2013 Tax Revenue Plan (amdc)

The present "TAX PLAN" is a local law, binding on all residents and passersby of the Municipality, wherein annually the rates, levies, norms and procedures related to the tax system of the Municipality of the Central District are established.

The income of the Municipality is divided into tax revenue and non-tax revenue. Tax revenue comprises income from taxes, service fees and contributions, and non-tax revenue comprises income to the municipality from sales, transfers, subsidies, inheritances, bequests, donations, fines, surcharges, interest and credits.

A tax is the monetary obligation that the Municipality requires from natural and legal persons, national or foreign, in order to obtain resources for the fulfillment of its purposes, without being obligated to provide an equivalent consideration. The character of Municipal Taxes is attributed to those determined by the Law of Municipalities and any other established as such in special laws.

A Municipal Fee is the sum of money that the Municipality collects for the actual provision of a public service to a determined person, natural or legal. Without prejudice to what is established in Article 84 of the Law of Municipalities, it shall be understood to be included under this concept the provision of a public service, direct or indirect; the use of municipal or ejidal property; the use of municipal airspace, surface or underground; natural resources of any kind; the receipt of direct or indirect benefits from the maintenance or development of Municipal Urban Infrastructure; and the request for the provision of an administrative service. To the extent that other services are provided to the community, not yet specified in this Tax Plan, these shall be regulated by Municipal Agreements and shall form part of the present Plan.

Recovery of Investments is an obligation that the Municipal Corporation imposes on owners or holders of real property and other beneficiaries for the total or partial recovery of the investment made by the Municipality in the execution of certain local public works. This recovery may be made in two ways: 1) By contribution for improvements; 2) By benefits received by the users of the work. For these purposes, the passive subject of the obligation shall be: 1) The property adjacent to such works; 2) The person benefited by the same; or 3) Private or public motor vehicles and their users. This recovery shall be carried out according to the determination of such benefit made by the Mayor's Office, through the Finance and Administration Department together with the corresponding department. The Municipality is authorized to determine fees with general character for all taxpayers, taking into account:

• 1)

  The nature of the work or improvement;

• 2)

  The degree or percentage of direct or indirect benefit;

• 3)

  The total amount to be financed;

• 4)

  The recovery period;

• 5)

  The economic and social conditions of the benefited community; and,

• 6)

  The commitments acquired by the Municipality to execute such projects. The Municipality, in the development of community benefit activities, as well as in the investment recovery process, may establish trusts with national banking institutions.

Rights are acquired through mandatory payments made by the taxpayer, either by the use of public domain resources within the municipal term of the Central District, or by the obtaining of licenses or authorizations to exercise or enjoy rights regarding matters that are under the jurisdiction of the Municipality.

A Fine is the principal pecuniary sanction imposed by the Municipality for the violation or non-compliance with Laws, Regulations, Ordinances and other municipal provisions, as well as for the failure to timely comply with municipal obligations. The following shall constitute accessory sanctions: confiscation, loss of concessions, privileges, prerogatives or exemptions. When confiscation is not possible because the merchandise cannot be seized, it shall be replaced by a fine equal to the value thereof.

Taxpayers, responsible parties, withholding agents or third parties shall incur in default if they do not pay or deposit their tax obligations within the established periods for such purpose. Default shall commence running from the day following that in which the respective payment or deposit should have been made, or in its case, from the date on which the infraction was committed.

It is the responsibility of the Municipal Corporation of the Central District to create, reform or repeal municipal levies, except for taxes and other charges decreed by the National Congress of the Republic. For this purpose, the Municipal Corporation of the Central District shall make the pertinent provisions known to the taxpayers by means of publications in the Official Journal "La Gaceta", the Municipal Gazette and the means of communication with the widest circulation in the Municipality. CHAPTER II DEFINITIONS AND TERMS

Without prejudice to what is provided in the preceding articles and for the purposes of the present Plan, the following terms are understood to mean:

• a)

  Law: The Law of Municipalities.

• b)

  Regulation: The Regulation of the Law of Municipalities.

• c)

  Plan: The Tax Plan of the Municipality of the Central District.

• d)

  Corporation: The Municipal Corporation of the Central District.

• e)

  Mayor's Office: The Municipal Mayor's Office of the Central District.

• f)

  The Municipality: Is the area that comprises the Municipality of the Central District and in which the Tax Plan is applied.

• g)

  The Ministry: Is the Secretariat of State in the Offices of Interior and Population.

• h)

  The Secretary: Is the Municipal Secretary.

• i)

  Cadastre: Is the Cadastre Management of the Municipality and the Cadastral Registry of the Municipality.

• j)

  The Treasury: Is the Municipal Treasury of the Central District.

• k)

  Levy: Is the tax or charge of a fiscal nature that the Public Treasury imposes on natural or legal persons.

• l)

  Contribution: Is the contribution that in accordance with the Law must be paid to the Municipality for the provision of services, public works of direct, collective or social security benefit. ll) Taxpayer: The municipal taxpayer, passive subject with respect to which the taxable event occurs.

• m)

  Passive Subject: Is the party obligated to comply with the tax obligations (taxes, contributions, fees, rights and other charges) established by Law or its Regulation or by the Tax Plan, whether in the capacity of taxpayer or as a responsible party.

• n)

  Passive Subject in the Capacity of Taxpayer: Are the natural or legal persons that directly or through third parties exercise economic activities within the jurisdiction of the Municipality. o) Passive Subjects in the Capacity of Responsible Parties: Are the natural or legal persons, as well as entities or groups that constitute an economic unit, which without having the character of taxpayers are obligated by express provision of the Law to comply with the commitments and obligations attributed to them. This condition falls upon: 1. The natural or legal persons, as well as entities or groups that constitute an economic unit, that are owners or responsible for companies or establishments that exercise economic activities. 2. The distributors, agents, representatives, commissioned agents, consignees, and persons who exercise in the name or on behalf of others the activities referred to in this Plan, are responsible with respect to the tax obligation generated for the person in whose name they act, without prejudice to their condition as taxpayers for the exercise of activities they perform in their own name. p) Municipal Solvency: Is the Certificate issued by the Municipality to the Taxpayers to accredit their solvency in the payment of municipal taxes. q) Sworn Statement: Document in which, under oath, the taxpayers declare to the Municipality all the information required regarding their municipal tax obligations. The sworn statement of Real Property is replaced when there exists a Cadastre prepared by the Municipality. r) Withholding Agent: Is any natural or legal person, public or private, that by provision of the Law, its regulation or this Tax Plan, is obligated to withhold from taxpayers the taxes in favor of the Municipality. s) Municipal Space: Is the space used by natural or legal persons for the installation, operation and commercialization of cable distribution networks, television, electrical, telephone, digital data cables, or any other wired or wireless telecommunications network system, cellular or any other existing in the Municipality of the Central District. t) UGA: Environmental Management Unit. u) PSA: Environmental Service Providers: are individual consultants, consulting firms and analysis laboratories that conduct environmental studies or reports that must be presented to the Municipality for environmental evaluation processes.

The Tax on Real Property is the levy that falls on the value of real estate property located within the Municipal term of the Central District, regardless of the domicile of the owner or the one who possesses it with intent to own, and shall be paid by applying a rate of three lempiras with fifty centavos (L3.50) per thousand, in the case of urban real property and two lempiras with fifty centavos (L2.50) per thousand in the case of rural property. For the application of this tax, in addition to what is established in the Law of Municipalities and its Regulation, the pertinent provisions of the Cadastre Regulation approved by Municipal Agreement Number 029-95 of March 8, 1995, published in the official journal La Gaceta dated March 25, 1995, shall be observed. Cadastral values shall be calculated on the basis of the cadastral update carried out for the five-year period 2010-2015, with the application of the solidarity table approved by Agreement 0014 contained in the Extraordinary Minutes Number 09 dated March 23, 2010.

The tax on real property shall fall on the cadastral value registered on May 31 of each year in the Municipal Cadastre; notwithstanding the foregoing, for non-cadastral areas, the Cadastre Management may appraise values according to market prices or accept the values of properties declared in the sworn statements presented by owners or legal representatives, without prejudice to the appraisal that may subsequently be carried out; in case of discrepancy between the cadastral value and the declared value, the higher value shall be used as the basis. The fiscal period of this tax begins on June 1 and ends on May 31 of the following year.

The Tax on Real Property shall be paid with a deadline until August 31 of each year, in case of default an annual interest shall be applied equal to the rate used by banks in their active commercial operations, plus a surcharge of Two Percent (2%) annually calculated on outstanding balances.

In accordance with the cases provided for in Article 85 of the Regulation of the Law of Municipalities, the individual cadastral value may be adjusted at any time by the Cadastre Management. For the purposes of the application of this article, the Urban Information Center (CIUR) shall provide in the most transparent manner all information of the city in an organized way and with the most adequate technology.

Those contemplated in articles 76 of the Law, 89 and 90 of its Regulation and in special and general laws in effect are exempt from the payment of the Tax on Real Property. The real properties that by virtue of the Law are exempt and all other interested parties in obtaining the corresponding benefits shall request it annually, in writing, before the Municipal Secretary, and the qualification of exemption requests must be carried out on the basis of criteria of profitability, gains, profits or surpluses obtained and the type of reinvestments made by the applicants. Likewise, they shall be subject to the audits and investigations that are deemed pertinent, without prejudice to the reports that they periodically submit to the Municipal Corporation. The files remitted and resolved shall be returned to the Municipal Secretary for its filing and custody.

Taxpayers subject to payment of the Tax on Real Property are obligated to present an Affidavit before the Cadastral Office in the following cases:

• a)

  When they make improvements to their real property;

• b)

  The presentation of identity document, passport, numeric RTN and other documents that may be required according to the needs of the case.

• c)

  When they transfer title to any real property or properties owned by them; this obligation is joint and several with the acquirer.

• d)

  In the acquisition of real property through inheritance, legacy, and donation. For these purposes, the Cadastral Management Office shall provide declaration forms free of charge, which must be presented within thirty (30) days following the completion of improvements, the transfer of title or possession of the real property or properties, or the signing of the promise of sale contract. The failure to present the affidavits referred to in this article shall be sanctioned with a fine equivalent to 10% of the total annual amount of tax to be paid, and an annual interest equal to the active rate that banks of the national financial system use in their commercial operations, plus a surcharge of two percent (2%) annually calculated on balances in accordance with Article 109 of the Law of Municipalities. The Municipal Office, through the corresponding departments, reserves the right to conduct investigations it deems pertinent regarding the real properties to verify that improvements, transfers, and/or acquisitions of real property have been correctly carried out.

The Municipal Corporation shall establish the system of anticipated payment of the Tax on Real Property, in accordance with what is established in Article 165, subsection a) of the General Regulation of the Law of Municipalities and this Tax Plan. The System of Source Withholding for payment of the Tax on Real Property and solid waste and residential fire services is established on an optional basis. For these purposes, persons natural or juridical, of public or private law, that have more than five permanent employees shall voluntarily constitute themselves as withholding agents, as well as financial or social security institutions through which the passive subject of the tax has acquired real property located within the municipal term, by means of obtaining a mortgage loan or that has obtained a loan for another purpose, backed by the mortgage guarantee of said property. The responsible agents shall effect withholdings during the period from March 1 to August 31. For the calculation of the amount to be withheld through the respective monthly installments, the cadastral appraisal made on May 31 of the prior calendar year shall be taken as the tax base, without prejudice to the adjustment that is effected by subsequent cadastral appraisal updates. The monthly withheld amounts shall be paid by those responsible to the Municipal Treasury or to authorized collection offices, within fifteen days following the month in which the withholding was made, according to the form or declaration that is approved for these purposes or is incorporated into those already existing. Withholding Agents that accept this obligation must present no later than February 15 of each year in the form that the Municipal Office shall provide, a list of the employees who are owners or possessors of real property and who have expressly and in writing consented to incorporate themselves into this system, indicating among others, their personal data, the cadastral code, their exact location, and in case of not being the owner, the name of the owner. The fact of not having the list form does not exempt from the obligation of its presentation.

In accordance with Article 113 of the Law of Municipalities, real properties shall guarantee payment of the taxes that fall upon them, regardless of the change of owners that occurs on them, even when they refer to judicial or extrajudicial foreclosures, the new owners must cancel said taxes, prior to their registration in the Property Registry. For these purposes the Municipality shall implement the most suitable mechanism in coordination with the Property Registry of Francisco Morazán.

The Tax on Industry, Commerce and Services is the one paid monthly by any natural person or individual merchant or business entity, for their commercial, industrial, mining, agricultural activity, provision of public and private services, electronic communication, urban development construction companies, casinos, savings and loan banking institutions, insurance companies and any other lucrative activity, which shall be taxed according to their volume of production, income or annual sales as follows: FROM LEMPIRAS TO LEMPIRAS TAX PER THOUSAND 0.00 500,000.00 0.30 500,001.00 10,000,000.00 0.40 10,000,001.00 20,000,000.00 0.30 20,000,001.00 30,000,000.00 0.20 30,000,001.00 onwards 0.15 For purposes of payment of this tax, passive subjects are all natural and juridical persons, public or private, that dedicate themselves in a continuous and systematic manner to the development of any of the economic activities indicated in the preceding paragraph, whether in permanent or occasional form. For the calculation of this tax, the provision contained in Article 112 of the Regulation of the Law of Municipalities shall be applied. Taxpayers subject to the Industry, Commerce and Service tax must previously request an operating permit complying with the formalities established in the "Municipal Regulation that Institutionalizes and Regulates the Simplified Process for Obtaining an Operating Permit for a Business in the Central District." The failure to comply with this operating permit does not exempt the taxpayer from payment of this tax nor from the payment of corresponding fees for provision of services. This payment does NOT legalize the business and the taxpayer shall have 90 days to legalize their respective business and/or commerce. If due legalization is not effected, the AMDC shall proceed to close it. When a natural or juridical person wishes to put a business into operation where one already operated, the municipal office shall on its own initiative conduct a field inspection to verify that it is not the same owners.

Without prejudice to what is established in Articles 114 and 115 of the Regulation of the Law of Municipalities, the business or company that has its main office in the Municipality and has branches or agencies in different places of the Republic is obligated to declare and pay taxes only on the total income received or generated in the Central District, regardless of whether or not it has an establishment or offices in it. Companies or businesses whose main office is domiciled in other municipalities and that conduct sales of merchandise or services to companies, businesses or merchants with domicile in this municipality are obligated to present on the date stipulated by this Tax Plan an affidavit of these incomes. To verify such incomes, these taxpayers are obligated to provide all information required by the auditors of this Municipality, even in cases where accounting records are not kept in this Municipality.

Taxpayers subject to the Tax on Industry, Commerce and Service must present in the month of January of each year an Affidavit of the income obtained from their economic activities during the prior calendar year, said declaration shall serve as the basis for applying the respective rates per thousand and the sum of this result shall be the monthly tax to be paid during the year in which the declaration is presented. The income declared shall also serve as the basis for making the corresponding adjustments to the Affidavit of the immediately preceding year. The failure to present the declaration within the established period shall be sanctioned with a fine equivalent to one month's tax. Payment of this tax must be made within the first ten days of each month, with the exception of January which must be paid no later than February 10; to payments made after the established period, an annual interest surcharge shall be applied equal to the active rate that banks of the National Financial System use in their commercial operations, plus a surcharge of two percent (2%) annually calculated on balances in accordance with Article 109 of the Law of Municipalities.

In addition to the corresponding service fees, billiard halls shall pay monthly for each table an amount equivalent to one daily minimum wage corresponding to the commercial activity of the Municipality of the Central District. The manufacture and sale of products subject to price control by the State shall pay monthly their tax according to the volume of production, sales or annual income, according to the following scale: PER THOUSAND Up to L. 30,000,000.00 L. 0.10 From L. 30,000,000.01 onwards L. 0.01 The tax indicated in this article must be paid within the first ten (10) days of each month and without prejudice to the payment for income from other products that must be effected in accordance with what is established in Article 78 of the Law of Municipalities.

Taxpayers subject to the Tax on Industry, Commerce and Services, who incur in the suspension or closure of the business or any other modification related to the operation of the business, are obligated to present to the Management of Collection and Financial Control an Affidavit on these facts within thirty (30) days following said acts. Changes of domicile, transfer or change of business owner, change, modification or expansion of the economic activity of the business must be declared before executing said act. This declaration shall serve as the basis for updating the records and calculating, where applicable, the tax that corresponds to be paid and which shall be entered within ten (10) days following the date of presentation of the declaration. The failure to declare or its late presentation shall cause a fine equal to one month's tax and the failure to pay shall be sanctioned with an annual interest surcharge equal to the active rate that banks of the National Financial System use in their commercial operations, plus a surcharge of two percent (2%) annually calculated on monthly balances (Article 109 of the Law of Municipalities). In the case of alienation of the business to any title, the acquirer of the business shall be jointly and severally responsible for this obligation.

The following changes or modifications shall be presented before the Management of Citizen Services: 1. Change from alphanumeric RTN to numeric, presenting the following requirements: 1. Request addressed to the Management of Citizen Services requesting the change. 2. Photocopy of the new RTN. 3. Photocopy of the identity card of the legal representative. 4. Photocopy of the municipal solvency certificate of the legal representative. 2. Change of business name from individual merchant to business entity and vice versa: 1. Request addressed to the Management of Citizen Services requesting the change. 2. Photocopy of the new or modified public deed. 3. Sales volume form with the new data. 4. Photocopy of the RTN. 5. Photocopy of the identity card of the owner or legal representative. 6. Photocopy of the municipal solvency certificate of the owner or legal representative. 7. Authenticated power of attorney in case of not being the owner or legal representative. 3. Change of domicile or address: 1. Request addressed to the Management of Citizen Services requesting the change. 2. Compatibility approved by the Management of Construction Control, 4th floor. 3. Sales volume form with the new address. 4. Photocopy of the identity card of the business owner or legal representative if it is a business entity. 5. Photocopy of the municipal solvency certificate of the business owner or legal representative if it is a business entity. 6. Authenticated power of attorney in case of not being the owner or legal representative. 4. Change of business name: 1. Request addressed to the Management of Citizen Services requesting the change. 2. Sales volume form with the new business name. 3. Photocopy of the municipal solvency certificate of the business owner or legal representative if it is a business entity. 4. Copy of the public deed in case of being a business entity. 5. Authenticated power of attorney in case of not being the owner or legal representative. 5. Change of economic activity: 1. Request addressed to the Management of Citizen Services requesting the change. 2. Compatibility approved by the Management of Construction Control, 4th floor. 3. Sales volume form. 4. Photocopy of the identity card of the business owner or legal representative if it is a business entity. 5. Photocopy of the municipal solvency certificate of the business owner or legal representative if it is a business entity. 6. Copy of the original public deed. 7. Authenticated power of attorney in case of not being the owner or legal representative. 6. Change of legal representative: 1. Request addressed to the Management of Citizen Services requesting the change. 2. Accreditation of the new legal representative through a point of record if it is a non-profit entity, and deed of appointment if it is a business. 3. Photocopy of the identity card of the new legal representative. 4. Photocopy of the solvency of the new legal representative. 5. Sales volume form with the new legal representative. 6. Authenticated power of attorney in case of not being the owner or legal representative. 7. Change of owner or transfer of business: 1. Request addressed to the Management of Citizen Services requesting the change. 2. Fill out two sales volume forms (one for closure and one for opening). 3. Photocopy of identity card and solvency of the new owner. 4. If it is a business entity, copy of the RTN. 5. If it is a business entity, current public deed. 6. Transfer and authenticated original with copy of each one. 7. Authenticated power of attorney in case of not being the owner or legal representative.

