La Fortaleza: Tax reform to be presented in next session

Jean Peña Payano, legislative affairs adviser at La Fortaleza (Facebook via Jean Peña Payano)

By THE STAR STAFF

Jean Peña Payano, the legislative affairs adviser at La Fortaleza, announced Thursday that the much-anticipated Tax Reform bill is scheduled to be filed during the next legislative session.

Peña emphasized that the reform process has involved extensive discussions with the majority New Progressive Party caucus and Treasury Secretary Ángel Pantoja Rodríguez, along with members of the fiscal team at La Fortaleza.

“We’ve presented various scenarios and alternatives regarding tax rates,” Peña said. “There is a draft of the bill, and as the secretary of the Treasury stated yesterday, the Legislature has mechanisms to address bills even outside of regular filing dates.”

He added that the timing of the bill’s filing will be determined in coordination with Gov. Jenniffer González Colón.

“Whether through an extraordinary session or not, that decision rests with the governor, and I defer to her authority on that matter,” Peña stated.

Regarding the Inventory Tax, Peña confirmed that it will be addressed in the upcoming session. He referenced the governor’s recent veto of a related measure, noting that her administration remains committed to a five-year freeze on the tax, paired with a replacement proposal.

“The governor, with support from all 78 mayors and segments of the private sector, issued a veto and introduced an administration-backed bill,” Peña noted. “This bill closely mirrors House Bill [HB] 420, with some modifications. We appreciate the cooperation of both legislative leaders in filing the measure.”

The developments signal continued momentum in the administration’s legislative agenda, particularly on fiscal matters that have long been debated in Puerto Rico.

Meanwhile, the Municipal Revenue Collections Center (CRIM by its acronym in Spanish) Board of Directors Chairman Jesús Colón Berlingeri and the acting director of that agency, Javier J. García Cintrón, sent a letter to Secretary of State Rosachely Rivera Santana requesting that she convene the Inventory Tax Evaluation Committee, recently created by the governor, to begin the work of analyzing, evaluating and presenting viable alternatives to replace the inventory tax.

In the letter, the two officials mention that the committee was created by the governor when she announced that she would not sign HB 420, approved by the Legislature, which sought to amend the Municipal Code to freeze the aforementioned tax for three years and eliminate it in 2028.

“At that meeting, the governor stated that to address the issue, she would form a committee that includes representatives from CRIM, and we are ready to sit down and identify viable sources of funding to replace the approximately $314 million that the municipalities would lose with the complete elimination of the inventory tax,” the officials said in the letter.

Colón Berlingeri, who is also the mayor of Orocovis, expressed his hope that the meeting would be convened as soon as possible so that they could move forward with the work. He added that “both the mayors and business owners should resume good-faith discussions to reach an agreement that benefits both parties.”