Hearing on bill to let CRIM retroactively tax abandoned properties to last utility bill draws broad municipal support

A House committee on Sept. 17 heard testimony on Senate Project 456, a measure to amend Article 7.041 of Law 107-2020 (Código Municipal de Puerto Rico) to allow the Centro de Recaudación de Ingresos Municipales (CRIM) to make the imposition, notification and collection of property taxes on abandoned properties retroactive to the full period of abandonment as determined by the last water or electric bill.

The proposal, presented at the request of Mayor Juan Carlos García Padilla of Coamo and introduced in the Senate by President Tomás Rivera Schatz, was described by supporters as a tool to help municipalities repossess and rehabilitate long-vacant lots for housing and commercial reuse.

Mayor Juan Carlos García Padilla, mayor of Coamo, told the committee the change would put municipalities “in a better position” to reclaim abandoned parcels and make them available to first-time buyers and developers. “Lo que estamos pidiendo es que esta propiedad... se retrotraiga la contribución al último año que podamos identificar que estuvo en uso, que es la factura del uso agua,” García Padilla said.

Why it matters: Backers said the bill would let municipalities recover revenue tied up in long-abandoned properties and reduce incentives to leave properties fallow, supporting rehabilitation and new housing development. Speakers said the change could affect tens of thousands of vacant lots across Puerto…