The Personal Tax is a levy that falls on the annual income received by natural persons within this Municipality, whether or not they have domicile or residence therein. For purposes of this article, income is considered to be all kinds of yield, profit, gain, dividend, rent, interest, product, benefit, participation, salary, wage, daily wage, fee and in general any receipt in cash, in securities or in kind that modifies the patrimony of the taxpayer.

Every natural person shall pay annually a Personal Tax on their annual income received in this Municipality, which shall be computed by applying the rate contemplated in Article 77 of the Law of Municipalities, which is as follows: FROM L. TO L. L. PER THOUSAND 1.00 5,000.00 1.50 5,001.00 10,000.00 2.00 10,001.00 20,000.00 2.50 20,001.00 30,000.00 3.00 30,001.00 50,000.00 3.50 50,001.00 75,000.00 3.75 75,001.00 100,000.00 4.00 100,001.00 150,000.00 5.00 150,001.00 or more 5.25 MODALITY OF INDIVIDUAL OR PARTICULAR DECLARATION. Natural persons subject to this tax may declare in individual or particular form no later than April 30, the income received during the prior calendar year in the forms that the Municipality shall freely make available. MODALITY OF EMPLOYER DECLARATION. For purposes of payment under the source withholding system, employers must present the corresponding declaration no later than March 31. The fact that the taxpayer has not been provided with the form does not exempt them from the obligation to make the declaration, which in this case may be presented on plain paper with the requirements contained in the same form. REGARDING PAYMENTS. Natural persons who have declared under the modality of individual or particular declaration must pay the tax no later than May 31. Employers who have made withholdings under the source withholding system must, for payment purposes, pay these amounts to the municipality no later than April 15.

Exempt from payment of the Personal Tax are those contemplated in Article 77 of the Law and 101 of the Regulation.

SYSTEM OF SOURCE WITHHOLDING. For payment of the Personal Tax, the System of Source Withholding is established; consequently, all natural or juridical persons that pay or accredit income or earnings to natural persons within the municipal term are obligated as withholding agents of the personal tax, to deduct it proportionally in the first quarter of each year, but at the discretion of the employer it may be deducted in a single installment in the month of January of each year. Employers are also authorized to deduct this tax from their workers who for any cause are separated from their companies or businesses in any month of the year. SANCTIONS. The presentation of declarations outside the established deadlines shall cause a sanction of 10% of the tax to be paid. The failure to pay within the indicated periods shall be sanctioned with a fine equivalent to 25% of the value failed to be withheld and with 3% monthly on the amounts withheld and not paid within the indicated period, without prejudice to paying the amounts withheld or failed to be withheld. The amounts withheld by employers must be paid to the Municipality within fifteen days after they have been received. The non-compliance with the provisions of this article shall be sanctioned in accordance with what is established in the preceding article.

For purposes of modification of values based on the criteria indicated above, authorization is granted to the Management of Citizen Services to make modifications to the system, prior to issuance of a certificate by the Solid Waste Superintendence that clearly indicates the percentages to be modified and their justification.

Employers, whether natural or juridical persons, private or state entities, that have five or more permanent employees, are obligated to present no later than March 31 of each year in the form that the Municipal Office shall supply, a list of their employees with indication of salaries or wages and the amount withheld from each one of them; it is not a requirement to attach the affidavits of the employees from whom the withholding was made. The employee list form shall contain among other data, the following: Name, business name or corporate denomination, National Tax Registry, telephone, business or company address, withholding date and name of employer or legal representative and for each one of the employees, last names and names, identity card, position held, salaries or wages (gross income), tax deducted, credit, and total to be paid for each one of the employees. The fact of not having an employee list form does not exempt them from the obligation of its presentation. The failure to present the employee list within the indicated period shall be sanctioned with a fine of 10% of the total withheld and shall not be less than five thousand lempiras (L. 5,000.00).

No natural person domiciled or resident in the Municipality shall be considered solvent in the payment of the Municipal Personal Income Tax solely by virtue of having paid in another municipality, except for Deputies elected to the National Congress and public officials with national jurisdiction appointed constitutionally, who may make payment of this tax in the municipality of their habitual residence or where they exercise their functions at their election. Likewise, an adjustment may be made to the Income declarations made by taxpayers in those cases where by their profession, occupation, or standard of living it is evident that a presumptive income greater than that declared. All professional associations are obligated to present before January 30 of each year a list of their members with identification number, full name, age, residential address and telephone, and place of work. For the issuance of tax solvency cards for personal income tax, taxpayers subject to payment of this tax shall pay the amount of twenty-five lempiras (L25.00) for each card issued. Professionals are obligated to declare their personal income, including those that capture income in an unofficial manner, without prejudice to the declaration of other taxes.

The Tax on Extraction or Exploitation of Resources is that paid by natural or legal persons who extract or exploit quarries, such as minerals, hydrocarbons, forests and their derivatives; fish, hunt, or extract marine, lacustrine, or fluvial species in seas and lakes up to 200 meters in depth and in rivers. This tax is subject to the regulations and sanctions established in the Regulation of the Law of Municipalities. The Municipal Mayor or, failing that, the Vice Mayor is authorized to enter into agreements with the Executive Office for Mining Promotion of the Secretariat of Natural Resources and Environment, the Forest Conservation Institute (ICF), the Secretariat of Agriculture and Livestock, and other agencies of the Executive Branch for the purpose of making the collection of this tax viable.

To determine the tax referred to in this chapter, a rate of 1% of the commercial value of twenty lempiras per cubic meter (L.20.00m³) of extraction or exploitation of the resource within the municipal jurisdiction shall be applied, regardless of its center of transformation, storage, processing, or collection, or any other provision that the State may agree to, in accordance with Article 80, second paragraph of the Law of Municipalities. For the purpose of payment referred to in the preceding paragraph, it must be paid without including the value added that may result for said non-metallic mineral resource by virtue of its transformation or processing. In the case of metallic mining operations, in addition to the Tax on Industry, Commerce and Services, the Municipality shall be paid for each ton of material or processable waste, in Lempiras, the sum equivalent to fifty cents of the United States of America dollar, in accordance with the value established in the Customs Valuation Factor. In the case of limestone, the Tax on Extraction or Exploitation of Resources shall be paid starting from two thousand (2,000) metric tons. Non-compliance with this provision shall result in a fine equivalent to the calculation resulting from a rate of 1% of the commercial value of seventy-five lempiras per cubic meter (75).

The Environmental Management Unit of the Municipality shall authorize the extraction of these resources upon demonstration of the corresponding certificate, authorization, license, or concession from the State Secretariat in the Offices of Natural Resources and Environment, Executive Office for Mining Promotion, Forest Conservation Institute (ICF), and other agencies that according to the resource to be exploited. Whoever performs this activity without the corresponding authorization shall be subject to the sanctions contained in Article 158 of the Regulation of the Law of Municipalities.

The natural and legal person engaged in the production and commercialization of these resources is obligated to present to the Municipality within the first three months of the year the sworn declaration of production volume, income, or sales for the purpose of payment of the respective tax in accordance with the rate established in Article 19 of this Tax Plan and the Mining Law.

The Livestock Tax is that which is generated and paid by natural and legal persons at the Municipal Treasury or at authorized institutions of the National Banking System for the slaughter or sacrifice of livestock, as follows: 1. Per head of large livestock, one current daily minimum wage. 2. Per head of small livestock, half the current daily minimum wage. The wage to be applied is that of the lower scale established in the current Executive Decree and which corresponds to agricultural activity in the zone of the Central District. Additionally, the bill of sale issued by the Municipal Department of Justice of the municipality of origin must be exhibited. The administration and collection of this tax shall be the responsibility of the Finance and Administration Department through the Collection and Financial Control Management.

No natural or legal person, public or private, shall be exempt from the payment thereof, except by authorization or express provision of the Municipal Corporation, prior to a request by the interested party or directly at the request of any member of the Municipal Corporation.

The Public Services that the Municipality provides to the Community may be:

• a)

  Regular;

• b)

  Permanent; and c) Eventual. These services are determined based on the basic needs of the population with respect to hygiene, health, safety, water and sanitation, markets, cemeteries, road infrastructure and transportation, environment, education, culture, sports, urban planning, and in general those required for the fulfillment of civil and commercial acts. Regular services are: 1) Collection, handling, and final disposal of solid waste; 2) Fire service; 3) Public lighting; 4) Supply of electrical energy; 5) Environment; 6) Citizen security; 7) Drinking water; 8) Other similar services. Permanent services are: 1) Premises and facilities in public markets and commercial centers; 2) Use of public cemeteries; 3) Vehicle parking and parking meter services; 4) Use of premises for livestock slaughter and similar services; 5) Other similar services. Eventual services are: Authorization of accounting books and others;

  • 1)

    Authorization of business operation permits, licenses, and their renewals;

  • 2)

    Permits or licenses for construction and demolition of buildings, additions, modifications, and remodeling of buildings, subdivisions, urbanizations, and others;

  • 3)

    Authorization and permits for public spectacles, exhibitions, expositions, raffles, games of chance, and similar;

  • 4)

    Processing and celebration of civil marriages;

  • 5)

    Registration of vehicles and firearms, etc.;

  • 6)

    License of farmers, ranchers, slaughterers, and others;

  • 7)

    Preparation of surveys, topographic studies, and subdivisions for marginal neighborhoods and colonies intervened and recovered by the Municipality;

  • 8)

    Preparation of plans and designs of constructive elements;

  • 9)

    Inspection of constructions;

  • 10)

    Extension of certifications, certificates, and transcriptions of acts proper to the Mayor's Office;

  • 11)

    Cleaning of vacant lots;

  • 12)

    Occupation, opening, repair, circulation, and road maintenance including public sidewalks;

  • 13)

    Placement of signs and advertising billboards or authorization thereof;

  • 14)

    Use of public roads and spaces for aerial installations;

  • 15)

    Extension of permits for street vendors and sales booths;

  • 16)

    License for exploitation of natural products;

  • 17)

    Authorizations of livestock bills of sale;

  • 18)

    Registrations of livestock branding irons;

  • 19)

    Livestock transfer permits between Departments or Municipalities;

  • 20)

    Emergency response for natural or anthropogenic disasters or annual critical events such as droughts, forest fires, and floods;

  • 21)

    Processing of applications for qualification of exemption from municipal taxes and fees.

The municipal administration is authorized to collect the value of services through procedures it deems convenient, ensuring corresponding supervision and maximum recovery of its real cost.

The solid waste management services that include cleaning, collection, transport, and final disposal of solid waste are classified as:

• 1)

  Residential: These are services intended for dwelling houses and vacant lots. This is done to cover real operational costs, allocating 50% of the value that corresponds to the total cost of the solid waste management service. The collection of this solid waste management service shall be monthly and shall be calculated in direct relation to average electrical energy consumption and according to the classification by zone, nomenclature, and ranges that shall be established. The Municipality shall charge the rate established in the agreements issued for that purpose. The Finance and Administration Department is authorized, by delegation of the Municipal Corporation, to issue such agreements.

• 2)

  Non-residential: These are services that are charged with the payment of the Tax on Industry, Commerce and Service, and shall be in accordance with annual income by volume of sales, where this shall cover the remaining 50% of real operational costs. The collection of this service fee shall also be monthly, according to the following table: [TABLE: ANNUAL INCOME RANGE IN LEMPIRAS / MONTHLY RATE FOR SOLID WASTE MANAGEMENT IN LEMPIRAS / Up to 75,000.00 / 51.00 / From 75,000.01 to 150,000.00 / 76.00 / From 150,000.01 to 300,000.00 / 201.00 / From 300,000.01 to 600,000.00 / 301.00 / From 600,000.01 to 1,000,000.00 / 511.00 / From 1,000,000.01 to 2,000,000.00 / 1,120.00 / From 2,000,000.01 to 5,000,000.00 / 1,720.00 / From 5,000,000.01 to 10,000,000.00 / 2,416.00 / From 10,000,000.01 to 15,000,000.00 / 2,752.00 / From 15,000,000.01 to 20,000,000.00 / 3,520.00 / From 20,000,000.01 to 30,000,000.00 / 4,480.00 / From 30,000,000.01 to 40,000,000.00 / 5,328.00 / From 40,000,000.01 to 60,000,000.00 / 5,504.00 / From 60,000,000.01 to 100,000,000.00 / 6,400.00 / From 100,000,000.01 onwards / 9,600.00] For this purpose, the administration may design an effective monthly collection system starting from the month of January 2010, and in this manner proceed to make the corresponding collections for payment of the fee for solid waste collection, transport, and final disposal services to all taxpayers of the Central District. For companies or sectors that by their economic activity constitute large companies or large generators, or that have a service provided to them a greater number of times for solid waste management per week, such as supermarkets, restaurants, hotels, assembly plants, commercial centers, schools, universities, factories, hospitals, and other similar ones, qualified by the Administration as appropriate, an additional charge of up to one hundred percent (100%) of the rates established in the above table is established.

• 3)

  Other generators: In the case of state institutions or agencies, organizations exempt from the Real Property Tax, properties, dwellings, and other properties not recorded in the cadastral registry, and any other generator not included in the previous classifications, shall pay a fee according to the special agreement issued by delegation of the Finance and Administration Department. The Solid Waste Superintendency of the Mayor's Office of the Central District Municipality shall be responsible for the supervision of the classification, collection, transport, and final disposal of solid waste. Likewise, the handling of dangerous, biological, and highly contaminating solid waste at the municipal dump shall be the responsibility of the same Superintendency; the treatment at the municipal dump of such waste shall be done by means of special cells that guarantee that there is no damage to the environment. The collection for the provision of the final disposal service at the municipal dump made of dangerous, biological, and highly contaminating solid waste shall be according to the criteria established by the Municipal Corporation through the corresponding Ordinance or Agreement. The Solid Waste Superintendency is authorized to collaborate with the Municipal Department of Justice in matters relating to citation or service for infraction of the prohibitions contemplated in subsections a, b, c, d, e, and j of Article 42 of this Tax Plan. In sectors and/or businesses and institutions where solid waste collection service is not provided but street sweeping, transport, and final disposal of Solid Waste service is provided, the following rates shall be applied, according to the declaration presented: [TABLE: Residential Sectors / Commercial and Industrial Sectors / a-) for street sweeping and cleaning / 10% of the amount to pay / a-) for street sweeping and cleaning / 15% of the amount to pay / b-) for handling and final disposal at the municipal dump / 10% of the amount to pay / b-) for handling and final disposal at the municipal dump / 35% of the amount to pay] In determining the amounts to be paid for street sweeping, handling, transport, and final disposal at the municipal dump, the information provided by the Cadastre Management shall be used as the basis with respect to the zoning where the address, business, and industry is located. This information shall serve the Solid Waste Superintendency to determine the total amount to pay if the complete collection service were provided to them, according to the location zone. The Solid Waste Superintendency is instructed to report to the Collection and Financial Control Management about the neighborhoods where the collection service is provided and are not incorporated into the database, so that that Management may carry out the collection. A special account shall be created to sustain the operations of the Solid Waste Superintendency. Said account shall be maintained solely with funds from the payment of fines imposed for violating the prohibitions established in subsections a, b, c, d, e, and j of Article 42 of this Tax Plan. The Municipal Mayor is authorized to issue the agreements that develop the regulation for the collection of solid waste and the corresponding collections.

All businesses such as restaurants, commercial centers, stores, warehouses, dwellings, and others, have the obligation to keep their sidewalks or spaces clean and free of waste or garbage, having the obligation to know the days and schedule when the garbage collection truck passes.

The Municipality shall collect for the service of disposal of hospital solid waste, in a special pit within the sanitary landfill, at the rate of three thousand lempiras (L3,000.00) per metric ton deposited by contracting company, clinic, hospital, or laboratory, whether of public or private character. The Municipality may outsource the provision of this service following the most feasible procedures and mechanisms in accordance with the law.

The fire service is divided into Residential and Non-Residential or Commercial, the collection for this service shall be made as follows: a) Residential Service: shall be calculated by applying the factor of 0.0006 ten-thousandths to the cadastral value or declared value of the property, excluding real property subject to the general adjustment to which shall be applied the value resulting from the value calculated as fire service fee in the year 2009 plus an increase in the following percentages: [TABLE: CADASTRAL PROPERTY VALUE RANGE (LEMPIRAS) / PERCENTAGE INCREASE / 0-450,000 / 20% / 450,001-1,000,000 / 25% / 1,000,001 to 2,000,000 / 40% / 2,000,001 to 3,000,000 / 55% / 3,000,001 to 4,000,000 / 65% / 4,000,001 to 5,000,000 / 75% / 5,000,001 onwards / 100%] b) Non-Residential Service: shall be divided into non-residential service proper and Commercial: 1) Non-residential proper shall be calculated by applying the factor of 0.0006 ten-thousandths to the cadastral value or declared value of the property. 2) Commercial: Shall be collected jointly with the Tax on Industry, Commerce and Services, in accordance with the following rate: [TABLE: ANNUAL INCOME RANGE IN LEMPIRAS / MONTHLY RATE IN LEMPIRAS / Up to 50,000.00 / 30.00 / From 50,000.01 to 100,000.00 / 50.00 / From 100,000.01 to 300,000.00 / 60.00 / From 300,000.01 to 600,000.00 / 80.00 / From 600,000.01 to 1,000,000.00 / 100.00 / From 1,000,000.01 to 2,000,000.00 / 120.00 / From 2,000,000.01 to 5,000,000.00 / 140.00 / From 5,000,000.01 to 10,000,000.00 / 180.00 / From 10,000,000.01 to 15,000,000.00 / 220.00 / From 15,000,000.01 to 20,000,000.00 / 260.00 / From 20,000,000.01 to 30,000,000.00 / 300.00 / From 30,000,000.01 to 40,000,000.00 / 350.00 / From 40,000,000.01 to 60,000,000.00 / 400.00 / From 60,000,000.01 onwards / 450.00]

RATE FOR ENVIRONMENTAL CONSERVATION AND MANAGEMENT: The service of maintenance, conservation, restoration, and sustainable management of the environment is charged for the purpose of covering the cost of operations and investments executed by the Environmental Management Unit, so that this entity ensures its financial self-sustainability and may have the technical capacity necessary to address the environmental problems of the Central District Municipality. All natural or legal persons who perform industrial, commercial, or service activities, from the public or private sector, are subject to the Rate for Environmental Conservation and Management. This rate shall be collected monthly along with the Tax on Industries, Commerce and Service, in accordance with declared income and according to the following table: [TABLE: INCOME RANGE IN LEMPIRAS / RATE IN LEMPIRAS / Up to 50,000.00 / 10.00 / From 50,000.01 to 100,000.00 / 20.00 / From 100,000.01 to 300,000.00 / 30.00 / From 300,000.01 to 600,000.00 / 50.00 / From 600,000.01 to 1,000,000.00 / 80.00 / From 1,000,000.01 to 2,000,000.00 / 200.00 / From 2,000,000.01 to 5,000,000.00 / 250.00 / From 5,000,000.01 to 10,000,000.00 / 260.00 / From 10,000,000.01 to 15,000,000.00 / 280.00 / From 15,000,000.01 to 20,000,000.00 / 300.00 / From 20,000,000.01 to 30,000,000.00 / 350.00 / From 30,000,000.01 to 40,000,000.00 / 400.00 / From 40,000,000.01 to 60,000,000.00 / 500.00 / From 60,000,000.01 onwards / 600.00]

For the purpose of achieving the financial self-sustainability of the EMA and improving the quality of services provided by it, a special account shall be created where payments for all services provided by it shall be made.

