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MI CUENTA

Exemptions and Exonerations

 

Housing

Real property (residential) tax exoneration

The exemption from taxes imposed on residential real property to the extent of $15,000 of assessed valuation for tax purposes. This applies to a single dwelling for the same taxpayer, up to a “cuerda” (measure of land) and the property is the primary residence.

What happens if you own two residential properties, one occupied by my immediate family and one by me?

In cases when the taxpayer owns two properties, they must choose which (one) of both they prefer to be granted the benefit of exemption.

The residence for which the exemption was requested is newly built and has not been appraised for tax purposes. I do not own other property exempted for the requested benefit year.

If the taxpayer acquires title of a residential property that was built for sale and appraised for tax purposes after the date of acquisition, it may have the benefit of exemption even if its taxed under the name of a corporation, person or construction company, provided the taxpayer does not have the exemption benefit for another property the same year. You must file the application for exemption within 30 days immediately following the date of acquisition.

I have mortgage financing on the residence for which the exemption was request and then when it was appraised by CRIM the tax withheld by the mortgagee is higher than the actually imposed.

After the property was appraised and payment adjusted, if there is a difference between the amount deposited by the taxpayer and the amount actually paid by the mortgagee on behalf of the taxpayer, it shall be the obligation of the mortgagee to refund the resulting excess to the taxpayer.

I did not filed an exoneration request under my name within a period of 30 days immediately following the date of acquisition or occupying.

In the occurrence of extraordinary circumstances that prevented the filling of a timely request for exemption, they must be demonstrated to the satisfaction of the Executive Director or his authorized representative, as a requirement to consider an application for retroactive exemption. (In this case you must submit an application for retroactive exemption or Article 8C).

¿Qué necesito para radicar la solicitud de Exoneración Contributiva?

Requirements and documents needed in order to apply for exemption:

  • Complete Form AS-38 within 30 days immediately following the date of acquisition.
  • Property tittle evidenced by deed or other legal document.
Veterans

Veteran’s residence tax exemption

An exemption of $5,000 of taxable value is granted on the property that is the residence of the veteran or his immediate family. This applies to veterans, disabled veterans and injured veterans.

I am a widow(er) of a disabled veteran, ¿do I have the right to enjoy the tax exemption granted on the property used as my primary residence?

The exemption for a disabled veteran also applies to widows and widowers of veterans that at the moment of death were disabled, as well as younger children and older who are disabled.

Requirements and documents needed in order to file an application:

  • Complete Form AS-38 within 30 days immediately following the date of acquisition.
  • Property tittle evidenced by deed or other legal document.
  • Submit a copy of Form 214 (Discharge Form).
  • Disabled veterans must submit a certification from the Veterans Administration stating the percent (%) of disability. This will be submitted when the request is filed for the first time.

Surviving spouse exemption / Law 83, Section 2.02

spouse that continues occupying the property and entitled to keep the tax exemption for primary residence. In case that a Declaration of Heir, the surviving spouse is required to file a new application for tax exemption. (To learn more about the requirements, please contact your nearest CRIM office.)

Retroactive Exoneration

Retroactive exemption / Law 83, Section 8C

This benefit may be granted retroactively when demonstrated beyond any doubt that the owner occupied the property for the requested years and no other property was exempt during those years.

Requirements and documents needed in order to file an application:

  • Certification from the Water and Sewage Authority stating the date the service began and the name of the person to whom it was provided.
  • Certification form the Electric Power Authority stating the date the service began and the name of the person to whom it was provided.
  • Property tittle evidenced by deed or other legal document.
Agriculture properties

Tax exemption for a property used for agricultural

Exemption for total payment of property taxes, personal and real properties, including land, buildings, equipment, accessories and vehicles of "bona fide" farmers, which are own or have under lease or usufruct, and that are intensively used in the agricultural business. (To learn more about the requirements, please contact your nearest CRIM office.)

Coop

Exemption to cooperatives

cooperatives shall be exempt from payment of all taxes on personal property and real property, valued up to $500,000 (as long as it belongs to the cooperative. To learn more about the requirements, please contact your nearest CRIM office.)

Special Corporation Tax Exemption for Municipal Development

these Special Corporations should be non-profit. (To learn more about the requirements, please contact your nearest CRIM office.)

Exemption to non-profit entities

Shall be exempt from imposition of taxes on real and personal property that belongs to and registered in the name of any corporation, institution, association, or organized nonprofit entity (churches, hospitals, etc..) under the laws of Puerto Rico, dedicated among others, to religious purposes, charitable, scientific, literary, educational, recreational, and civic leagues or organizations, joint owners, residents associations, employee associations, and in general any other nonprofit organization whose net properties and utilities does not benefit any particular individual or shareholder. (To learn more about the requirements, please contact your nearest CRIM office.)

Is the property used by a church entitled for an exemption if it’s registered to a minister, priest, pastor or parishioner?

It has no right, it must be registered to a non-profit institution.

If part of the church property is not being used or used for other non-profit purposes?

This part is subject to imposition of taxes.

Hospitals

Exemption to hospital units with profit purposes

Exemption is granted over real and personal property for a term of 10 years to these hospital institutions. (To learn more about the requirements, please contact your nearest CRIM office.)

Rent benefits for the elders

Tax exemption under the rental housing program for seniors with a low income

an owner that builds or rehabilitate a real property to be leased to an elderly (65 years or more), will be entitled to a tax exemption of 90% on the property, for a term of 20 years. (To learn more about the requirements, please contact your nearest CRIM office.)

Government

Exemption to properties acquired by the Commonwealth of Puerto Rico or the Government of the United States of America

the owner is an exemption from the payment of property tax if the property was acquired by voluntary purchase or condemnation by the Commonwealth of Puerto Rico or the Government of the United States subject to the established conditions. (To learn more about the requirements, please contact your nearest CRIM office.)

Tax exemption for affected properties by official maps and/or programs of the Planning Board

those properties wholly or partly affected by plans or approved official road maps or included by recommendations of the Planning Board, the 4 years Investment Program and/or maps of usage are exempt from the payment of any tax (Organic Law of the Planning Board. To learn more about the requirements, please contact your nearest CRIM office.)

Historic area

Exemption for historic properties

the exemption shall be for historic areas designated by the Institute of Culture. (To learn more about the requirements, please contact your nearest CRIM office.)

Free trade zone

Exemption for the free trade area

any individual, corporation, partnership, cooperative and other entities that own a real or personal property within the limits of the Free Trade Zone, must file an application for a tax exemption at CRIM, which will apply to personal property (including inventories, machinery and equipment, for companies that maintain operations within the Zone or Subzone of Foreign Trade in Puerto Rico), and an exemption of 60% of the appraised value of all real property (including private ownership) located within either the Zone or Subzone of Foreign Trade in Puerto Rico. (To learn more about the requirements, please contact your nearest CRIM office.)