Us Congress 2023-2024 Regular Session

Us Congress House Bill HB462

Introduced
1/24/23  

Caption

Real Estate Exchange Fairness Act of 2023 This bill requires Puerto Rico to be treated as part of the United States for the purpose of determining if an exchange of real property qualifies as a like-kind exchange for tax purposes. (Under current law, real property located in the United States and real property located outside of the United States are not property of a like kind.)

Impact

The enactment of HB 462 would have a considerable impact on real estate transactions involving Puerto Rico. By aligning Puerto Rico's tax treatment for like-kind exchanges with that of the mainland United States, the bill aims to simplify and enhance the real estate market in Puerto Rico. This could lead to an increase in investments and property transactions, as investors would no longer face the complexities created by distinguishing between U.S. and Puerto Rican properties. Furthermore, this change could encourage more equitable treatment under federal tax law and foster economic development in Puerto Rico.

Summary

House Bill 462, also known as the Real Estate Exchange Fairness Act of 2023, proposes an amendment to the Internal Revenue Code of 1986. The primary goal of the bill is to treat Puerto Rico as part of the United States when determining if a property exchange is qualified as a like-kind exchange for tax purposes. This amendment is significant because under current law, properties located in the United States and those outside of it, such as in Puerto Rico, are treated differently regarding like-kind exchanges, creating complications for property transactions involving Puerto Rican real estate.

Contention

While the bill presents potential benefits for property owners and investors in Puerto Rico, it may also face some contention. Critics could argue that special tax treatments or exemptions for certain areas may undermine the broader tax system or create uneven advantages within the real estate market. However, proponents of the bill contend that this amendment simply brings Puerto Rico in line with the treatment of other U.S. territories and states, fostering greater consistency and fairness in real estate transactions.

Companion Bills

No companion bills found.

Previously Filed As

US SB2964

A bill to amend title 36, United States Code, to grant a Federal charter to the Veterans Association of Real Estate Professionals, and for other purposes.

US HB25

FairTax Act of 2023 This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

US HB376

Puerto Rico Film, Television, and Theatre Production Act of 2023 This bill extends the expensing provisions for film, television, and theater productions to productions in Puerto Rico. (Expensing permits the write-off of property costs in the current taxable year rather than amortizing such costs over a period of years.)

US HB127

Protection from Obamacare Mandates and Congressional Equity Act This bill alters provisions relating to the requirement to maintain minimum essential health care coverage (i.e., the individual mandate), as well as provisions relating to health care coverage for certain executive branch and congressional employees. Specifically, the bill exempts individuals from the requirement to maintain minimum essential health care coverage if they reside in a county where fewer than two health insurers offer insurance on the health insurance exchange. Under current law, there is no penalty for failing to maintain minimum essential health care coverage. The bill also requires certain executive branch and congressional employees to participate in health insurance exchanges. Under current law, Members of Congress and their designated staff are required to obtain coverage through health insurance exchanges, rather than the Federal Employee Health Benefits (FEHB) Program. Current regulations authorize government contributions toward such coverage and require Members of Congress to designate which members of their staff are required to obtain coverage through an exchange. The bill requires all congressional staff, including employees of congressional committees and leadership offices, to obtain coverage through an exchange. The bill also prohibits Members of Congress from having the discretion to determine which of their employees are eligible to enroll through an exchange. Further, the President, Vice President, and executive branch political appointees must also obtain coverage through exchanges, rather than FEHB. The government is prohibited from contributing to or subsidizing the health insurance coverage of the officials and employees subject to this requirement, including Members of Congress and their staff.

US HB601

To modify certain requirements to encourage the recovery of Puerto Rico and the United States Virgin Islands.

US HB1307

To repeal the mandatory flood insurance coverage requirement for commercial properties located in flood hazard areas, and for other purposes.

US HB5108

To abolish the United States Agency for International Development, and for other purposes.

US HB254

TRICARE Equality Act This bill addresses the administration of Department of Defense (DOD) health care programs and benefits in Puerto Rico. Specifically, the bill requires DOD to treat the administration of TRICARE Prime availability in Puerto Rico in a similar manner as a state. The bill also requires DOD to ensure that, in providing travel and transportation allowances related to specialty medical treatment, individuals located in Puerto Rico are eligible to receive such allowances. The Federal Electronic Health Record Modernization Office must coordinate with the Department of Health of Puerto Rico to share health information through the Joint Health Information Exchange.

US HB9591

To require the Administrator of General Services to sell certain property related to United States Penitentiary, Leavenworth, and for other purposes.

US HB375

Puerto Rico Air Cargo Industry Empowerment Act This bill modifies foreign civil aircraft regulation with respect to air cargo in Puerto Rico. Current law prohibits foreign civil aircraft from exchanging cargo in the United States unless the aircraft is specifically authorized to do so or the exchange occurs in Alaska. This bill applies air cargo regulation to Puerto Rico in the same way that it applies to Alaska. Thus, the bill allows foreign civil aircraft to stop in Puerto Rico and exchange cargo with other air carriers.

Similar Bills

No similar bills found.