In addition to the conservation and management of the environment, services will be provided for: DEBRIS FROM TREE PRUNING OR GARDEN ARRANGEMENT. The cleaning service, collection and final disposal of solid waste, which is carried out through compactors, shall not handle debris from tree pruning or those derived from garden arrangements. It is prohibited to dispose of such debris in vacant lots, riverbanks and river channels or other urban areas such as parks, medians, rights of way, sports fields, and others. Neighbors may immediately transport such debris to the Municipal Landfill; otherwise, they must inform the Municipal Cleanliness Superintendence of the existence thereof, so that it may proceed to collect it prior to payment established by it for this service. In those areas served by compactors, the Municipality shall collect ex officio by means of appropriate vehicles for such purposes, all debris resulting from tree pruning, when the existence of these has not been reported to the Municipal Cleanliness Superintendence and is ostensibly abandoned. In this case, the responsible neighbor shall pay seventy-five lempiras (L.75.00) per cubic meter, for the purpose of transporting the debris plus a fine of seven hundred fifty lempiras (L.750.00).

The following are prohibited in environmental matters:

• a)

  It is prohibited to deposit waste outside the Municipal Landfill. Every institution or company that produces it must submit a request to the Municipal Cleanliness Superintendence for the management and treatment of said waste. In the case of toxic and hazardous waste, it shall be the responsibility of the generator; improper management thereof shall be sanctioned based on the Instructive for the Management of Dangerous Hospital Waste approved by Municipal Agreement 027 of May 7, 2007. For depositing waste outside the Municipal Landfill, a fine of ten thousand lempiras (L. 10,000.00) per cubic meter of material shall be incurred for each infraction, and for not presenting the corresponding authorization for the use of the Municipal Landfill, the violator shall incur a fine of two thousand five hundred lempiras (L.2,500.00) each time, without prejudice to compliance with the provisions of the first part of this article.

• b)

  It is strictly prohibited to dump garbage, construction debris, dead animals, and any type of waste in public places, streets, parks, boulevards, riverbanks and river channels, rights of way, vacant lots, and others. Violation of this norm shall cause a fine of two thousand to five thousand lempiras (L.2,000.00 to L.5,000.00). The vehicle in which the garbage is transported shall be confiscated until the fine is paid, without prejudice to its removal or collection by the Municipality of the cost of removal.

• c)

  Persons in charge of transporting waste to the Municipal Landfill must do so taking into consideration measures such as covering the waste with a tarp to prevent it from scattering on the public road.

• d)

  The person caught in the street throwing garbage or waste on the public road shall be punished with a fine of five hundred lempiras (L.500.00). The Municipal sweeping service does not exempt each neighbor from the obligation to keep his sidewalk and green area in front of his residence clean.

• e)

  Commercial establishments, natural or legal persons must use mobile containers for the disposal of solid waste, which shall be placed on the sidewalks on the days and hours when the collection service is provided by the Municipality, and must be returned later to their usual location, so as not to obstruct the passage of pedestrians. Construction debris must be deposited at the Municipal Landfill, being the responsibility of the project executor; these cannot be stacked on the public road during the execution of the construction. Failure to comply with the foregoing shall be sanctioned with an initial fine of one thousand lempiras (L.1,000.00), the second time two thousand lempiras (L. 2,000.00), and subsequent violations five thousand lempiras (L.5,000.00), which amount shall be paid at the Municipal Treasury. All of the foregoing without prejudice to the pecuniary and civil sanctions established by the General Environmental Law and its Regulation and the Solid Waste Regulation that are of national application.

• f)

  All businesses such as fast food restaurants, restaurants, car wash centers, and others that the Environmental Management Unit considers, must have installed grease traps with an inspection window at a minimum, which must receive maintenance on a monthly basis. Likewise, in no way should waste extracted from the grease traps be discharged into the sanitary system network, but rather must be subjected to a treatment system and comply with the parameters established in the Technical Standard for the discharge of Wastewater to Receiving Bodies and Sanitary Sewerage, for proper disposal at the Municipal Landfill. Violation of the foregoing shall be sanctioned in the same manner as established in subsection e) of this article.

• g)

  All repair workshops and used oil generators (used oil) must be established in accordance with the land use designated in the Zoning plans and in compliance with the environmental measures established by the Environmental Management Unit. In case of selling the used oil to third parties, proof of its sale and final disposal must be obtained. In case of non-compliance with the foregoing and if its disposal causes an impact to the environment or human health, fines of L.500.00 (five hundred lempiras) to L.5,000.00 (five thousand lempiras) shall be applied, depending on the case, without prejudice to the cancellation of the operating permit.

• h)

  The accumulation of tires in conditions that may generate proliferation of vectors is prohibited. Violation of this provision shall be sanctioned with an initial fine of five hundred lempiras (L.500.00), the second time eight hundred lempiras (L.800.00), and subsequent violations from one thousand to five thousand lempiras (L. 1,000.00 to L.5,000.00), depending on the quantity of tires accumulated.

• i)

  Persons or companies that carry out burning of solid waste or hazardous materials within the jurisdiction of the Municipality of the Central District shall be subject to the following sanctions: FIRST OFFENSE Natural Person L. 500.00 Company or Business L.1,000.00 SECOND OFFENSE Natural Person L. 800.00 Company or Business L. 3,000.00 THIRD OFFENSE Natural Person L. 1,500.00 Company or Business L. 5,000.00 If the company or person burns toxic products and causes damage to third parties or the environment, it shall be responsible for remedying the problem caused, regardless of the expense incurred. All final disposal of waste must be carried out at the Municipal Landfill. The Environmental Management Unit, in coordination with the Municipal Department of Justice and the Special Environmental Prosecuting Office, shall be in charge of ensuring compliance with the provisions established above.

The Environmental Management Unit of the Municipality of the Central District shall provide weed cutting service ex officio or by complaint, with a charge according to the following table: Land Area in Square Rods Amount in Lempiras to be Paid for Clearance Service 0-300 square rods L. 2,000.00 301-500 square rods L. 2,500.00 501 square rods and onward L. 6.00 per each square rod It shall be through the Cadastral Management, Financial Management, Municipal Department of Justice, and the Environmental Management Unit that monitoring activities shall be developed for the cleaning of vacant lots by means of the database of property owners within the Central District.

No natural or legal person is authorized to cut trees in parks, boulevards, cemeteries, municipal lands, riverbanks and river beds, streets, avenues, sports fields, etc. (public or private lands) without authorization from the Environmental Management Unit. When a person needs to cut or prune a tree or shrub on his property within the urban area, he must submit a request and comply with the requirements established by the Environmental Management Unit, which will determine whether to authorize or deny the request. Documentation to be submitted for tree cutting or pruning request: 1. Cutting and pruning on private property due to damages: a. Copy of authenticated deed. b. Location sketch. c. Copy of identification. d. Photographs of the tree and the damage it is causing. 2. Cutting or pruning in green area: a. Signatures of neighbors with identification numbers. b. Location sketch. c. Copy of identification of the interested party. 3. Cutting or pruning of trees requested by institutions: a. Written note addressed to the manager of the Environmental Management Unit. b. Copy of identification of the institution's representative. c. Location sketch. 4. Tree cutting for construction: a. Copy of deed with authenticated copy if the Environmental Certification request is being processed at the same time. b. If he already has a Building License, submit the authenticated copy thereof. c. Plan where the tree is located within the construction. d. Location sketch. e. Copy of the property owner's identity card. f. Copy of receipt of payment of property tax. g. Whether natural or legal person, the name on the deed must match the name of the applicant; in case of lease or if there is a promise to sell contract, must submit a copy thereof, or purchase and sale contract or lease contract and the deed from which it derives. h. In case of projects where more than 20 trees must be cut, must submit a Discretionary Plan of Operations prepared by a professional in forest sciences. 5. Tree cutting for construction near the areas of: El Hatillo, El Picacho, La Tigra National Park, United Nations Park or Subcatchment of the Central District: a. Copy of deed with authenticated copy if the Environmental Certification request is being processed at the same time. b. Authenticated statement from AMITIGRA. c. Authenticated statement from United Nations Parks. d. Plan where the trees to be cut are identified. e. Location sketch. f. Copy of the property owner's identity card. g. Receipt of payment of property tax. h. Mark the trees to be cut. i. Whether natural or legal person, the name on the deed must match the name of the applicant; in case of lease or if there is a promise to sell contract, must submit a copy thereof, or purchase and sale contract or lease contract and the deed from which it derives. j. In case of being near any subcatchment, omit the statements from AMITIGRA and United Nations Park, submitting a copy of technical report issued by the Hydrographic Basins Department of the National Autonomous Water and Sewerage Service (SANAA). 6. Tree cutting for damages near the areas of El Hatillo, El Picacho, La Tigra National Park, United Nations Parks or Subcatchment of the Central District: a. Copy of deed with authenticated copy if the Environmental Certification request is being processed at the same time. b. Authenticated statement from AMITIGRA. c. Authenticated statement from United Nations Parks. d. Plan where the trees to be cut are identified. e. Location sketch. f. Copy of the property owner's identity card. g. Receipt of payment of property tax. h. Mark the trees to be cut. i. Whether company or natural person, the name on the deed must match the name of the applicant; in case of lease or if there is a promise to sell contract, must submit a copy thereof, or purchase and sale contract or lease contract and the deed from which it derives. j. In case of being near any subcatchment, omit the statements from AMITIGRA and United Nations Park, submitting a copy of technical report issued by the Hydrographic Basins Department of the National Autonomous Water and Sewerage Service (SANAA). 7. Cutting of trees at risk (all those trees that due to their poor vegetative condition or poor root anchoring may fall or drop their branches putting lives and property at risk): a. Photographs of the tree showing its condition. b. Copy of the interested party's identity card. If the request is authorized, the following fee shall be paid: TREE CUTTING TARIFF: FRUIT TREES L. 250.00 TIMBER TREES L. 800.00 TIMBER TREES OF PROTECTED SPECIES (according to ICF list) L. 5,500.00 HISTORIC OR CULTURALLY VALUABLE TREES L. 7,000.00 ORNAMENTAL L. 150.00 RISK L.100.00 Once the cutting of the tree or trees is approved, the interested party must proceed to sign a commitment deed at the Environmental Management Unit, in which he commits to plant within a determined time the number of trees indicated by the Environmental Management Unit, as well as the place where he must plant them or, failing that, the donation of materials or inputs necessary for plant production and maintenance of green areas, which must have a value equivalent to the percentage assigned according to the payment range for authorization of the cutting. Percentage of the Payment Range Donation Up to L. 1000 10% 1000-5000 20% 5000 and above 30% In case of non-compliance with this commitment deed, a fine of two thousand lempiras (L. 2,000.00) per tree not planted shall be applied.

TARIFF FOR TREE PRUNING: Pruning shall be understood as the maintenance of the width and height of the crown, thereby obtaining a general balance of the tree. The person must also submit a duly justified request to the Environmental Management Unit. FRUIT TREE L. 150.00 TIMBER TREE L. 300.00 TIMBER TREE OF PROTECTED SPECIES (according to ICF list) L. 1,000.00 HISTORIC OR CULTURALLY VALUABLE TREES L. 2,000.00 ORNAMENTAL L. 100.00 Root Pruning L. 100.00 RISK L.100.00

The validity of the Tree Cutting and/or Pruning Certificate shall be six months from the date of issuance thereof. In case the interested party requires an extension thereof, he must request it one week before its expiration and it shall be granted for two additional months, prior to payment of the amount established in this Revenue Plan for the issuance of certificates. After the expiration period of the cutting and/or pruning certificate that were not withdrawn, the interested party must initiate his procedure again and must previously pay a surcharge of 20% of the value of his permit.

The Environmental Management Unit shall provide the service of cutting or pruning solely and exclusively of trees at risk that are outside the power line and always and when it does not affect the normal planning of the Environmental Management Unit. In case of trees near power lines, the interested party must manage the cutting or pruning through the National Electrical Energy Company (ENEE) and/or the Fire Department.

The natural or legal person who without the authorization of the Environmental Management Unit proceeds to cut down trees or completely or partially destroys trees located in plazas, boulevards, streets, avenues, alleys, sports fields or on private land in neighborhoods, colonies, villages, cemeteries or other places, shall be sanctioned in the following manner: SANCTIONS FOR TREE CUTTING 1. FRUIT TREE L. 800.00 2. TIMBER TREE L. 2,000.00 3. TIMBER TREE OF PROTECTED SPECIES L. 9,000.00 4. HISTORIC OR CULTURALLY VALUABLE TREES L. 20,000.00 5. ORNAMENTAL L. 500.00 SANCTIONS FOR UNAUTHORIZED PRUNING 1. FRUIT TREE L. 500.00 2. TIMBER TREE L. 800.00 3. TIMBER TREE OF PROTECTED SPECIES L. 4,000.00 4. HISTORIC OR CULTURALLY VALUABLE TREES L. 5,000.00 5. ORNAMENTAL L. 300.00 Additionally, confiscation of the machinery and wood resulting from the action shall proceed and it shall be the Municipal Police together with the Environmental Management Unit personnel assigned for this function who shall effect said confiscation. The natural or legal person who without the authorization of the Environmental Management Unit cuts trees must sign a commitment deed with this unit where he commits to planting native species trees for each tree cut, or, failing that, the donation of materials or inputs necessary for plant production and maintenance of green areas, which must have a value equivalent to the percentage assigned according to the payment range of the cutting fine. Percentage of the Fine to be Paid or Donation Up to L. 1000 10% 1000-5000 20% 5000 and above 30% This without prejudice to the payment of the corresponding fine. The number of trees to be planted shall be established at the discretion of the Environmental Management Unit.

The natural or legal person who fells a tree on a public or private road accidentally, whether due to vehicular collision, construction, or any other activity, must pay the remediation costs, which shall include the repair of the damaged infrastructure as well as payment of the fine for tree cutting within thirty (30) working days. Non-compliance with the foregoing shall be sanctioned with a fine of 3 times the remediation cost in addition to the value of the sanction defined according to the type of tree affected.

Also subject to the foregoing sanctions are actions of poisoning (chemical, biological, or other), girdling of the trunk, and introduction of foreign bodies (wires, nails, rods, etc.) that damage the plant wholly or partially, which shall be determined by the Environmental Management Unit. In case any of the foregoing actions are proven, a sanction shall be applied, requiring payment of twice the value as established in the Article on sanctions for tree cutting of this Revenue Plan.

It is strictly prohibited to exceed the maximum permitted noise or sound levels, which shall be established according to zones and hours, in accordance with the Police Law and Civic Coexistence, which shall be regulated in the following manner: In Industrial Zone: a maximum of 85 decibels shall be permitted inside the facilities and 75 decibels outside thereof, within a radius of 100 meters around. In Commercial Zone, a maximum of 85 decibels shall be permitted inside the businesses and 50 decibels outside the facilities, within a radius of 1 kilometer around. In Residential or Habitual Zones: the maximum sound level permitted shall be 65 decibels inside residences and 50 decibels outside thereof, always within a radius of 100 meters around.

All night-time entertainment businesses and commercial establishments such as: bars, nightclubs, restaurants, cantinas, sports fields, nightclubs, etc., that in their operations are susceptible to producing sonic contamination, must respect the permissible sound levels of 85 decibels inside the establishment and 50 decibels outside thereof. Likewise, they must have their facilities equipped with acoustic coatings that isolate sound, so as not to disturb the peace and quiet of neighbors. Non-compliance with the foregoing shall be sanctioned with fines between five hundred (L.500.00) to five thousand lempiras (L. 5,000.00), and recurrence shall result in temporary and/or permanent closure of the business.

Public disturbances produced with sound equipment in vehicles or those who detonate firearms, explosives, or similar near night-time businesses, as well as in streets and residential zones, shall be sanctioned with a fine taking into account the severity of the violation and shall be imposed according to the following scale:

• a)

  Minor Offenses: with fines of L. 300.00 to L . 500.00.

• b)

  Serious Offenses of L. 501.00 to L.5,000.00.

• c)

  Suspension or revocation of the operating permit and closure of the business in accordance with the Police Law and Social Coexistence. Minor offenses are those arising from manifest responsibility, negligence or carelessness, and serious offenses are those arising from willful misconduct or are the result of recurrence or repetition.

Fines for violations in environmental matters shall be deposited in the municipal treasury and shall also result in the confiscation of sound equipment and weapons in possession of the violator.

Persons who in their homes disturb the peace, rest, and tranquility of their neighbors shall be sanctioned with fines of five hundred lempiras (L.500.00) to five thousand lempiras (L. 5,000.00), in accordance with Articles 132 and 133 of the Police Law and Social Coexistence, being cited by the Municipal Department of Justice, and in case of recurrence shall be sanctioned with double the fine, which may be charged to the corresponding property tax bill of the violator, in case he is the property owner.

The promotion of products or services in the vicinity of commercial businesses, warehouses, schools, educational institutions, clubs, supermarkets, churches, and institutions in general, using sound equipment and speakers that cause sonic pollution, shall be sanctioned with a fine from five hundred Lempiras (L.500.00) to five thousand Lempiras (L. 5,000.00).

Motor vehicles that cause excessive noise with horns and vehicles with loudspeakers that cause sonic pollution shall be imposed a sanction of five hundred Lempiras (L.500.00) to five thousand Lempiras (L.5,000.00) and in coordination with the Municipal Department of Justice the loudspeaker or sound equipment shall be confiscated until payment of the fine, excepting those that operate with a special permit for the promotion of activities of social benefit.

The UGA shall be responsible for issuing special permits for the placement of loudspeakers and sound equipment for the celebration of campaigns and special events, celebration of carnivals and any type of activities susceptible to producing sonic pollution; said permit shall be granted prior to the signing of a commitment agreement in which the applicant commits to respecting the established sound levels and to cleaning the area after the celebration of the event. Any business that wishes to promote its products using loudspeakers and sound equipment shall be responsible for obtaining its respective permit from the UGA. If it is demonstrated that the development of the promotion is causing sonic pollution, the permit shall be immediately suspended and the corresponding fine shall be applied.

In the areas located within the historic district of the city, the Historic District Management shall be responsible for issuing permits for the placement of loudspeakers and sound equipment for the development of any event.

Whoever wishes to carry out any of the activities described below shall pay for the special permit the following amounts:

• 1)

  For the celebration of carnivals, one thousand Lempiras (L.1,000.00) daily;

• 2)

  For the celebration of promotions of commercial establishments three hundred fifty Lempiras (L.350.00) for each day the event or activity is held. Said permits shall be granted for up to two consecutive days in a week and no more than six (6) hours per day, which may begin at eight in the morning (8:00 a.m.) and may not exceed two in the morning (2:00 a.m.).

The use of parks and green areas of the Central District shall not be authorized for the development of profit-making activities. Otherwise it shall be fined with an amount of five thousand Lempiras (L. 5,000.00).

