Mayors Federation rejects proposal for an Inventory Tax moratorium
By The Star Staff
The directors of the Puerto Rico Mayors Federation on Thursday rejected by resolution the proposal of Senate President José Luis Dalmau Santiago to establish a 180-day moratorium on the Inventory Tax.
“The Inventory Tax is collected by the Municipal Revenue Collections Center (CRIM), in favor of all the municipalities of Puerto Rico,” said Mayors Federation President Gabriel Hernández Rodríguez and Jesús Edgardo Colón Berlingeri, who is president of the Municipal Revenue Collections Center (CRIMby its Spanish acronym) governing board. “This tax represents the core of the income received by the municipalities of Puerto Rico on a recurring basis to be able to comply with our obligations to our citizenry.”
Hernández Rodríguez and Colón Berlingeri, who are the mayors of Camuy and Orocovis, respectively, said establishing such a moratorium would mean that the municipalities would not have enough money to deal with matters of safety, health, collection and disposal of solid waste, medical emergencies and the payment of employee payroll.
“The tax on personal property is estimated based on the amount paid in the previous year,” the mayors said. “It means that the impact of this moratorium would be reflected in the payment of the estimated return for the month of August 2022, this being the first deposit that the taxpayer must make to comply with the estimated payments established by law. The code would have to be amended in order to modify the calculation for that year.”
They stated that if the moratorium were approved, the municipalities would lose around $120 million in collections.