P.R. Laws tit. 13, § 31037
(a) When dealing with taxable gross estates and the decedent has earned for three (3) years before the date of his/her death over fifty percent (50%) of his/her net income from farming, poultry or animal husbandry industries, one hundred percent (100%) of the value of such properties which constitute active units of farming, poultry or animal husbandry production shall be deductible, insofar as such properties remain as active production units for a period of not less than ten (10) years from the time of death of the decedent.
(b) Taxes deferred pursuant to this section shall constitute a preferred lien in favor of the Government of Puerto Rico on transferred properties eligible for the one hundred percent (100%) deduction above. This lien shall originate at the time of death of the decedent and shall be preferred over all other debts, credits or obligations of any kind which originate on or after the time of death and shall remain effective for a period of ten (10) years as long as the properties continue to be active production units. At the end of the ten (10) year term, the property shall be fully exempt from payment of taxes on gross decedent’s estates.
(c) The Secretary of Agriculture shall certify annually to the Secretary that the eligible unit is an active farming, poultry or animal husbandry production unit.
(d) The exemption granted under this section may be claimed together with the deductions established in § 31034 of this title.
History —Jan. 31, 2011, No. 1, § 2023.07, retroactive to Jan. 1, 2011.