CATEGORIZATION. In compliance with Decree 181-2007, the AMDC assumes the environmental evaluation processes under the following categories: A. Category 1: for projects that must only report their activities, receiving in recognition a registration certificate. B. Category 2: for projects with predictable impacts that must sign a standardized contract prior to their environmental authorization. Those established in Article 1 of the aforementioned decree are excepted. Authorizations shall be granted according to the following Municipal Categorization Table: Municipal Categorization Table: Project Type Criterion Category 1 2 1 1.. Chemical Industry. Soaps, detergents and other cleaning products manufactured through industrial process Size P Packaging or handling of Pharmaceutical Products Size P M Manufacturing or processing of Pharmaceutical Products Size P Cosmetics Industry Size P / M G Distilleries Size P Inks Size P Solvents or thinners Size P Adhesives or similar (water-based) Size P M / G Adhesives or similar (organic-based) Size P Industrial Gases Size P Agrochemicals organic fertilizers Size M G Agrochemicals inorganic fertilizers Size P M Agrochemicals biocide Packaging process Accumulator Factories Size P Battery Factories Size P Manufacturing of plastic products, rubber and similar Size P M/G Tanneries Size P Synthesis of organic products Size P Galvanoplastic processes, except for gold or silver Size P / M Manufacturing of powder and explosives Size P Production and storage of pyrotechnic products Size X Paper, cardboard and derivative manufacturing Size P Industrial laboratories for chemical and biological analysis All X 2. Food Industry Processors of dairy products Lt Milk / day >= 1,000 < 10,000 >= 10,000 < 50,000 Processors of meat and derivatives Size P Coffee roasters and derivatives Size P / M Breweries P / M Manufacturing of non-alcoholic beverages and similar Size P M / G Water bottling plants and ice manufacturing Size P M / G Concentrated feed for animals Size X Shellfish packers Size P Food processors and packagers Size P M Processing and packaging of spices Size M G Preparation of Confectionery, churros, snacks, etc. Size P Flour and pasta manufacturing for human consumption Size P M/G Salt processing Size M G Bakeries, Restaurants and Fast Food Size X Slaughterhouses Heads/week <=5 >5, <=20 3. Agricultural Sector Crops with cutting-edge technology Ha < 15 >= 15, <100 Crops with medium technology Ha < 50 >= 50, <100 Crops with low technology Ha > 50 Grain dryers type of fuel electrical fossil/Biomass Ecological coffee benefits QQ / week <500 > 500 Traditional coffee benefits QQ / week <= 800 Rural agricultural product collection centers All X Irrigation projects, superficial or by gravity Ha > 10, <= 50 Irrigation projects, pressurized (piping) Ha > 10, <= 50 > 50, <= 100 Irrigation projects, reconversion and rehabilitation Ha > 20 Extraction of solar salt Ha > 1, <= 10 > 10 Extraction of cooked salt Ha <= 5 4. Livestock Sector Bovine, equine, ovine and similar farms Head > 100, <= 1,000 Swine farms Pigs > 20, <= 100 Poultry farms Birds >=1,200, <= 2,500 > 2,500, <= 5,000 Fish farming activity on land Ha > 1, <= 5 > 5, <= 10 Fish farming activity in cages Ha <= 0.25 Shrimp cultivation Ha <= 5 5. Forest Sector Industrial transformation of wood (includes elaboration of broom sticks, stakes, furniture, fences, profiles, moldings, doors windows, fish traps and others) Pt/day >=1000 Charcoal production kg/month >=10,000 Treatment and preservation of wood (by physical, chemical or mechanical systems) Size all Deposit and sizing of wood Size All Seed extraction plant kg/month >=1000 Reforestation and afforestation plans with introduced forest species Hectares >=100 Introduction of forest species in Vitro Bulbs >=1000 6. Energy Sector Hydroelectric Mw. >=0.5,<=1 >1,<=3 Wind Mw. >=5 Photovoltaic Mw. >=0.1 Biomass Origin >=3 Geothermal Mw. >=5 Thermal plants (by fossil combustion) Mw. > 0.5, <= 1 Electrical substations Size All Transmission lines Location populated centers Hydrocarbon Storage Gal. >= 1,000 <=6000 <6000, <= 20,000 Hydrocarbon service stations All 7. Hospitality and Tourism Hotels and other accommodation centers No. of rooms/ Location >=10, <50 >=50 Museums and Theaters Size All Permanent amusement parks Ha <=5 >5, <10 Mechanized cable cars Size All Golf Courses Ha <=20 >20 Sport Fishing Size All Sport Hunting (mammals and birds) Size All Other Centers and Ecotourism Activities Location Intervened Areas Non-intervened Areas 8. Hospital Sector CESAR Size All CESAMO Size All Medical Clinics Type of Service Outpatient Consultation Emergency Service and Outpatient Consultation Non-hospital clinical and pathological laboratories Labor personnel <= 10 Non-hospital dental clinics Size All Cadaver preparation centers Size All Non-hospital blood banks Size All Private radiodiagnostic services Size All Veterinary clinics Type of Service Outpatient Consultation and Emergencies Hospitalization 9. Infrastructure Sector Secondary roads, highways, airports, railways, waterways and related structures Type of Operation maintenance rehabilitation improvement Streets, viaducts and penetration roads in previously intervened areas Type of Operation rehabilitation improvement construction reconstruction Dams and Reservoirs Capacity in cubic meters >= 500 < 2,000 >= 2,000, < 50,000 Aqueducts and Sewerage Users >= 1000, < 5000 >= 5,000 Encasing of waterways Location urban zone Sports complexes Ha >=2, <=5 >5, <=10 Subdivisions, urbanizations, condominiums and housing complexes in areas where no land use plan exists Number of dwellings From 1 to 5 From 6 to 20 Subdivisions, urbanizations, condominiums and housing complexes in areas with land use planning or municipal certification of land use Number of dwellings From 20 to 50 From 51 to 200 Markets, collection centers for storage and distribution of food, mass transportation systems and terminals for land transportation of passengers and cargo when no land use planning and zoning plan exists m2 of land use < 10,000 Markets, collection centers for storage and distribution of food, mass transportation systems and terminals for land transportation of passengers and cargo in areas with land use planning or municipal certification of land use Square meters of land use >= 10,000, < 30,000 >= 30,000 Construction of Buildings for industrial use m2 of land use >= 500, < 3,000 >= 3,000, < 10,000 Construction of Buildings for commercial, educational, social use, etc. m2 of land use > 2000 < 5,000 >= 5,000 Fords, bridge boxes, culverts as government projects Size All Other buildings and infrastructure when no land use planning or certification exists Square meters of land use >= 500 < 5,000 >= 5,000 < 10,000 11. Manufacturers Clothing and textile accessory factories Size P M / G Paper, cardboard and derivative transformation Size P M / G Footwear manufacturing Size M G Home appliance manufacturing Size M G Manufacturing of tiles, blocks, sheets and other cement derivatives Size M Manufacturing of metal products Size M G Printing plants Size P / M G Furniture and other wood accessory manufacturing Size M / G Plastic product manufacturing Size P M / G Stone cutting, carving and finishing Size P M Glass and derivative manufacturing All x Lime and/or plaster manufacturing Ton / year ≥50,<70 ≥70,<100 Manufacturing of cigars and cigarettes Size M G 12. Service Sector Dry cleaning laundries All X Domestic fumigation services All X Refrigeration workshops All M G Automotive maintenance workshops Size M G Vehicle washing and lubrication centers Size P M / G Photographic laboratories Size P M / G Antennas for transmission of electromagnetic waves for communication All X 13. Waste Management Oxidation ponds Size All Other physical biological treatment plants M3/day > 50 Physical chemical treatment plants M3/day > 12, <= 50 > 50, <= 100 Municipal sanitary landfills Population to serve < 20,000 Private sanitary landfill (non-special waste) Size All Incineration of non-special waste Ton / day > 1 Paper (bleached) and plastic recycling plants Ton / day >= 0.1, <= 1.5 > 1.5 14. Biodiversity Sector Zoos (vertebrates) Species CITES II and III Animal farms Non-commercial operation Fauna rescue centers Size All Private fauna collections Non-domestic Species CITES II and III Aquariums Size All Any other project not included in the above list, but which in the opinion of the UGA is susceptible to degrading or contaminating the environment shall be required to request its environmental authorization and when applicable must carry out its corresponding procedure in the Ministry of Natural Resources and Environment (SERNA). The size criterion in the industry and services sector refers to the number of employees, understood as follows: P = Small (between 5 and 20 employees), M = Medium (between 21 and 100 employees), G = Large (more than 100 employees). The projects referred to in the list in the agricultural, livestock and forest sectors are understood to be developed in areas suitable for this activity, identified by a territorial ordering plan or in ecologically intervened properties, according to technical opinion. The Categorization referred to in this list does not substitute the sound technical judgment of environmental analysts; when so determined by the competent authorities a project may move up from its entry category, requiring the proponent for the corresponding actions. When the same project includes two or more activities defined in this list, the categorization of the project shall be determined by the activity that is included in the higher category. Size of enterprises: P= SMALL; M= MEDIUM; G= LARGE X: SIZE OF THE ENTERPRISE DOES NOT MATTER (ALL) M3: CUBIC METERS M2: SQUARE METERS *PT.: BOARD FEET; Ton: Tons Mw: Megawatts; Ha: Hectares Gal: Gallons; QQ: Quintals HA: Hectares; Lt.: Liters

Environmental Audits: Natural or legal persons who have begun operations without an environmental permit and who belong to categories 1 and 2 stipulated in the municipal categorization table shall request from the UGA an Environmental Audit to continue their operations and thereby guarantee compliance with environmental legislation.

The following requirements shall be handled for the environmental evaluation processes for Category 1, 2 projects and Environmental Audits, renewal, expansion and/or remodeling: A. CATEGORY 1 PROJECTS Publish in the newspaper of greatest circulation a Notice of Project Entry with the Environmental Management Unit of the AMDC, so that any natural or legal person may proceed to file a complaint or claim with the UGA in the time estimated for processing.

• •

  The application request must be presented by a legal representative on white paper letter size. (Format C1)

• •

  Technical Memorandum (2 to 5 pages attaching process diagrams and schematic plans, both in letter or legal size, when applicable).

• •

  Project location plan (urban areas) for rural areas the location of the project in a 1:50,000 map or in any other graphic medium that shows us the characteristics of the project's surroundings is required.

• •

  Construction Site Plan, Site Plan that reflects the land and the area to be built, authorized facades by a Civil Engineer with corresponding seal and signature.

• •

  Original Compatibility Certificate issued by the Construction Control Management. Municipal Solvency and Payment of Real Property.

• •

  Corporate formation document, individual merchant or legal personality document.

• •

  Power of Attorney document from the project owner to the legal representative.

• •

  Property title of the place where the project will be developed duly stamped and registered, in case of rental present a copy of the deed from which the contract originates and a copy of the contract.

• •

  Photocopies of deeds or any other type of document must be presented authenticated. Certification of authorization of the provision of basic services (SANAA, ENEE and Municipal Cleanliness Superintendency).

• •

  In case of being near any sub-basin of the Central District present technical report issued by the Department of Water Basins of SANAA.

• •

  Authenticated Certificates of National Parks, AMITIGRA and Forest Conservation Institute, in case of construction in El Picacho, El Hatillo and surrounding areas.

• •

  Sworn declaration by the proponent assuring that all information presented is true.

• •

  Project Investment Amount. Other items requested by the UGA. Observations: In case tree cutting is necessary, an application must be presented before the UGA. In case of projects where more than 20 trees must be cut, a facultative Operations Plan must be presented prepared by a professional in forest sciences. B. CATEGORY 2 PROJECTS Publish in the newspaper of greatest circulation a Notice of Project Entry with the Environmental Management Unit of the AMDC, so that any natural or legal person may proceed to file a complaint or claim with the UGA in the time estimated for processing. The application request must be presented by a legal representative on white paper letter size. (Format C2). Qualitative Environmental Diagnosis, prepared by experts in environmental matters and duly registered with the AMDC. (Format DAC). Corporate formation document, individual merchant or legal personality document. Power of Attorney document from the project owner to the legal representative. Property title of the place where the project will be developed duly stamped and registered, in case of rental present a copy of the deed from which the contract originates and a copy of the contract. Original Compatibility Certificate issued by the Construction Control Management. Certification of authorization of the provision of basic services (SANAA, ENEE and Municipal Cleanliness Superintendency). Photocopies of deeds or any other type of document must be presented authenticated. Sworn Declaration by the proponent assuring that all information presented is true. In case of being near any sub-basin of the Central District present technical report issued by the Department of Water Basins of SANAA. Authenticated Certificates of National Parks, AMITIGRA and Forest Conservation Institute, in case of construction in El Picacho, El Hatillo and surrounding areas. Municipal Solvency and Receipt of Real Property Tax Payment. Other items requested by the UGA. Observations: In case tree cutting is necessary, an application must be presented before the UGA. In case of projects where more than 20 trees must be cut, a facultative Operations Plan must be presented prepared by a professional in forest sciences. C. ENVIRONMENTAL AUDITS:

• •

  The application request must be presented by a legal representative on white paper letter size. (Format AA).

• •

  Technical Memorandum for Environmental Audits, prepared by experts in environmental matters and duly registered with the AMDC. (Format MTAA).

• •

  Corporate formation document, individual merchant or legal personality document.

• •

  Power of Attorney document from the project owner to the legal representative.

• •

  Property title of the place where the project will be developed duly stamped and registered, in case of rental present a copy of the deed from which the contract originates and a copy of the contract.

• •

  Original Compatibility Certificate issued by the Construction Control Management.

• •

  Photocopies of deeds or any other type of document must be presented authenticated.

• •

  Sworn Declaration by the proponent assuring that all information presented is true.

• •

  In case of being near any sub-basin of the Central District present technical report issued by the Department of Water Basins of SANAA.

• •

  Authenticated Certificates of National Parks, AMITIGRA and Forest Conservation Institute, in case of construction in El Picacho, El Hatillo and surrounding areas.

• •

  Other items requested by the UGA. D. RENEWAL: The application request must be presented by a legal representative on white paper letter size. (Format RA). Power of Attorney document from the project owner to the legal representative. Sworn Declaration by the proponent assuring that all information presented is true. Photocopies of documents must be presented authenticated. Present a report on compliance with mitigation measures prepared no more than three months before the submission of the renewal request. Present a copy of certification issued by the UGA that accredits that the Project has complied with the measures established in the controls and monitoring. Other items requested by the UGA. E. EXPANSION AND/OR REMODELING: Publish in Major Circulation Newspaper a Notice of Project Entry with the Environmental Management Unit of the AMDC, so that any natural or legal person may proceed to file a complaint or claim with the UGA in the time estimated for processing. The application request must be presented by a legal representative on white paper letter size. (Format RA). Power of Attorney document from the project owner to the legal representative. Sworn Declaration by the proponent assuring that all information presented is true. Photocopies of documents must be presented authenticated. Present a report on compliance with mitigation measures prepared no more than three months before the submission of the renewal request. Present a copy of certification issued by the UGA that accredits that the Project has complied with the measures established in the controls and monitoring. Original Compatibility Certificate issued by the Construction Control Management. Technical Memorandum of the expansion and/or remodeling (2 to 5 pages. Attach process diagrams and schematic plans, both in letter or legal size, when applicable). In Category 1 projects. Qualitative Environmental Diagnosis, of the expansion and/or remodeling, prepared by experts in environmental matters and duly registered with the AMDC. (Format DAC). In Category 2 projects. Technical Memorandum for Environmental Audits, of the expansion and/or remodeling, prepared by experts in environmental matters and duly registered with the AMDC. (Format MTAA). In case of projects subject to Environmental Audits. Construction Site Plan, which reflects the land and the area to be built, authorized facades by a Civil Engineer with corresponding seal and signature. Other items requested by the UGA. Observations: In case tree cutting is necessary, an application must be presented before the UGA. In case of projects where more than 20 trees must be cut, a Facultative Operations Plan must be presented prepared by a professional in forest sciences.

A fee shall be charged for the environmental evaluation processes for the execution of projects, industrial installations or any other public or private activity intended to be developed delegated to the Municipality of the Central District through Decree 181-2007, through the following tiered rate: AMOUNT OF INVESTMENT REALIZED RATE

• 1)

  For the first 200,000.00 1.00%

• 2)

  For fraction over 200,001.00 Lempiras up to 1,000,000.00 Lempiras. 0.50%

• 3)

  For fraction over 1,000,001.00 Lempiras up to 20,000,000.00 Lempiras. 0.05%

• 4)

  For fraction over 20,000,001.00 Lempiras. 0.02% Payment shall be made to the banks of the National Financial System authorized, prior to the issuance of the respective certificate.

Companies that have begun operations without an environmental permit and that belong to categories 1 and 2 stipulated in the municipal categorization table shall request from the UGA an Environmental Audit to continue their operations and thereby guarantee compliance with environmental legislation. The cost of the audit shall be calculated according to the amount of investment using the table in the previous article as a reference. This without prejudice to the payment of a fine which shall be equivalent to 5% of the permit amount for each year after the start of its operation.

Charges for studies, reports, environmental analyses, project status certificates requested by the Ministry of Natural Resources and Environment, controls and monitoring of mitigation measures for businesses or projects carried out by the UGA shall be subject to the payment rate according to the following table: AMOUNT OF INVESTMENT REALIZED RATE

• 1)

  For the first 200,000.00 0.250%

• 2)

  For fraction over 200,000.00 Lempiras up to 1,000,000.00 Lempiras. 0.125%

• 3)

  For fraction over 1,000,000.00 Lempiras up to 20,000,000.00 Lempiras. 0.0125%

• 4)

  For fraction over 20,000,000.00 Lempiras. 0.005% Payment shall be made to the banks of the National Financial System authorized, prior to the issuance of the respective certificate. In case operating projects do not comply with the mitigation measures established by the UGA, it may revoke the environmental permit issued after notifying the non-compliance and granting a period of three months for compliance with the measures.

It is established within the environmental measures of the Mitigation Measures Contracts of the projects the renovation and maintenance of green areas on sidewalks, turnarounds and medians of the area close to be intervened, shall be presented to the UGA so that the area to which maintenance will be given for compliance with said measure shall be credited, which shall extend an annual Certificate. For the accreditation of renovation and maintenance work carried out the UGA shall assign technical personnel which shall give through technical reports of maintenance supervision.

The expansion and/or remodeling of projects shall have a cost according to the investment amount of the expansion and/or remodeling calculated according to the table in Article 55 of this fee plan.

The validity of the Environmental Registration Certificates, Environmental Authorization and Environmental Audit shall be three (3) years. The renewal of the aforementioned permits must be requested four (4) months in advance of their expiration, for which a payment of 25% of the value of the permit must be made. The cost of renewal for projects that had expansion and/or remodeling shall pay 25% of the value of their original permit plus 25% of the value of their expansion and/or remodeling permit.

Any project that is subject to an environmental registration certificate, environmental authorization, or environmental audit must be submitted obligatorily to inspection and monitoring by the UGA one year after obtaining its environmental permit; after this period it will have a validity of two years. Said procedure shall be a requirement for the renewal of its respective operational and/or construction permit.

The Municipal Registry of Environmental Service Providers shall be administered by the UGA of the AMDC based on the Procedures Manual for the Registry of Environmental Service Providers. The UGA shall open a file for each of the professionals, companies, or laboratories that submit to the registration process. The file shall contain all requested information. Likewise, it shall issue certificates and identification cards that will be delivered to the (PSA) once compliance with the requirements has been verified.

Registration in the Municipal Registry of Environmental Service Providers is conducted in the offices of the Environmental Management Unit. Only those registered in said Municipal Registry shall be accepted as PSA.

At the request of the Construction Control Management, the Environmental Certificate for minor Category 1 projects shall conduct the procedure at the UGA. The requirements for processing the Environmental Certificate before the UGA of the AMDC are the following: Sketch of the location of the site with respect to the zone. Copy of property document (in case of rental, present lease contract and public deed from which it originates) duly authenticated. Copy of deed of individual merchant or company or legal personality when applicable duly authenticated. Compatibility Certificate issued by the Construction Control Management of the AMDC (original). Certificate from the Honduran Institute of Anthropology and History (in case it is located within the historic district). Copy of construction plans (general plan, plan of each level, sections, and elevations) for the activity to be carried out showing the total area of the land and construction area signed and sealed by Engineer or Architect. Descriptive technical report (showing the total area, construction area, activities to be carried out on the land with their materials). Certificates from National Parks, AMITIGRA, and the Forest Conservation Institute authenticated, in case of construction in El Picacho and El Hatillo and surrounding areas. In case of proximity to any sub-basin of the Central District, present technical report extended by the Department of Watersheds of the National Autonomous Service of Aqueducts and Sewers (SANAA). In case tree cutting is necessary, present request using the respective format for said procedure.

