The Municipal Revenue Collection Center (CRIM) intends to recover $ 400 million in contributions to real estate on the island out of a total of about $ 4 billion owed to property owners, including principal, interest and fines.
According to the executive director of CRIM, Reinaldo Paniagua Latimer, this figure is multimillionaire, because there is a taxpayer debt that has been stretching since the 70s. He pointed out that after the abolition of penalties and fines, the main debt is $ 1,700 million.
CRIM’s proposal is to offer discount levels based on specific dates so that property owners with debt can update their contributions. He explained that otherwise, when the overdue portfolio is sold on the secondary market, people, businesses or industries will have to pay 100% of the amount owed.
As reported, the plan provides for the provision of discounts from 25% to 55% to debtors, as well as the abolition of penalties and fines.
“We expect to collect about $ 400 million in debt from residential and commercial properties, mainly residential buildings,” said Paniagua Latimer, and said the reduced payment opportunity will affect taxpayers who have old debts before fiscal 2016.
The official said that in addition to collecting a significant part of the amount due, the purpose of the special regulation of benefits for a taxpayer in collecting a debt is to update the register of taxpayers’ debts.
“Those who remain in debt between 2017 and 2020 will also benefit with a different type of discount. This plan will apply discounts in stages and will operate from November 5, 2021 to June 30, 2022, ”he added.
For his part, the chairman of the board of CRIM and the mayor of Orokovis, Jesus Colon Berlingeri, indicated that “the income generated during the period during which the discount plan is in effect will be used to pay off debts remaining with the municipalities. as a result of the invalidity of Law 29 and unfinished balances of loans granted under Laws 42-200 (debt / liquidation) and 146-2001 (sold accounts), “he clarified.
According to Paniagua Latimer, the discount plan is the last chance debtors have before CRIM puts up a portfolio of overdue invoices for sale, as proposed in the financial plan approved by the Fiscal Control Board.
He added that CRIM chose this alternative discount “because of past experience and the current economic conditions on the island, we are at high risk and there are no investors who can give more than 20 or 30 cents per dollar. Here, what cannot be returned is sold, and when an investment fund comes, it wants to return 100% of the debtors. “
CRIM has sold debt portfolios in the past, which it later bought back because the secondary market buyer did not receive the expected refund. This happened in the late 90s when there was a sale of overdue invoices and CRIM invested $ 100 million to buy them back. “It’s not perfect, but it’s not unusual,” said Paniagua Latimer.
The approved regulation provides for discounts of up to 55% on debts accumulated until 2016, and will be phased in. Debts prior to fiscal 2016 will not pay interest, penalties or fines.
According to Paniagua Latimer, only the principal amount with various discounts will be charged. For example, 45% of the total debt will be paid by 2016 if the taxpayer pays between 5 November 2021 and 31 January 2022, which is a 55% discount on the principal.
If 60% of the total principal is paid before 2016, if the payment is made between February 1 and April 30, 2022, this is equivalent to a 40% discount on the principal.
For repayment of 75% of the total principal until 2016, if the payment is made between May 1, 2022 and June 30, 2022, it represents a 25% discount on the principal.
In the case of arrears between 2017 and 2020, only the principal amount of the debt will be paid – no interest, additional fees or penalties – if the payment is made between 5 November 2021 and 31 January 2022. pay the principal plus interest between 2017 and 2020 if the payment is made between 1 February 2022 and 30 April 2022.
Property owners wishing to take advantage of discounts and in doubt about the amount of debt should log into the digital CRIM portal, www.crimpr.net… They can also call 787-625-2746 or visit any of CRIM’s regional offices.