After approval of Municipal Ordinance Number 26, Series 2019-2020, the municipality of Guaynabo published the “Regulation for the Collection of Rights for the Use and Maintenance of Easements in the Autonomous Municipality of Guaynabo to the Telecommunications and Cable Television Companies”, on January 15, 2020.
Legal Background
Act 81-1991 (the Autonomous Municipalities Act of the Commonwealth of Puerto Rico) granted municipalities the authority to impose and collect fees or charges on telecommunications and cable television companies that conduct business or operations in the municipality, for the use and maintenance of the easements (in Spanish, servidumbres de paso) used to install and maintain their infrastructure and equipment.
Based on the foregoing, the Regulation was created to establish the procedural guidelines through which the municipality will impose and collect rights, fees or charges for the use and maintenance of municipal easements used by the telecommunications and cable television companies to install and maintain infrastructure and equipment.
Charges
Among other dispositions, the Regulation has established that as of January 15, 2020, the following fees or charges will apply to all telecommunications and cable television companies in regards to their easements in the municipality, excluding those easements that such companies have with the Puerto Rico Electric Power Authority (PREPA, or AEE by its Spanish acronym ):
Type of Fee |
Description |
Application Fee for the Use of Municipal Easements |
$250.00 per application |
Inspection Fee for Works Built or Installed Municipal Easements |
$100.00 per event |
Fee for Obstruction and/or Interruption of Municipal Easements |
$100.00 per event |
Fee for Excavation and/or Degradation of Structures in Municipal Easements |
$3.00 per square foot of pavement impacted by the excavation |
Fee for Use of Municipal Easements |
$0.02 per linear foot, annual payment |
At RSM Puerto Rico, we can advise you on this matter. Please contact our tax advisors at (787) 751-6164, or email us at [email protected] for help or more information.