The placement of advertising banners in a horizontal manner crossing both ends of the streets shall not be permitted, in view that they can cause visual pollution and reduce driver visibility. The violation of the above stipulated shall be sanctioned with fines of two thousand Lempiras (L.2,000.00) for each banner placed, without prejudice to the confiscation and final disposition thereof. The Construction Control Management shall be responsible for monitoring compliance with this provision.

A charge of seventy-five Lempiras (L.75.00) per night per occupied room shall be collected as Contribution to the Tourist Development of the Capital from guests in hotels in the Central District of first, second, and third category. These shall be subject to periodic audits and whose collections must be remitted within the first ten days of the following month in which the collection took place, in the institutions of the national banking system in authorized special accounts. The obligated hotels shall modify their invoices to include this contribution. The funds collected shall be destined to the strengthening of the Tourist Police, Tourist Information and Assistance Center, Training of personnel and employees of tourist centers, and any other program or project defined by the Tourism Management and may be coordinated with the National Chamber of Tourism.

OBJECTIVES AND PURPOSES OF THE HISTORIC CENTER. The Historic Center Management has as its objective the defense, conservation, rescue, protection, and investigation of the assets that constitute the Cultural Heritage of the Historic Center of the Central District, in order to permit a fair, timely, and efficient application by the Municipal Mayor's Office of the Central District and other entities interested in the faculties that the Law grants them.

DELIMITATION OF THE HISTORIC CENTER. The limits described in Article One of Agreement Number 527 dated December 20, 1994, issued by the Presidency of the Republic through the Secretariat of Culture and Tourism, denominated Declaratory Agreement of National Monuments of the Historic Center of the Central District and surrounding areas.

It is the responsibility of the Municipal Mayor's Office of the Central District through the Historic Center Management to favorably or unfavorably rule on interventions for the construction, remodeling, and demolition of inventoried and non-inventoried buildings within sectors 01, 02, and 06, which comprise the Historic Center of the Central District. Prior to the execution of any conservation work, restoration, or intervention of inventoried buildings; works of construction, remodeling, or demolition of real estate, as well as the opening of businesses and renewal of operating permits, located within the limits of the so-called HISTORIC CENTER OF THE CENTRAL DISTRICT, the owner or legal representative of the respective real estate or business shall present themselves at the Historic Center Management with the respective municipal cadastral key of the lot where they intend to act, to learn the guidelines that will govern said work and not incur in cases that violate the Regulations for the Management of the Historic Center of the Central District. Once the above step has been carried out, the pertinent authorization case shall be identified in accordance with the classification of the property in the INVENTORY OF CULTURAL HERITAGE OF THE NATION and the guidelines shall be given for each situation. These authorizations shall be extended once the Historic Center Management issues the Project Approval Opinion regarding the architectural design of the real estate, integration with the context, and compatibility of land use according to current zoning. The Construction Control Management and the Citizen Assistance Management are the entities responsible for the approval and issuance of the respective permits, whose final ruling will depend on the guidelines for each case, from this point the interested party may begin the design and/or programming work of the project.

The types of authorizations that must be issued by the Historic Center Management, prior to the corresponding municipal permits, are the following: 1) Authorization for intervention of inventoried and non-inventoried buildings properties 2) Special Authorizations 3) Authorization for demolition of a Building 4) Authorization for installation of Signs 5) Compatibility Authorization (opening and renewal) 6) Authorization for use of public spaces 7) Authorization for use of audio advertising 8) Authorization to paint façades of properties.

Any construction, modification, enlargement, repair, or remodeling of any building within the Historic Center shall be ruled favorable or unfavorably by the Historic Center Management and the permit shall be issued by the Construction Control Management. These Administrative Acts constitute an indispensable requirement to obtain the Construction, Intervention, and Demolition Permit granted by the Construction Control Management. Any intervention without authorization shall pay a fine of: Inventoried property Lps.10,000, without prejudice to other fines. Having to comply with the Guidelines according to the Historic Center Management Regulations. Non-inventoried property Lps.3,000; without prejudice to other fines. Having to comply with the Guidelines according to the Historic Center Management Regulations.

For each demolition of buildings carried out within the Historic Center, the procedure shall begin at the Historic Center Management, which shall rule favorable or unfavorably on it, in accordance with the Honduran Institute of Anthropology and History, the Construction Control Management being the entity responsible for issuing the respective permits, paying for their issuance the following:

• A)

  Three hundred (L. 300.00) for areas smaller than 250 square meters.

• B)

  Eight hundred (L. 800.00) for areas from 250 to 500 square meters.

• C)

  One thousand five hundred (L. 1,500.00) for areas larger than 500 square meters. Lack of Construction Permit shall cause a fine of six percent (6%) on the cadastral value of the property to be demolished. When a demolition is carried out by order of the Municipal Corporation or another authority, the amount established in this Revenue Plan shall be charged, imputable to the property owner, plus added costs.

The exterior façades of inventoried and non-inventoried buildings within sectors 01, 02, and 06 that comprise the Historic Center of the Central District shall be painted uniformly with colors authorized by the Historic Center Management of the Central District, and may not be painted with colors outside the color palette authorized by the Municipal Mayor's Office of the Central District and the Honduran Institute of Anthropology and History, even if they belong to different owners or are rented by different persons, being strictly forbidden to divide the properties with different colors. A period of 15 days shall be granted after the first notice to paint the façades of businesses and homes within the Historic Center, being strictly forbidden to cover with paint the characteristic carved stone architectural elements of our city such as: balconies, cornices, arch moldings in openings, window sills, jambs, brackets, portals, fluted columns, keystones, etc., as well as to paint advertising on the metal shutters of doors and windows which shall be painted entirely in a manner that integrates with the color of the building. Non-compliance with this provision shall result in a fine of five thousand Lempiras exactly (L. 5,000.00), plus the setting of a deadline to correct the painted façade; paying said fine at the Historic Center Management. Authorization for painting of façades shall be extended at no cost, with the Historic Center Management providing advice in the choice of colors according to the architectural typology of the property and using the colors established in the color palette for the Historic Center.

The Historic Center Management shall be responsible for the regulation of all advertising within the Historic Center of the Central District and shall determine the guidelines and rule on requests for permits for the installation of signs, announcements, and advertising of any type, which it shall grant or deny directly to the interested party in accordance with the Regulations for the Management of the Historic Center, where the applicant is obligated to know the guidelines for the installation of signs or advertising announcements prior to their manufacture, for which reason they shall address themselves to the Historic Center Management to receive the corresponding advice, and once the design of the sign or advertising announcement is approved, the final processing of the request shall be given at the Historic Center Management for which they shall pay a one-time fee for the installation permit and annually for the renewal of the permit when applicable. For the authorization issued at the Historic Center Management, the amount of three hundred lempiras (Lps.300) per square meter shall be charged. Non-compliance with the guidelines for signs within the Historic Center shall cause a fine according to the Historic Center assessment table. As well as the obligation of immediate removal thereof. TYPE OF SIGN VALUE PER m2 Luminous Sign 1 side L. 1,950.00 Luminous Sign 2 sides L. 2,100.00 Adhered or Microperforated Banners L. 475.00 Individual Letters L. 3,000.00 Painted Metal Sign L. 750.00 Wooden Sign L.1,000.00 The type of sign not mentioned in the above table shall be charged based on a fixed rate of (L.3,000.00) three thousand lempiras exactly.

The Construction Control Management, with the assistance of the Historic Center Management, shall be responsible for issuing the Compatibility Certificate for establishments or businesses that require obtaining operating permits within the Historic Center. Said certificate shall be issued based on the current urban zoning.

It is the faculty of the Citizen Services Management in special cases to consider for purposes of zoning and land use prior to the issuance of the operating permit, any authorization or recognition issued by the Municipality through its authorized departments.

When the Historic Center Management considers it inappropriate to renew the operating permit of a business operating in the historic center, it shall inform the Citizen Services Management in the month of December of the causes or reasons that support its decision, requesting the non-renewal of the permit. SECTION IV AUTHORIZATION FOR USE OF PUBLIC SPACE

The Historic Center Management shall be responsible for issuing the Authorization for Use of Public Space for the holding of events with purposes of public interest within the limits of the Historic Center, understanding as public spaces the plazas, parks, promenades and other areas of public use. Said authorization shall be issued by the Construction Control Management, prior to a written request from the interested party and shall be valid only for the specific event mentioned therein, without prejudice to the issuance of temporary licenses for shows, fairs and others issued by the Citizen Services Management.

The Historic Center Management shall be responsible for issuing the Authorization for Audio Advertising within the limits of the Historic Center, understanding as such the use of loudspeakers, megaphones, sound equipment, horns and similar devices, outside of commercial establishments, businesses, schools, etc., for purposes of commercial promotion of goods or services. Said authorization shall be issued prior to a written request from the interested party and payment of an amount of three hundred Lempiras (L. 300.00) for each day of duration and in no case shall exceed three (3) consecutive days. This authorization shall be valid for the activity specified therein and shall be issued provided that the sound level does not exceed 50 decibels within a radius of 100 meters. It is prohibited that the ambient sound from commercial establishments be heard outside the limits thereof, and these must take the necessary precautions to isolate the sound from their premises.

In order to create a Special Fund for the sustainability, expansion and maintenance of urban road infrastructure, including the costs of administration and supervision of such services, the following tax is established for the registration of motor vehicles, cargo trucks, trailers, semi-trailers and motorcycles: CHARGING STRUCTURE FOR ROAD INFRASTRUCTURE MAINTENANCE TAX For vehicles up to year 2008 PRIVATE AUTOMOBILES RENTAL AUTOMOBILES CUBIC CAPACITY 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Tax 370.00 420.00 570.00 680.00 DESCRIPTION TRAILERS, SEMI-TRAILERS and CARGO TRUCKS Road Infra. Maint. Tax 495.00 CUBIC CAPACITY 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Tax 565.00 665.00 765.00 905.00 MOTORCYCLES DESCRIPTION Road Infra. Maint. Tax 195.00 For vehicles from year 2009 to present PRIVATE AUTOMOBILES RENTAL AUTOMOBILES CUBIC CAPACITY 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Tax 420.00 470.00 620.00 730.00 DESCRIPTION TRAILERS, SEMI-TRAILERS and CARGO TRUCKS Road Infra. Maint. Tax 800.00 MOTORCYCLES DESCRIPTION 0-500 CC >501 CC Road Infra. Maint. Tax 140.00 1,000.00 The amount of the tax shall be paid proportionally to the date on which a vehicle is paid off or acquired. Payment of this tax must be made in authorized financial institutions in the special account created for such purposes, within the first fifteen (15) days following registration with the Executive Revenue Direction (DEI); in the first year it shall be made at the moment the importation is effected, whether by the importer or by the buyer. From the second year onwards it shall be made through the national banking system.

New and used vehicles shall pay upon entering the country for the first time, zero point five percent (0.5%) on the CIF value plus the rights and other charges that the importation incurs, at the moment of its liquidation. This registration tax shall apply to the invoice price of sale in the market when the vehicle is acquired in the domestic market. In both cases, the resulting value shall not be less than one thousand Lempiras (L 1,000.00). CUBIC CAPACITY 0-1400 CC 1401-2000 CC 2001-2500 CC > 2501 CC Road Infra. Maint. Tax 650.00 850.00 1,100.00 1,700.00 Payment of this tax shall be annual during a consecutive period of five (5) years, after which it shall proceed to payment of the tariffs established in the previous article. The amount of the tax shall be paid in full, regardless of the date on which the vehicle is paid off or acquired. Payment of this tax must be made in authorized financial institutions in the special account created for such purposes. In the first year, payment shall be made at the moment importation is effected, whether by the importer or the buyer. From the second through the fifth year, it shall be made through the national banking system. The following are exempted from payment of this tax calculation method: a) Vehicles registered with rental plates that obtain the respective operating certificate. b) New motorcycles with cubic capacity equal to or less than 500 CC.

At the moment of paying the registration, the Municipality shall offer for optional acquisition an environmental decal for the value of fifty Lempiras (L.50.00) and whose amount shall be deposited in a special account intended exclusively for the protection and management of the AMITIGRA Forest Reserve, the only national park declared by the Central District and also the main source of water supply for Tegucigalpa. If the environmental decal is not purchased, the Municipality shall always provide the normal vehicle registration decal.

Non-compliance with timely payment of this tax shall be sanctioned with the payment of a fine of four hundred Lempiras (L 400.00) for each month of delay, totaling a maximum of two thousand Lempiras (L 2,000.00) per year, being cumulative in subsequent years. In the case of motorcycles, a fine of fifty Lempiras (L 50.00) shall apply for each month of delay, totaling a maximum of two hundred Lempiras (L 200.00) per year, being cumulative in subsequent years.

The Cadastral Management Service shall be charged as follows: a) Issuance of general plan of the Municipality Urban Zone scale 1:5,000...........................................L 1,000.00 b) Issuance of general plan urban zone Scale: 1:10,000.................................................L 1,000.00 c) Issuance of sectional plans scale various.....L 600.00 d) Issuance of block-by-block plan scale: 1:1000..L 600.00 e) Issuance of topographic sheets scale 1:1,000 or other......................................................................L 400.00 f) Issuance of trace sheets of aerial photographs scale: 1:1000.............................................................L 400.00 g) Issuance of urbanization plans.......................L 1,000.00 h) Certificates of property appraisals, limits and boundaries...................................................................L 600.00 i) Certificate of value per square meter of construction land...............................................................L 300.00 j) Certificate of ownership or non-ownership of real property or information requested by the taxpayer regarding the record of their properties............................................................................L 150.00 k) Certificate of location for processing construction permits and/or business operation permits................................L 150.00

The Construction Control Management may issue a certificate that certifies that the taxpayer has a project that meets all requirements to be approved for purposes of banking procedures exclusively, establishing therein the characteristics of the project and the cost of work according to the cost table or budget submitted by the applicant. Said certificate does NOT constitute authorization to begin the requested construction work. In case that work is begun without the respective construction license, the sanctions established in this Plan of Arbitrios shall apply. The certificate shall have a cost of one hundred fifty lempiras (L. 150.00)

All small businesses shall be exempt from the payment of annual renewal fees described above, when their signage does not exceed two square meters (2.00 M²). Such businesses are established in the following list: LIST OF SMALL BUSINESSES No. DESCRIPTION 1 Small neighborhood stores 2 Beauty salon services 3 Sweets and light foods services (kiosks) 4 Internet services 5 Sale of meats and derivatives (butcheries) 6 Cafeterias 7 Corn grinding and other basic grains services (mills) 8 Food and beverage services (non-alcoholic) snack bars 9 Garment manufacturing except those of animal skin and leather 10 Wooden articles factories (carpentries) 11 Repair of household electrical appliances 12 Tire and pneumatic repair services (tire shops) 13 Food services (dining halls) 14 Footwear repair and other leather articles 15 Upholstery services 16 Sale of fresh fruits, vegetables and produce (greengrocers) 17 Barbershops and/or hair salons 18 Sale of meringue candy 19 Photocopy and stationery services 20 Miscellaneous and Accessories The Municipality may authorize the placement of advertising in revitalization projects of public use areas, through the Construction Control Management who shall determine the conditions, design and execution thereof, being in this case and banners the advertising elements that the Construction Control Management may approve.

The Construction Control Management shall provide alignment, review and approval services for plans established in the Temporary Norms for Updating Zoning and Standards for Subdivisions, Works and Land Use in the Central District, in accordance with the following rates:

• a)

  For the issuance of a permit for urbanization, a tax of 1% (one percent) shall be paid on the value resulting from multiplying the lot area by an amount of four hundred Lempiras (L 400.00) per useful sellable square vara.

• b)

  For modifications and/or subdivisions to already-approved projects, the developer shall pay the equivalent of one hundred percent (100%) of the value resulting from the operation carried out according to the previous subsection of this article, paying only the area to be modified and/or subdivided.

• c)

  In case of social interest urbanizations, a tax rate of one percent (1%) shall be applied on the value resulting from multiplying the lot area by an amount of four hundred Lempiras (L 400.00) per useful sellable square vara.

• d)

  For modifications and/or subdivisions to already-approved social interest projects, the developer shall pay the equivalent of one hundred percent (100%) of the value resulting from the operation carried out according to the previous subsection of this article, paying only the area to be modified and/or subdivided.

• e)

  In case of condominiums, a tax of one point two percent (1.2%) shall be paid on the value resulting from multiplying the total project area by an amount of four hundred Lempiras (L 400.00) per square vara (all lot areas, streets, green areas, reserve, reforestation, etc. apply)

• f)

  For modifications and/or subdivisions to already-approved condominium projects, they shall pay the equivalent of 100% (one hundred percent) of the value resulting from the operation carried out according to the previous subsection of this article, paying only the area to be modified and/or subdivided.

Regarding the transfer of areas in the case of urbanizations. Once the project is approved, the tax is paid and the urbanization permit is issued by the Construction Control Management, the interested party shall have a period of six (6) months to follow the following procedure: The interested party must present to the Construction Control Management and Property Access Management the deed containing the transfer of the areas that correspond to the AMDC, in accordance with the percentages established in the Norms for Updating Zoning and Standards for Subdivisions, Works and Land Use in the Central District, of the area to be urbanized and/or subdivided for purposes of green areas, streets and social equipment. The Construction Control Management and the Infrastructure Management shall conduct the technical review thereof verifying compliance with the previously established areas, street dimensions, material resistance, asphalt or concrete tests, etc. As well as the proper delimitation and identification of both green areas and social equipment; forwarding to the Legal Services Management, which shall make legal valuations of the document, so that it may forward it to the Honorable Municipal Corporation for its respective acceptance. Once the areas are deeded and registered in favor of the Mayor's Office, the Municipal Secretary shall notify the following: Construction Control Management, Cadastral Management and Property Access Management, coming under permanent control and maintenance of the Environmental Management Unit, likewise it shall be reported to the Finance Direction and Management for its registration in the Balance Sheet of the Mayor's Office. In case of modification of any of the aspects approved in the project, the interested party must, prior to executing them, submit their corresponding request, otherwise, they shall incur a fine equivalent to two hundred percent (200%) of the value of the permit for modification. Once the request is received, it shall initiate the process described above in the paragraphs of this chapter. Non-compliance with what was described above shall be sanctioned with a fine of 200% of the value of the Urbanization Permit.

