicio de Rentas Internas de Estados Unidos; y para otros fines relacionados.”

2025-2028 Session

The bill introduces a new annual-average COGS method to tax inventory for municipalities and expands CRIM-Hacienda data sharing to enforce the tax.

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Bill Summary · PS 824

Summary of Puerto Rico Senate Bill PS 824

Overview

Bill PS 824 proposes amendments to the Puerto Rico Municipal Code (Ley 107-2020, as amended), specifically targeting the taxation of the inventory line item. The core ideas are to establish a new method for computing the municipal contribution on inventory, adopt an annual-average basis for the cost of goods sold (COGS), and expand data-sharing powers between the Centro de Recaudación de Ingresos Municipales (CRIM) and the Department of Hacienda. The bill also clarifies that such data requests do not constitute a renunciation of the government’s obligations to the U.S. Internal Revenue Service (IRS). The measure is intended for “other related purposes.”

Purpose and Intent

  • Create a new methodology for taxing the inventory line item within the municipal code framework.
  • Change the taxation base to the annual-average cost of goods sold for inventory-related taxes.
  • Enhance CRIM’s ability to obtain information from Hacienda to administer or enforce the municipal tax on inventory.
  • Preserve the U.S. IRS relationship by explicitly stating that information-sharing does not waive Puerto Rico’s federal tax obligations.

Key Provisions (as described)

  • Amendments to:
    • Article 7.135
    • Article 7.136
    • Article 7.148
    • Article 7.162
    • Article 8.001 of Ley 107-2020 (Código Municipal de Puerto Rico)
  • Taxation method:
    • Introduce a new approach to taxing the inventory line item.
    • Compute the municipal tax on the value of the cost of inventory sold using an annual-average basis (COGS).
  • Data sharing between agencies:
    • Grant CRIM authority to request information or data from Hacienda belonging to CRIM taxpayers.
    • Clarify that such requests do not imply any renunciation of Hacienda’s or the Puerto Rico Government’s obligations to the IRS.

Who is Affected

  • Municipalities under CRIM and their taxpayers:
    • Businesses with inventory subject to municipal tax would be assessed under the new annual-average COGS method.
    • Municipal tax collections and administration could be reformulated under the new method.
  • Government Agencies:
    • CRIM gains enhanced information-gathering powers from Hacienda for enforcement and administration.
    • Hacienda’s data-sharing role with CRIM would increase, under the bill’s framework.
  • Federal-tax context:
    • The bill explicitly states that data sharing does not affect obligations to the IRS.

Procedural and Timeline Details

  • Introduced: October 20, 2025
  • First Reading in Senate: October 23, 2025
  • Referred to: Senate committees (specific committees not listed)
  • Next steps: Committee consideration, potential amendments, and floor votes in the Senate, followed by potential reconciliation with the House (not specified in the provided information).

Notes

  • The exact mechanics (rates, thresholds, transition provisions, effective date) are not provided in the summary. The bill’s full text would clarify how the annual-average COGS method would be calculated, any phase-in periods, and the administrative process for CRIM-Hacienda data requests.

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

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