All construction, expansion, legalization, change of use, remodeling or restoration, demolition, earth movement, excavations or fills, and/or any complementary work of any building or structure within the municipal limits shall be authorized by the Construction Control Management. The Laws and norms applied by other institutions that require some authorization (SERNA, SANAA, ENEE and others of special regime) shall apply; the taxpayer shall not be able to begin construction work as long as they do not obtain such authorizations even though they have the construction permit issued by the Construction Control Management; non-compliance with this provision shall give rise to the revocation or cancellation of the authorization issued. For the issuance of construction permits, the Construction Control Management shall evaluate the technical aspects contained in the Temporary Norms for Updating Zoning and Standards for Subdivisions, Works and Land Use in the Central District. When it comes to buildings of colonial and historical architecture, a favorable opinion from the Historic Center Management shall be previously required. Once the documentation and final plans are received by the Construction Control Management, it shall issue the corresponding permit, prior to payment that the interested party must make according to what is established in the construction cost table of this Plan of Arbitrios, the foregoing without prejudice to the payment of fines when these are applicable. To determine the total cost of the work, the calculation must be made based on the work cost table, this being the minimum value. The interested party according to their budget may declare under oath a value greater than the minimum established in the tables and to this value the corresponding percentage of the tax shall apply according to their request. In case the total cost of work is less than what is established in the work cost table, the Construction Control Management shall apply the one assigned in the table. The taxes corresponding to the permits issued by the Construction Control Management must be paid in institutions of the national financial system authorized by the Mayor's Office and shall be made in accordance with the following work cost tables: WORK COST TABLE TYPE DESCRIPTION UNIT COST RATE ONE OR TWO STORY BUILDINGS For all one or two-story buildings regardless of their use M² L7,500.00 1.00% THREE OR MORE STORY BUILDINGS For all buildings of three or more stories regardless of their use M² L8,500.00 1.00% SINGLE-FAMILY HOUSING Housing up to 60.00m² M² L6,250.00 0.40% Housing with area of 60.01 to 100.00m² M² L6,250.00 0.50% Housing with area of 100.01 to 200.00m² M² L6,250.00 0.70% Housing with area of 200.01 to 300.00m² M² L6,750.00 1.00% Housing with area greater than 300.01m² M² L7,500.00 1.00% WAREHOUSE BUILDINGS Metal frame structures type rigid frame or metal trusses on load-bearing walls, sheet roof. A. One story, with maximum height of 6.00 meters. M² L3,000.00 1.00% B. One story, at a height greater than 6.00 meters. M² L3,000.00 1.00% C. Two or more stories M² L3,000.00 1.00% BUILDINGS FOR INDUSTRIAL INSTALLATIONS Metal structure, wood trusses, stringers or purlins, sheet roof and load-bearing walls. A. One story with maximum height of 6.00 meters. M² L3,000.00 1.00% B. One story, at a height greater than 6.00 meters. M² L3,000.00 1.00% C. Two or more stories M² L3,000.00 1.00% OTHERS Gas stations M² L8,500.00 1.00% Guard booths (kiosks) M² L8,500.00 1.00% Multi-use hall M² L8,500.00 1.00% Basements M² L8,500.00 1.00% Pedestrian bridges M² L8,500.00 1.00% OTHER CONSTRUCTION ACTIVITIES Raising brick walls M² L900.00 1.00% Raising block walls M² L700.00 1.00% Retention wall M³ L3,000.00 1.00% Raising stone walls M² L2,000.00 1.00% Raising prefabricated walls M² L1,500.00 1.00% Raising walls of other materials M² L600.00 1.00% Roofing with sheet over M² L1,200.00 1.00% metal or wood structure Concrete roofing M² L2,250.00 1.00% Change from sheet to sheet roofing M² L800.00 1.00% Parking with sheet roofing M² L2,000.00 1.00% Parking with slab roofing M² L3,500.00 1.00% Excavations and/or earth movement M³ L250.00 1.00% Demolition M² L250.00 1.00% Exterior work, landscaping M² L750.00 1.00% Casting of concrete pavements, asphalt, private parking without roofing M² L1,500.00 1.00% Swimming pools M³ L7,500.00 1.00% Cisterns M³ L4,000.00 1.00% Gates for guard booths ML L2,500.00 1.00% REMODELING, MODIFICATIONS OF APPROVED PROJECTS AND/OR CHANGES OF USE Social interest homes (up to 45.00m²) L100.00 Remodeling and changes of use greater than 45.00m2 and up to 200.00m2 (single-family, multifamily housing and/or non-residential uses) 20% of the value of the construction license calculated on the total area of remodeling Remodeling and changes of use greater than 200.00 M2 (single-family, multifamily housing and/or non-residential uses) 30% of the value of the construction license calculated on the total area of remodeling. EXTENSIONS In case of social interest housing, the extension of the permit shall pay 10% of the value of the license In other cases, the extension after the permit expiration date shall pay 10% of the value of the license with a minimum of L.150.00. The cost per square meter in these present "work cost" tables were provided by the Honduran Chamber of Industry and Construction (CHICO), which must update and publish said costs quarterly through an informational bulletin in a newspaper of national circulation or by other appropriate means. The Municipal Mayor's Office of the Central District may review and update the costs per square meter according to official publications. For the pertinent legal purposes, CHICO, prior to publication of cost updates, shall send official communication to the Mayor's Office with the new values, this with the purpose of timely homologizing the amounts to be charged. Construction area shall be understood as the covered area per level without including eaves and gutters. However, overhangs, balconies, terraces, garages and other covered or roofed surfaces shall be included for said calculation. The costs per square meter and the respective rate in the cases established in the work cost table shall be the result of the sum of existing construction plus the new area to be constructed. Once the previous calculation is completed, the rate to be charged shall be only for the square meters to be constructed; the existing area shall not be charged.

The owner of the construction and/or subdivision of lots (in already urbanized areas) shall pay, on a one-time basis, for the purpose of assigning nomenclature to the home or building, the amount of seven hundred fifty Lempiras (L750.00). The owner shall be obligated to have the respective plaque made, following for such purpose the guidelines established by the "Department of Urban and Private Nomenclature" dependent on the Construction Control Management, which shall issue the respective payment order.

SUPERVISION OF URBANIZATIONS. All natural or legal persons who were authorized for urbanization projects during the last five years and who have not complied with the execution schedule approved at that time or have not carried out the corresponding transfer of green areas in favor of the Municipality through a public deed properly recorded in the Property Registry, and continue performing construction work to date, shall be subject to an audit by the Construction Control Management to determine the values for supervision purposes. They may not continue with pending procedures nor initiate new ones if the resulting amounts have not been paid. The monthly amount to be paid shall be thirteen thousand lempiras (L13,000.00), so the audit shall reflect the number of months that have been worked outside the authorized and paid schedule, as well as the months that the developer will require to complete the urbanization project. The result shall be the months worked outside the schedule plus the months requested by the interested party to finish the project, multiplied by the amount indicated in this paragraph.

The supervision by the Construction Control Management shall encompass the following aspects: a) Compliance with the rights-of-way approved. b) Compliance with aspects detailed in the approval opinion. Once the project is approved, the fee is paid and the urbanization permit is issued by the Construction Control Management, it shall send a copy of the approved plans and technical execution reports to the Infrastructure Management, which shall follow up on the entire process to ensure that the work guarantees the required quality. At the end of the process, it shall be governed by the provisions established in article XX regarding the transfer of areas set forth in this tax plan. The Infrastructure Management shall be responsible for the supervision of urbanization work related to: Construction plans and technical execution report. For supervision purposes, the Construction Control Management and Infrastructure Management shall establish the procedures they deem appropriate for its execution.

For non-compliance with current regulations, sanctions shall be imposed in accordance with the following table. The application of fines and sanctions is carried out without prejudice to the obligation to perform the corresponding construction permits procedure. SANCTIONS TABLE CONSTRUCTION CONTROL MANAGEMENT ACTIVITY / INFRACTIONS SANCTION OBSERVATIONS A. Submitting false data by the owner and/or professional in forms, plans, reports, opinions, or any other document that is part of a file. Judge of the Municipal Department of Justice shall proceed to halt the works. B. Denying access to personnel of the Construction Control Management properly identified during business hours, whenever a license has been granted on the property and the same is current. As well as all those properties that have construction processes. Judge of the Municipal Department of Justice shall sanction with the corresponding Fine C. Failure to return permits issued within the time period when these have expired. Five percent (5%) of the cost of the license D. Failure to execute work in accordance with the authorized plans. Urbanizations, constructions, etc. A fine of two hundred percent (200%) of the cost of the permit for the modified area shall be applied. E. Failure to place in a visible location facing the exterior the identification sign containing the license number that covers the work being performed. Five percent (5%) of the cost of the license G. Occupying a building without prior obtaining evidence of completion of the work. Twenty percent (20%) of the cost of the license H. Failure to comply with repair or demolition orders for unsafe or dangerous buildings. When a demolition is carried out by order of the Corporation or another authority, the amount established in this Tax Plan shall be charged, chargeable to the property owner, plus the costs incurred by the Municipality in the execution of the repair or demolition, which shall be determined by the Construction Control Management. I. Depositing materials in the public right-of-way without complying with current regulations. Twenty-five percent (25%) of the cost of the license. In the case of Subdivisions, Urbanizations and Commercial Twenty-five percent (25%), for recidivism. In no case shall the fine imposed exceed L. 20,000.00 twenty thousand lempiras only for single-family and multi-family housing. J. Changing the use of a building without the corresponding permit issued by the Construction Control Management. Twenty percent (20%) of the cost of the license K. Using the public right-of-way to mix materials and/or perform any construction-related activity. Twenty percent (20%) of the cost of the license, in no case shall the fine imposed exceed twenty thousand lempiras (L 20,000.00) When construction-related work is performed on the public right-of-way, the amount established in this tax plan shall be charged, chargeable to the property owner, plus the costs incurred by the Municipality for the repair of the public right-of-way, which shall be determined by the Construction Control Management. M. Failure to provide written notice by the owner or executor that the latter ceased to act as such and inform of the new executor. Work stoppage N. Initiating a construction without the respective authorization from the Construction Control Management. Two hundred percent (200%) of the cost of the license Without prejudice to the stoppage and the sanction, when it is determined that the presence of municipal police is necessary to prevent the resumption of work while it is not authorized, the violator must additionally pay an amount of up to one thousand lempiras daily for each member of the Municipal Police assigned, according to the economic capacity of the violator, the size of the work and the severity of the fault. Q. Damage or affect the public right-of-way (sidewalks, streets, flower beds, borders, catch basins, etc.) and existing infrastructure. One hundred percent (100%) of the cost of the damaged or affected work When damages occur to the public right-of-way, the amount established in this tax plan shall be charged, chargeable to the property owner, plus the costs incurred by the Municipality in the repair of damages caused to the public right-of-way, which shall be determined by the Construction Control Management. R. Failure to remove from the public right-of-way the barriers, scaffolding and installations of any safety system upon expiration of the license, or if the project is not carried out. Twenty-five percent (25%) of the cost of the license In no case shall the fine imposed exceed twenty thousand lempiras (L. 20,000.00)

To natural or legal persons who begin construction work without having the respective permit, understanding as work for this purpose that which is established in the regulation, the fine established in the current Tax Plan shall be applied. Once the amount is determined, it may be applied in the following manner: the interested party must accredit before the Municipal Department of Justice the payment of the amount corresponding to the construction permit granted by the Construction Control Management as an essential requirement for the benefit to be granted. Once recognized and having paid the percentage corresponding to the fine, the respective permit shall be issued. Natural or legal persons to whom the corresponding fine has been imposed for starting work without the respective permit before the effective date of this regulation shall enjoy the same benefits for the persons related in the preamble of this article. The date of notification for the calculation of days and their respective percentage of benefit shall correspond to the day of the effective date of this regulation, applicable only for cases in which a fine was imposed before the effective date of this regulation. They shall pay twenty-five percent (25%) of the fine if they prove payment of the permit within a period of ten (10) days counted from the notification of the fine imposed. They shall pay forty percent (40%) those persons who prove payment of the construction permit in the period between day 11 and day 20 counted from the notification of the fine imposed. They shall pay seventy percent (70%) those persons who prove payment of the construction permit in the period between day 21 and day 30 counted from the notification of the fine imposed. It is understood that the aforementioned time periods are established in business days. The provisions contained in this article are applicable until June 30, 2013.

Those persons who, as of the effective date of this regulation, have paid the amounts corresponding to the rate for license or construction permit and the percentage of the fine required to access payment plans and those who have already subscribed to their payment plans as of that date shall enjoy the same benefit, being able to be released from the rest of the obligation in accordance with the date they present to subscribe the respective discharge at the Municipal Department of Justice as established in the previous article. Payment agreements that have been executed at a percentage higher than that which would correspond in accordance with the date the beneficiary presents to the Construction Control Management shall be deemed automatically fulfilled, without this implying any type of return or credit on the excess.

The Inadequate Construction Program consists of the application of sanctions to natural and legal persons, owners of properties whose work does not conform to the parameters established in the Interim Standards for Updating Zoning and Standards for Subdivision, Works and Land Use in the Central District, as well as any other regulations related to construction processes in the Central District. The taxpayer who has built without a license, or does not comply with what is authorized in the license granted by the Construction Control Management, once entered into the Inadequate Construction Program in accordance with its regulations, must pay the following amounts: Residential Use One percent (1%) of the value of the Work, determined by the Construction Control Management, based on the work cost tables of the current Tax Plan. Non-Residential Use Two point five percent (2.5%) of the value of the Work, determined by the Construction Control Management, based on the work cost tables of the current Tax Plan. Once the value of the work is determined, the percentage previously described shall be applied. The result thereof (annual charge) shall be divided by four to determine the quarterly amount to be paid, which the taxpayer must pay quarterly until they exit the inadequate construction program (according to causes determined in the Inadequate Construction Regulations). In cases of non-residential use works, failure to pay two consecutive quarters shall result in the cancellation of the operating permit and temporary closure of the business. Companies that occupy spaces in properties subject to the Inadequate Construction Program must vacate such property within a period not to exceed thirty days counted from the date the property owner inscribed in the aforementioned program enters into default. The Inadequate Construction Program is applied without prejudice to the imposition of fines that may be applicable for starting work without the respective license or that with a license work is carried out not authorized in the same. For purposes of payment of the amounts established in the Inadequate Construction Program, the Construction Control Management shall issue the corresponding payment orders, as established in the regulations.

When a demolition is carried out by order of the Corporation or another authority, the amount established in this Tax Plan shall be charged, chargeable to the property owner, plus the costs incurred by the Municipality, which shall be determined by the Construction Control Management. In the event there is a property in ruins that causes damage or harm to pedestrians, risk to adjacent properties or causes environmental pollution, the Municipality shall proceed ex officio to carry out its demolition, prior notification to the owner and exhausting the administrative procedure with an opinion from the Environmental Management Unit. When the property to be demolished is located in the historic district, the Historic Center Management shall be notified. Regarding the sanctions that entail demolition of works, the provisions of the Interim Standards for Updating Zoning and Standards for Subdivision, Works and Land Use in the Central District, the sanctions tables contained in this Tax Plan and the Police and Social Coexistence Law shall apply.

Public institutions, natural or private legal persons shall pay monthly for the occupation of the public right-of-way, twenty lempiras (L.20.00) for each pole and for the use of airspace through the laying of cables of any nature for the provision of electric power, telephone, audio, video, Internet and other services, ten centavos (L.0.10) for each linear meter of cabling of any type. The installation of said poles, whether by public institutions, natural or private legal persons, must have prior approval from the Construction Control Management. In the case of the Historic Center, it must have a favorable opinion from the Historic Center Management. In both cases, the amount of three hundred lempiras (L.300.00) per unit must be paid through the authorized banking system. The installation of poles without the corresponding authorization shall cause a fine equivalent to one hundred percent (100%) of the permit value. The rate established in the previous paragraph shall be subject to quarterly payment to be made at financial system institutions authorized by the Municipality, in accordance with the payment notice issued by the Construction Control Management. For this purpose, the obligated parties must provide the Construction Control Management with a sworn quarterly statement within the first ten days (10) of the months of January, April, July and October, which shall contain the number of poles, linear meters of installed cables and the database corresponding to the number of users and the monthly amount they charge. Failure to pay (renewal of the permit) within the first ten days (10) of the months of January, April, July and October shall cause a fine equivalent to one hundred percent (100%) of the amount to be paid for such renewal.

Telephone companies are prohibited from constructing new towers or any supporting element and/or installation of new communication antennas in public and/or private space within the Municipality of the Central District, and the immediate suspension of those constructions and installations already initiated that do not have the corresponding municipal permit is ordered. Authorizations for these elements issued by the AMDC in previous years and/or that are not in operation, when the GCC deems it necessary and convenient, may revoke the authorization issued and order the removal thereof. The Construction Control Management is instructed not to issue new authorizations or permits, as long as the companies do not obtain the corresponding permits for the towers or any other supporting element and/or the antennas already installed.

For the Municipality of the Central District to begin the process of recognition of towers or any supporting element and/or telephone antennas and of any other kind, that do not have authorization, the interested party or parties must mandatorily provide to the Construction Control Management, as an essential requirement, an inventory of the antennas and/or towers already installed and the specifications that this Management shall indicate. Prior to the Construction Control Management issuing the corresponding authorization.

For the legalization of towers or any supporting element and/or telephone antennas and of any other kind, that do not have the proper authorization, the interested party or parties must provide to the Construction Control Management, as an essential requirement, an inventory of the antennas and/or towers already installed and the specifications that this Management shall indicate. Prior to the Construction Control Management issuing the corresponding authorization.

For the legalization of towers or any supporting element and/or telephone antennas and of any other kind, that do not have the proper authorization, an authorization request shall be submitted, for which purpose the Municipality, through the Construction Control Management, shall recognize the point where they are installed without permit and shall issue the corresponding authorization, provided that there is no opposition by natural or legal persons prior to the date of effective date of this regulation or if it is located in areas or zones protected or under a special regime that prohibits it.

For the authorization mentioned in the preceding article, the interested party must pay, for the purpose of authorization, a one-time amount in favor of the Municipality of the Central District of sixty thousand lempiras (L.60,000.00), for each tower or any supporting element and/or telephone antenna, if said authorization request and inventories are presented within the first twenty (20) business days, counted from the day following the effective date of the Plan. They shall also pay for renewal the amount of ten thousand lempiras exactly (Lps. 10,000.00) annually for each element. Those interested who present the request and inventories outside this period must pay 100% of the permit value. Once the payment order is issued and delivered, the interested party must pay within the following five (5) business days, and payments made outside this date are subject to an interest equal to the active rate of the financial system, plus a surcharge of 2% annually calculated on the balance.

Those towers, antennas and other supporting elements installed that were not legalized within the period established in the previous articles shall be dismantled within a period not to exceed thirty (30) business days. Non-compliance with these provisions shall be sanctioned in accordance with the provisions of the Police and Social Coexistence Law. Likewise, the Municipality reserves the right to remove the towers and/or antennas, whose removal costs and risk are at the account of the violator, without prejudice to the cancellation of the operating permit of the company and the exercise of civil and criminal actions that may apply.

It is the exclusive responsibility of the Municipality to authorize the breaking of streets, sidewalks, bridges and other public use properties. Authorizations shall cause the payment of the following fees:

• a)

  One hundred lempiras (L100.00) per M² or fraction, in dirt streets.

• b)

  Two hundred lempiras (L200.00) per M² or fraction, in paving stone streets.

• c)

  Two hundred lempiras (L200.00) per M² or fraction, in paving stone streets.

• d)

  Two hundred twenty-five lempiras (L225.00) per M² or fraction, in round or river stone streets.

• e)

  Two hundred fifty lempiras (L250.00) per M² or fraction, in asphalt concrete streets.

• f)

  Two hundred fifty lempiras (L250.00) per M² or fraction, in hydraulic concrete streets.

• g)

  Two hundred lempiras (L200.00) per M² or fraction, in sidewalks of any material.

• h)

  Two hundred lempiras (L200.00) per M² or fraction, in improved green area.

• i)

  Fifty lempiras (L50.00) per ML or fraction, in curb. The Construction Control Management shall authorize the breaking of streets, with the mandatory requirement that the interested party attach to the request the certificate issued by the National Autonomous Service of Aqueducts and Sewers (SANAA) approving the service, when applicable. The permit shall be delivered prior to payment of the fees approved in this Plan. The breaking of streets and sidewalks must be repaired with the same quality of material used in the street or sidewalk, leaving them in equal or better conditions than the original. Persons requesting the permit for breaking of streets, avenues and sidewalks shall deposit a bond or bank guarantee equivalent to three and one-half times (3½) the total cost of the repair (value calculated per square meter). Once the corresponding permit is issued, the Construction Control Management shall send the complete file with all its records to the Infrastructure Management, which shall follow up on the process to ensure that the work guarantees that the public right-of-way is left in equal or better conditions. If the repair is not done within the time stipulated in the permit, the Municipality shall execute the guarantee and proceed with the repair of the right-of-way. The withdrawal of the guarantee must be carried out within a period not less than six (6) months nor greater than one (1) year, depending on the magnitude of the breaking, the type of material existing in the riding surface and the road hierarchy of the affected right-of-way, and once it is verified that the repair was done properly and is in perfect condition. It is understood that when regional distributors, main roads, sector roads, local roads or paved access streets with significant vehicular flow are affected, the guarantee shall obligatorily be delivered after one year from when the right-of-way breaking has been repaired and its execution does not invalidate the validity of the Commitment Agreement. Those who carry out breaking of public right-of-way without having the respective permit shall be sanctioned with an amount equivalent to the bond that should have been processed, without prejudice to immediately executing the repair, paying the amount equivalent to the permit that should have been processed and presenting the bank guarantee. No state institution, centralized, decentralized or deconcentrated entity of the State, autonomous and semi-autonomous entities shall be exempt from this provision, with whom special agreements may be entered into on this matter.

Signs, billboards, posters, advertising notices and propaganda of any kind, within the municipal area and in the sites that are authorized, shall pay a single amount for the installation permit of the structure as established in the following subsections and annually for the renewal of the permit shall pay the same amount established in the following subsections, being able to cancel said concept through a payment agreement executed exclusively by the Construction Control Management, being required to pay at minimum twenty-five percent (25%) of the total amount owed at the time of executing the agreement and the remaining amount in a maximum of twelve months, in no case may it exceed the current fiscal year, being necessary if required to adjust the final number of installments to the number of remaining months of the fiscal year when applicable. To guarantee compliance with the obligation (payment agreement) the interested party must obligatorily issue in favor of the Municipality a bill of exchange for the total value of the debt, this being an indispensable requirement for the execution of agreements. In accordance with the Regulations for Signs and Billboards in effect and the following classification, they shall pay: a) Propaganda placed on marquees, awnings and umbrellas of buildings, shall pay annually three hundred Lempiras (L300.00) per square meter or fraction, these being required to be placed on private property and may extend over the sidewalk as long as it does not exceed half of the same b) Conventional advertising billboards may be placed in private locations within and outside the urban area and that are located in places different from the property occupied by the establishment they advertise and shall pay annually two hundred fifty Lempiras (L.250.00) per square meter or fraction of a meter. In case of unipolar luminous billboards and/or signs they shall pay annually three hundred Lempiras exactly (L. 300.00) per square meter or fraction of a meter; and non-luminous shall pay annually two hundred fifty Lempiras (L250.00) per square meter or fraction of a meter, the interested party being required to present an insurance policy against third parties once approved. c) Electronic screens shall be paid annually at five thousand Lempiras (L.5,000.00) per square meter or fraction of a meter. d) Digital screens shall pay annually two thousand Lempiras exactly (L. 2,000.00) per square meter or fraction of a meter e) Luminous signs of flag type, attached, adhered and of any other type, shall pay annually four hundred lempiras (L.400.00) per square meter or fraction of a meter. f) For the distribution of leaflets fifty Lempiras (L.50.00) for each one hundred. Distribution shall only be permitted in commercial centers, public education institutions and similar ones, prior to authorization by their owner and/or administrator. Lack of permission generates a fine of three thousand Lempiras (L.3,000.00) for each one hundred leaflets or sheets. g) Advertising signs that are installed or painted on motor vehicles that identify the commercial activity to which the company owning the vehicle is dedicated in accordance with the provisions of the Construction Control Management shall pay annually per vehicle one thousand Lempiras (L.1,000.00) per vehicle. h) Advertising notices that are installed or painted on motor vehicles that do NOT identify the commercial activity to which the company owning the vehicle is dedicated shall pay annually two hundred fifty Lempiras (L.250.00) per vehicle. i) The Municipality may authorize the placement of advertising in revitalization projects of public use areas, through the Construction Control Management which shall determine the conditions, design and execution of the same, being in this case and banners the advertising elements that the Construction Control Management may approve. Any other type of advertising in public space shall be approved by the Honorable Municipal Corporation. j) For mini billboards an annual payment of seven hundred Lempiras (L.700.00) per square meter or fraction of a meter shall be made, these shall be permitted only within private properties (mini billboards attached to perimeter walls may not be authorized if these are located on the public right-of-way as well as any element that is attached to the billboard and that is on the public right-of-way, outside the property boundary) and the same shall not have a measurement greater than five (5.00) by two point fifty (2.50) meters including all elements of the mini billboard such as the frame, likewise the elements for lighting may extend over public space at a minimum height of three (3.00) meters occupying at maximum half of the sidewalk and this measurement may not exceed ninety centimeters in any case. No more than three mini billboards per location shall be permitted. k) For advertising in urban furniture and anything that is authorizable in public space, an annual payment of three hundred Lempiras (L300.00) per square meter or fraction of a meter shall be made (mupis and/or mopis, pedestrian bridges, vehicular bridges, etc.). l) For the installation of inflatable advertising the Construction Control Management shall establish the parameters for authorization of installation), dirigibles, small airplanes or similar, one thousand Lempiras (L1,000.00) per unit shall be paid; the same amount shall be paid for each week or fraction of a week in which such advertising is used m) No type of advertising in public space and right-of-way that is placed on posts, persons in motion or on non-motorized means of transport shall be authorized; advertising elements may be seized without prejudice to the fine imposed which shall be four hundred lempiras (Lps. 400) per square meter or fraction. n) For announcements or propaganda on banners, pendants or banners (made of fiberglass, silicone or any other material) per unit and per week or fraction of a week, three hundred Lempiras (L.300.00) shall be charged; to guarantee their removal the Construction Control Management shall not authorize new installations to the interested party without having removed the previously authorized one, the interested party shall remove at most one day after the expiration of the permit for said banner and otherwise the Construction Control Management shall not authorize new requests from the same natural or legal person. These shall only be permitted placed vertically in accordance with the guidelines established by the Construction Control Management. n) Advertising of any commercial activity, adhered, painted or flag type that occupies the business or in places of public performances, shall be charged annually two hundred Lempiras (L.200.00) per square meter or fraction of meters.

It is prohibited to affix advertising or propaganda on posts and walls at the boundaries of the Historic Center using any type of adhesive. Likewise, it is strictly prohibited within the cadastral sectors that comprise the Historic Center area, the placement of propaganda on building facades, public lighting posts or telephone posts or on any other urban equipment, such as: telephone booths, garbage deposits, bus and taxi stations, etc. For the installation of any signs or advertising notices in the Historic Center area, prior authorization must be requested, prior to the permit extended by the Construction Control Management, the approval authorization of the Historic Center Management. Luminous signs, electronic screens or similar elements shall not be permitted. Contravention of the above established shall cause a fine of ten thousand Lempiras (L.10,000.00) as well as the mandatory immediate removal thereof.

All small businesses shall be exempt from annual payment for the renewal described above, when their sign does not exceed one point five square meters (1.5 M²). Said businesses are established in the following list: LIST OF SMALL BUSINESSES No. DESCRIPTION 1 General stores 2 Beauty salon services 3 Candy and light food services (kiosks) 4 Internet services 5 Sale of meats and meat products (butcher shops) 6 Cafeterias 7 Corn milling services and other basic grains (mills) 8 Food and beverage services (non-alcoholic) snack bars 9 Clothing garment manufacturing except leather goods 10 Wood article factories (carpentry shops) 11 Repair of domestic use electrical appliances 12 Tire and pneumatic repair services (tire shops) 13 Food services (dining halls) 14 Shoe repair and other leather articles 15 Upholstery services 16 Sale of fresh fruits, vegetables and produce (produce shops) 17 Barber shops and/or hair salons 18 Sale of jellies 19 Photocopy and stationery services 20 Miscellaneous and Accessories Any activity of companies considered as microenterprises, simple accumulation enterprises and subsistence enterprises, in accordance with the law and what the Construction Control Management establishes.

With respect to unipolar billboards that are already installed, the Construction Control Management may legalize their installation with the characteristics and conditions with which they are installed, provided that they comply with zoning parameters. This type of legalizations that are obtained within the time established in the following article shall be exempted from the amount of fines, surcharges and interest generated by the installation of billboards without authorization and from the fine imposed for not having paid on time and in the proper manner the renewal of the corresponding permit and those complete requests that being subject to the imposition of the fine are submitted and resolved during the time established in the following article.

Taxpayers may benefit from this procedure and therefore from the benefit, whether natural or legal persons, owners (the owner of the property, the company owning the billboard or the advertiser, shall be jointly and severally liable) of unipolar billboards installed within the Central District that process their permit and that make payments for all pending years of payment including 2010, with the amounts established in this Plan of Fees, which shall be applied in the following manner:

• a)

  Payment of twenty-five percent (25%) of the fine from day one (1) to forty-five (45).

• b)

  Payment of fifty percent (50%) of the fine from day forty-six (46) to seventy (70).

• c)

  Payment of seventy-five percent (75%) of the fine from day seventy-one (71) to ninety (90). The above terms shall be understood to be counted from the day following the publication of this Plan of Fees and shall be calculated in business days.

Those persons who as of the effective date of this Plan of Fees had paid the amounts corresponding to the license fee or installation permit rate and the percentage of the fine required to access payment plans and those who as of that date had already entered into payment plans, shall enjoy the same benefit, being able to be released from the remainder of the obligation in accordance with the date they present themselves to execute the respective discharge to the Construction Control Management in accordance with the provisions of the previous article. Payment agreements that have been executed in a percentage greater than that which would correspond in accordance with the date in which the beneficiary presents himself to the Construction Control Management, shall be considered automatically fulfilled, without this implying any type of return or credit on the excess.

GENERALITIES AND SANCTIONS: The location or distribution of all types of signs or written advertising is subject to the following:

• a)

  The Construction Control Management shall be responsible for the regulation of all advertising within the Municipality, which shall determine the guidelines to follow, including the application of restrictions in areas under special control for environmental, cultural, historical, comfort, ornamental and safety reasons. In cases of non-compliance with current regulations the Construction Control Management shall report to the Municipal Department of Justice which through the unit created for that purpose, shall proceed to execute the removal of the sign or billboard at the expense of the infractor, without prejudice to the imposition and corresponding payment of the same.

• b)

  Billboards are subject to annual payment to be made in institutions of the national financial system authorized by the Municipality, in accordance with the payment notice issued by the Construction Control Management. The responsibility for any irregularity, and payment for the installation and/or renewal of billboards and/or is joint and several between the advertiser, advertiser and owner of the land where the billboard and/or sign is located. It is understood that the issuance of the permit for the installation of advertising billboards shall be the exclusive faculty of the Construction Control Management.

• c)

  For the renewal of all types of advertising elements, all natural or legal persons are obligated to provide the Construction Control Management with a sworn statement of the number of signs, billboards and all types of advertising elements they have installed in the Central District (inventory), within a maximum period of twenty (20) business days from the effective date of this Plan of Fees. The Construction Control Management shall establish the conditions and requirements at its discretion in which said inventory should be presented. In case of non-presentation within the time established above, corresponding sanctions shall be applied and the items shall be removed and destroyed.

• d)

  Prior to issuing the statement for payment of the Industry, Commerce and Services Tax, the Collections and Financial Control Management and/or the AER shall request from the taxpayer certification issued by the Construction Control Management indicating that the taxpayer is current in payment of signs, billboards, posts, cables and any other type of element installed in or over the public right-of-way or within private property.

• e)

  Failure to obtain authorization for installation and/or renewal within the times established in the plan of fees shall generate a fine of 100% of the permit or its renewal, this fine shall be applied to both the company owning the support element and the company that advertises.

• f)

  Every collection requirement for the concept of payment of permits, renewals, opinions and other services of the Construction Control Management whose requests have been filed in previous years shall be calculated and issued based on this Plan of Fees.

• g)

  In the case of companies that advertise without the respective permit, the Construction Control Management shall notify said non-compliance, giving it a period of five days (5) to present the corresponding installation permit, in case of presenting it shall be subject to the percentages established in this plan of fees, in which the date of its payment shall depend for the exemption of the corresponding percentage, if it does not do so the sanction of one hundred percent 100% previously described shall be imposed, it shall proceed to its removal and without prejudice to the cancellation of the corresponding operation permit of the advertising company and the business being publicized.

• h)

  The installation of signs, billboards and others without the corresponding permit, shall cause a fine equivalent to one hundred percent (100%) of the value of the permit, without prejudice to removal in case it is located in sites not permitted. Late renewal shall cause a fine equivalent to one hundred percent (100%) of the value of the renewal.

• i)

  The installation of signs and advertising billboards without complying with the technical and safety specifications contained in the corresponding installation and/or renewal permit, shall be sanctioned with a fine equivalent to fifty percent (50%) of the value of the installation permit without prejudice to the corrections that the infractor must make.

• j)

  The distribution of propaganda and/or written advertising in contravention to laws, morality, good customs, or that does not include information about its origin or person responsible for its distribution shall not be permitted. In case of violation of the above, the propaganda and/or publicity shall be seized and those responsible shall be sanctioned with a fine of three thousand lempiras (L.3,000.00), without prejudice to the legal responsibilities that are appropriate.

• k)

  It is strictly prohibited within the cadastral sectors that comprise the Historic Center area, the placement of propaganda on building facades, public lighting posts or telephone posts or on any other urban equipment, such as: telephone booths, garbage deposits, bus and taxi stations, etc. For the installation of any sign or advertising notice in the Historic Center area, prior authorization must be requested, prior to the permit extended by the Construction Control Management, the certification of approval from the Historic Center Management. Luminous signs, electronic screens or similar elements shall not be permitted. Contravention of the above established shall cause a fine of ten thousand Lempiras (L.10,000.00) as well as the mandatory immediate removal thereof.

• l)

  The values that are paid in concepts of permit rate and/or renewal and these are not used may not be used in other requests. At no time shall this municipality return the payment made for the installation permit for advertising whether due to problems that the beneficiary had in not being able to install the authorized advertising or that it be removed before the end of the validity of the permit that the interested party holds.

• m)

  The Construction Control Management may approve the installation of two or more unipolar signs regardless of the distance of separation that exists between them as long as the property in which it is intended to install the sign carries out the commercial activity being publicized. The maximum permitted height of the unipolar sign shall be nine (9.00) meters.

• n)

  The Construction Control Management may authorize the installation and renewal of fixed electronic screens, mobile screens as well as mobile billboards, prior to compliance with the requirements that said management establishes through respective form. In the case of mobile electronic screens and mobile billboards they must present favorable opinion from the National Traffic Directorate or the Department of Roads and Transportation of the Municipality.

(FINAL PROVISIONS): SANCTIONS AND MANDATORY COMPLIANCE No governmental, autonomous or decentralized institution, natural or legal person that is exempt from payment of the construction work license fee; may authorize or begin the construction of works without the approval of the Construction Control Management, otherwise the sanctions and fines established in the Effective Plan of Fees shall be applied.

Those natural or legal persons who as of the effective date of this Plan of Fees have outstanding debts corresponding to the construction work license fee, shall have said amount transferred for collection on any tax administered by the Municipal Municipality.

Any proceeding presented before the AMDC, in which certificates or other documents issued by the municipality or by other institutions are attached that do not establish the validity thereof, it shall be presumed that said validity shall be one calendar year or shall expire on December 31 of the year of issuance of the document. CHAPTER X RATE FOR MITIGATION OF VEHICLE IMPACTS ON PUBLIC SPACE OF THE CENTRAL DISTRICT SINGLE SECTION

The Rate for conducting the Traffic Impact process is hereby created. It is the administrative rate per trip to be paid by the interested party for conducting the traffic impact process, established in the following table. The aforementioned rate shall serve to finance the administrative cost of processing the file, conducting vehicle counts and other traffic studies, calculation of the official cost of road works and their supervision, regardless of whether mitigation is on account of the interested party or through the Municipality. Likewise, in the case that the process is conducted through traffic impact mitigation via the Municipality, a Proportional Amount for Traffic Impact (MPIV) shall be charged which shall be calculated based on the following table, according to the proposed use. FIGURES OF TRIP ATTRACTION AND GENERATION LAND USE TRIPS GENERATED FOR EACH 100.00 M² RATE PER TRIP MPIV PER TRIP LOW IMPACT LAND USES Warehouse 0.13 L.750.00 L.1,000.00 Office-warehouse 0.55 L.750.00 L.1,000.00 Maquiladora or other mechanized industry 0.80 L.750.00 L.1,000.00 Housing 1.01 L.750.00 L.1,000.00 Hospital 1.30 L.750.00 L.1,000.00 General office 1.68 L.750.00 L.1,000.00 MEDIUM-LOW IMPACT LAND USES Hotel 2.44 L.250.00 L.750.00 General commerce 2.82 L.250.00 L.750.00 Secondary school 3.47 L.250.00 L.750.00 MEDIUM IMPACT LAND USES Primary school or others 5.05 L.150.00 L.350.00 Medical clinic 5.58 L.150.00 L.350.00 Gymnasium or other areas for group recreation 6.20 L.150.00 L.350.00 Cinema or other areas with seated spectators 6.63 L.150.00 L.350.00 MEDIUM-HIGH IMPACT LAND USES Restaurant 8.06 L.100.00 L.200.00 Supermarket 9.29 L.100.00 L.200.00 Convention centers or other activities for groups or live performances 11.10 L.100.00 L.200.00 University 13.98 L. 100.00 L. 150.00 HIGH IMPACT LAND USES Convenience store 22.23 L. 50.00 L. 100.00 Fast food restaurant 28.33 L. 50.00 L. 75.00 Bank 32.12 L. 35.00 L. 75.00 All figures are expressed in trips per peak hour for each one hundred square meters (100.00m²) of useful area, dedicated to the indicated land use, understanding for that purpose what current regulations establish. In case more than one land use may be chosen, the calculation of each use shall be performed independently to determine the total amount. In case the land use is not listed in the table, the Unit for Mitigation of Impacts on Public Space shall determine the land use with the most compatible characteristics to one of the uses already included in the list.

A municipal account shall be created, into which contributions for traffic mitigation and fees corresponding to the traffic mitigation process shall be deposited, allocated exclusively for the financing of road works and the operation of the Unit for Mitigation of Impacts on Public Space.

The Municipal Mayor is authorized to approve through Agreement the corresponding regulatory provisions for this rate. CHAPTER XI PERMIT FOR EXTRACTION OR EXPLOITATION OF RESOURCES

Without prejudice to the provisions of this Plan, the Municipal Environmental Management Unit shall authorize the Permit for Extraction or Exploitation of Resources in accordance with the following provisions:

• a)

  For the permit for manual material exploitation referred to in the activity described in Article 33 of this Plan of Fees, ONE HUNDRED LEMPIRAS MONTHLY (L.100.00) shall be paid without prejudice to the prohibition of extracting sand and stone from the riverbed within the urban perimeter of the cities of Tegucigalpa and Comayagüela.

• b)

  The use of explosives to develop this activity is not permitted unless the interested party demonstrates that their use will not endanger the safety of persons and property and that, moreover, obtains the respective authorization from the competent offices.

• c)

  The extraction of sand, earth and stone from the riverbed, streams and the surroundings of dams and streams that cross or are located within the perimeter of the Municipality of the Central District is prohibited without a special permit issued by the UGA, respecting the protection margins established in Art. 10 of Decree No. 36-2010 of April 22, 2008 containing the Law for the Creation of the National Commission for River Desilting (CONADER), which prohibit authorizing the extraction of material at a distance of less than two hundred (200) meters upstream and two hundred (200) meters downstream, which shall be the protection margin of bridge heads or supports, except for sewage systems larger than sixty (60) inches and bridge boxes. Contravention of this prohibition shall be sanctioned with a fine of not less than two thousand Lempiras (L.2,000.00) nor greater than five thousand Lempiras (L.5,000.00) and the total seizure of the extracted material, in the case of the use of machinery the fine shall be ten thousand Lempiras (L.10,000.00) and the seizure of the vehicle and extracted material. CHAPTER XII CEMETERIES

It is the responsibility of the Municipality through the Department of Public Order, to authorize the sale of plots of public cemeteries and any private cemetery operated by the Municipality. The interested party shall pay the corresponding value in authorized banking institutions and subsequently shall register it with the Municipal Secretary. The use of plots in public cemeteries is free for the population, however, when it is desired to carry out any type of construction it is necessary to acquire property rights. Property rights in public cemeteries: The plot has an area of 1 meter wide by 2.50 meters long, and shall be charged at the following values: a) In the General Cemetery: At Sipile and Divino Paraíso: ¼ plot for L. 400.00 ¼ plot for L. 300.00 ½ plot for L. 700.00 ½ plot for L. 500.00 ¾ plot for L. 1,000.00 ¾ plot for L. 700.00 One plot L. 1,300.00 One plot for L. 900.00 DURAZNO CEMETERY ¼ OF PLOT L. 400.00 ½ PLOT L. 700.00 ¾ PLOT L. 1,000.00 COMPLETE PLOT L. 1,300.00 b) Building permits for slabs or vaults in accordance with design approved by the Construction Control Management, in public cemetery: L 200.00 c) Permits for installation of crosses: L 50.00 d) Permits for construction of railings, niches or deposits: L 200.00 each and up to a maximum of 6 niches above ground level. e) Permits for construction of mausoleums or chapels: L 300.00 f) For each exhumation and complying with the provisions of the Secretary of Health in public and private cemetery: L 800.00 g) Any type of certification that the cemetery administrator issues: L 150.00 CHAPTER XIII MARKETS, SALES STALLS, TEMPORARY VENDORS AND INFORMAL VENDORS

In all matters concerning markets, sales points, and temporary vendors, the Special Regulation on these matters shall apply, as well as other provisions approved by the Municipal Corporation, in accordance with current laws.

The operation of markets in the capital city constitutes a public service, the provision of which shall be carried out, regulated, and supervised by the Management of Public Order in accordance with what is established in the corresponding Markets Regulation.

Temporary informal vendors shall pay a single fee of twenty (20) lempiras daily or six hundred (600) lempiras monthly. This fee corresponds to the provision of cleaning, security, and administrative services for informal vendors. No vendor association is authorized to charge fees for occupied spaces and other services provided to the Municipality. The ordering and control of these vendors is regulated by Agreement No. 134-02 of November 7, 2002. The Management of Public Order, through the Division of Permits and Street Vendors, shall exercise control over informal commercial activity (street vendor, temporary vendor, occasional vendors, stationary vendors, etc.) in public spaces of the Central District, as well as the cleaning, security, and organization thereof. The ordering and control of these vendors is regulated by the Instruction for Control and Organization of Informal Vendors.

The Management of Public Order shall submit monthly to the Department of Finance and Administration a report containing a breakdown of the income collected by said Management for each of the areas under its charge.

In the zones that the Municipal Corporation determines, street sales of any nature shall not be permitted. Notwithstanding, the Municipal Corporation may expand, restrict, or modify the limitations of permitted zones. CHAPTER XIV SERVICE OF THE SLAUGHTERHOUSE

The slaughter of livestock of any kind within the jurisdiction of the Municipality of the Central District shall only be permitted at the plant of the Metropolitan Meat Processing Company (PROMDECA), and the user of this service must pay, in addition to the livestock tax, the rates established by the Board of Directors of PROMDECA. No meat slaughtered outside the plant may enter the markets of the city. In special cases, when the meat comes from slaughterhouses authorized by the Agricultural and Livestock Health Service (SENASA) of the Department of Natural Resources and Environment (SERNA), entry permission shall be granted upon presentation of the Operating License issued by the Municipal Municipality of the place of origin. The Management of Public Order, in conjunction with the Department of Municipal Justice, shall ensure compliance with what is established in this chapter, being authorized to seize the product in case of violation, which shall be disposed of for charitable purposes subject to SENASA inspection certifying its quality for consumption. Residents of the villages comprising the Municipality may slaughter livestock for family consumption or for exclusive sale in their own village, with prior permission granted by the Municipal Department of Justice and with the authorization of the Auxiliary Mayor of the place and payment of the tax established in Article 82 of the Law of Municipalities.

The Department of Municipal Justice may issue permits to transport live animals and livestock from one location to another (cattle, equine, porcine, bovine, etc.), subject to payment in any of the financial institutions authorized at the rate of twenty-five (L. 25.00) per head of large livestock, twenty (L. 20.00) per head of small livestock, and fifteen (L. 15.00) for each offspring within the municipal boundary. Livestock originating from any other municipality with a bill of sale and purchase guides are excepted. CHAPTER XV CERTIFICATIONS, PROOF OF RESIDENCY, TRANSCRIPTIONS AND OTHER SERVICES

In the various proceedings and acts that the taxpayer may conduct before the Municipality and its departments, the following shall be charged: Description Lempiras 1) For the issuance of proof of residency, transcriptions and certifications, as well as the replacement thereof. 150.00 2) For the authorization of legal books that merchants must keep by law. 500.00 3) For the authorization of financial statements in electronic form. 1.00 per page 4) For each replacement of Operating Permits. 300.00 5) For the Registration Ballot of Residents in the R.N.P. 400.00 6) For the Registration Ballot of Naturalizations in the R.N.P. 500.00 7) For the processing of marriages based on Agreement No. 3424 of 4/11/88 for nationals. 350.00 8) Marriage permission for foreigners. 3,000.00 9) For the Authorization Ballot for marriages celebrated by Notaries. 500.00 10) For each field inspection to resolve files, issue opinions, issue authorizations, excepting from this charge those categorized as small businesses according to Corporate Agreement number 096 contained in the Minutes dated May 4, 2006. 200.00 11) For declaration of roadway feasibility for operating permits or construction of establishments for commercial, industrial, or service use. 300.00 12) For each opinion of the Municipal Department of Justice, excepting from this charge those categorized as small businesses, according to Corporate Agreement number 096 contained in the Minutes dated May 4, 2006. 200.00 13) For Ballot to celebrate marriages at home. 500.00 14) For obtaining documentation for the intention to urbanize. 500.00 15) For each zoning certificate issued by the Urban Planning Section. 15.00 16) For ballot for the processing of qualification procedures for exemption from municipal taxes and fees. 500.00 17) Delivery of digital information (per unit). 20.00 18) Reproduction of photocopies of documents (per page). 1.00 19) For ballot of permission for non-profit party authorized by the Municipal Department of Justice. 100.00 20) For ballot of permission for profit-making party authorized by the Municipal Department of Justice, except for the exceptions that said department determines. 500.00 21) For the processing of requests for full ownership. 400.00 22) For processing of acts releasing encumbrances. 300.00 23) For the processing of any administrative file before the Municipality. 150.00 The Municipal Mayor, or in his absence the Vice Mayor, is authorized to establish by agreement the rates and/or administrative fees that are necessary to charge for procedures and processes not previously contemplated.

Owners or holders of real property and other beneficiaries of the execution of public works such as construction of urban roads, drinking water supply services, sewers, electrical network installations, environmental sanitation, repaving, and, in general, any work carried out by the Municipality for the benefit of the community, shall pay the contribution for improvements. For the application of the contribution for improvements, the following shall be observed:

• 1)

  To determine the method of recovery of the work by the beneficiaries, the Municipality shall establish in a Special Regulation approved by the Municipal Corporation the general conditions regarding time periods, interest, surcharges, legal actions for recovery and/or any other economic or social factor, taking into account the nature and total cost of the work.

• 2)

  Works developed by the Municipality under the propulsion method shall be governed by what is provided in the Special Regulation approved in this matter by the Municipal Corporation.

• 3)

  The contribution affects the area of influence of the works and falls upon all benefited properties, considering as such the surface area of land or floor, with all that is built, nailed, planted on or adhered to the ground, whose existence and essential elements are recorded in the cartographic document derived from a properly registered territorial survey in the Cadastral Management, or in a title of ownership as a default.

• 4)

  The payment of the contribution is the responsibility of the owners of the properties, their heirs, administrators, legal representatives, executors of wills, guardians and curators of property, or the persons who acquire them under any title. In case of changes in the ownership or possession, the new acquirers shall be jointly and severally liable with the previous ones. When a property belongs to several persons, the obligation falls upon all of them in a joint and subsidiary manner.

The Contribution for Improvements shall be charged in accordance with the following rules:

• 1)

  When the investment and execution of the work is carried out by the Municipality.

• 2)

  When the work is financed by or through the Municipality.

• 3)

  The Municipality may initiate the collection of the contribution even if the work has not been started or completed, provided there is prior agreement with the majority of neighbors, in cases such as the need for recovery due to emergency or work needs, and when required to anticipate payments or amortize some financing of the same work.

• 4)

  Payment made by those benefited from the work may be made in the Treasury, in Banking Institutions or other entities that the Municipality determines, and under the methods agreed upon by the Corporation.

• 5)

  Funds from the Contribution for Improvements shall serve exclusively to cover costs, including the payment of financing obtained for that purpose, as well as for the construction of new works that benefit the citizenry.

• 6)

  Failure to pay the contribution within the agreed time periods generates a default surcharge equal to the national active banking interest rate.

• 7)

  When the execution of works benefits natural persons in their capacity as users thereof, as in the case of bridges, boulevards and other similar structures, a toll charge may be established under the conditions determined by the respective regulation approved by the Municipal Corporation. What is not established in these provisions shall be subject to what is provided in the Law of Contribution for Improvements, the Law of Municipalities and its General Regulation.

In order for a business, commercial establishment, or non-profit institution to operate within the municipal term of the Central District, it is mandatory that the owners or their legal representatives previously obtain the Operating Permit, which must be renewed in the month of January of each year. For the issuance of an operating permit for a business, it is a requirement that the owner or legal representative be current with all municipal taxes, fees, final audit adjustments, and contracts, and non-compliance with this shall result in the denial or cancellation of the operating permit. To obtain this permit, the owner or owners of the business, establishment, or institution must be current with all municipal taxes and fees, final audit adjustments, contracts, and any other tax provided for in special laws. For this purpose, the personnel of the Municipal Municipality shall conduct the corresponding prior investigation to the delivery of the operating permit. Non-compliance with the above shall result in the denial or cancellation of the operating permit, without prejudice to the closure of the business or enterprise. a) The operating permit shall be requested accompanied by a sworn declaration of estimated sales expected to be made in the first quarter of operations for companies and a monthly payment of one hundred fifty lempiras (L. 150.00) in the case of micro and small enterprises. If it is businesses that are starting operations, the latter will not be charged an opinion fee during the first year of operation, nor will the adjustment for income declared be applied in the year immediately following the opening of the business; in other cases, the sworn declaration of income from the previous year shall serve as the basis. In subsequent years, the sworn declaration of income corresponding to the income from the previous year shall be made. The Municipal Mayor or, in his absence, the Vice Mayor, through the Department of Citizen Service shall have the authority to unify and simplify procedures with the various municipal departments for the processing and obtaining of the operating permit in such a way that the taxpayer or applicant visits the fewest possible offices. b) For obtaining and renewing operating permits for businesses, including main establishments and branches, except for the exceptions provided for in this Plan, natural and legal persons shall pay annually according to their declared or verified income, in accordance with the following table: Income Range in Lempiras Annual Rate Operating Permits in Lempiras Up to 100,000.00 1 From 100,000.01 to 300,000.00 250 From 300,000.01 to 600,000.00 375 From 600,000.01 to 1,000,000.00 500 From 1,000,000.01 to 2,000,000.00 600 From 2,000,000.01 to 5,000,000.00 850 From 5,000,000.01 to 10,000,000.00 1,100 From 10,000,000.01 to 15,000,000.00 1,500 From 15,000,000.01 to 20,000,000.00 1,700 From 20,000,000.01 to 30,000,000.00 2,000 From 30,000,000.01 to 40,000,000.00 2,500 From 40,000,000.01 to 60,000,000.00 2,700 From 60,000,000.01 onwards 3,000 c) The Department of Citizen Service shall establish in accordance with its regulation the requirements for requesting the operating permit for businesses for the first time. For permits for billiard halls, carambolas, electric manual or automatic gaming machines, the owner shall pay the amount of three hundred (L. 300.00) monthly per unit, and for the operating permit for commercial foosball shall pay fifty lempiras (L. 50.00) monthly. d) Offices of all types of service sales, charitable institutions and non-profit legal entities, and other natural and legal persons not subject to the Tax on Industry, Commerce and Services shall pay for the initial or renewal operating permit, an annual rate as follows: 1. Churches, ministries, and religious institutions in general: ONE LEMPIRA (L. 1.00). 2. Primary and secondary level Educational Institutions FIFTEEN THOUSAND LEMPIRAS (L. 15,000.00) for each educational center. 3. Higher level Educational Institutions (universities) THIRTY THOUSAND LEMPIRAS (L. 30,000.00) for each educational center. 4. Social assistance or charitable centers FIVE THOUSAND LEMPIRAS (L. 5,000.00). 5. Local development, community, social centers and similar TEN THOUSAND LEMPIRAS (L. 10,000.00). 6. Financial development organizations and similar THIRTY THOUSAND LEMPIRAS (L. 30,000.00). 7. Public law institutions ONE THOUSAND FIVE HUNDRED LEMPIRAS (L. 1,500.00). 8. Research centers FIVE THOUSAND LEMPIRAS (L. 5,000.00). 9. Cultural or sports centers THREE THOUSAND LEMPIRAS (L. 3,000.00) e) For the operation of commercial jukeboxes, owners shall pay monthly four hundred lempiras (L. 400.00) for each jukebox without prejudice to compliance with operating ordinances. f) Owners of businesses where slot machines or electronic bingo operate shall retain a percentage of five percent (5%) of prizes whose amount exceeds three thousand lempiras (L. 3,000.00). Said retention shall apply to the total amount of the prize corresponding to be paid to the winners thereof and not only to the amount exceeding three thousand lempiras (L. 3,000.00). The values from said retentions must be remitted in favor of the Municipality within the first ten days of the month following the month in which the retentions were made. Non-compliance with what is established in this subsection shall be sanctioned with the temporary closure of the business or the cancellation of the operating permit when applicable. For declaration purposes, owners of said businesses shall do so through a special declaration together with the declaration of the Tax on Industry, Commerce and Services, using as the basis for the declaration the values paid in the previous year. Failure to declare and make the first payment in January shall result in the operating permit not being issued. For proper control of this matter, the Municipality shall conduct semi-annual audits. g) For operating permits for gambling game tables including table or counter bingo in hotels, casinos or any other tourist or non-tourist center, owners shall pay the amount of four thousand lempiras (L. 4,000.00) annually. h) Bars, taverns and liquor stores shall pay for the operating permit or its renewal, in accordance with the following monthly rate: With annual income up to L. 250,000.00 L. 200.00 From L. 250,000.01 to L. 350,000.00 L. 1,500.00 From L. 350,000.01 to L. 500,000.00 L. 3,000.00 From L. 500,000.01 onwards L. 5,000.00 j) The Department of Citizen Service is authorized to issue, in special cases, without prejudice to existing zoning and land use, operating permits for administrative offices and tax addresses, solely for notification, citizenship establishment, and receipt of correspondence, provided it is located in the interested party's residence, being an inescapable condition that it does not generate vehicular impact of any kind, does not cause nuisance to the surroundings, does not serve the public, and does not install a sign. The authorization does not constitute a modification of land use or zoning, and the permit may be revoked when the Department of Citizen Service deems it appropriate.

Any temporary activity with a maximum duration of three months, of a commercial, industrial, or services nature, acts or performances of any kind open to the public, conducted by natural or legal persons of any class, national or foreign with or without profit purposes, shall previously require temporary operating permission from the Municipality, which shall be processed and issued by the Tourism Management. Based on the procedure and calculation made by the Tourism Management, the applicant shall proceed to make the corresponding payment in the Department of Citizen Service. Temporary licenses shall be extended in accordance with the following rates:

• a)

  Occasional gambling games in amusement parks, patronal or seasonal fairs shall pay per month or fraction of a month FOUR THOUSAND LEMPIRAS (L. 4,000.00) for each gambling game machine or table, including bingo of any type.

• b)

  Temporary Operating Licenses for carousels and other electric and mechanical games with profit purposes: 1. For national owners, for each apparatus they shall pay L. 300.00 daily. 2. For foreign owners, for each apparatus they shall pay L. 700.00 daily.

• c)

  Temporary Operating Licenses for Circuses: in addition to what is established in subsection d) of this article: 1. For national owners, for each performance L. 300.00. 2. For foreign owners, for each performance L. 1,100.00 d) Temporary operating licenses for cultural events or concerts both national and international of all kinds, presentation of theatrical works and similar artistic events, musical festivals, boxing, professional wrestling, installations of bingo or cardboard lottery, shows of all kinds with trained animals and others not specified in this Plan, shall pay ten percent (10%) of gross or total income. Only 5% of the aforementioned income shall be charged when artistic presentations are developed for charitable purposes. e) Authorization of raffles without charitable purposes and for purposes of commercial promotion to customers or product sales: 10% of the raffled commercial value. f) Temporary Operating Licenses for National and International Concerts of all kinds shall be charged according to the following table at the time of requesting the permit from the Municipality. NATIONAL CONCERTS A Lps. 20,000.00 B Lps. 15,000.00 C Lps. 10,000.00 D Lps. 5,000.00 E Lps. 2,500.00 INTERNATIONAL CONCERTS A Lps. 350,000.00 B Lps. 250,000.00 C Lps. 220,000.00 D Lps. 175,000.00 E Lps. 120,000.00 The classification (A, B, C, D, E.) corresponding to this table of International Concerts shall be made in accordance with the type of artist, production, venue, promotion, and capacity. When International Concerts are developed for charitable purposes, subject to investigation conducted by the Municipal Municipality of the Central District, a maximum of 10% of the total permit value shall be granted.

Natural or legal persons, non-profit institutions, and any other entity operating a business or commercial establishment and offices of any kind without the corresponding operating permit shall have a fine applied in accordance with income in accordance with the following table: INCOME UP TO FINE 1.00 to 50,000.00 500.00 50,000.01 to 100,000.00 1,000.00 100,000.01 to 300,000.00 2,000.00 300,000.01 to 500,000.00 3,000.00 500,000.01 to 1,000,000.00 4,000.00 1,000,000.01 onwards 5,000.00 If one month has elapsed in the case of permanent activities and five days in the case of temporary activities after the aforementioned sanction has been imposed without acquiring the respective permit, the fine imposed shall be doubled and closure shall occur until the legal situation is normalized. In case the violation persists for thirty calendar days, the business or activity shall be permanently closed or shut down.

Natural or legal persons, prior to the procedure to obtain permission to carry commercial firearms; revolvers of all types, short caliber, light rifles of all types, long caliber, and shotguns of long and shortened caliber, as well as any other legally permitted firearm, shall pay a fee for registration or change of owner of three hundred lempiras (L. 300.00), to be renewed every four years. For persons residing in the Central District, only the permit extended by this Municipality shall be valid. It is the responsibility of the Municipal Department to maintain the Firearm Registry, through the corresponding department.

The Municipality is responsible for the ownership, use, regulation, and administration of urban roads; it is the responsibility of the Department of Territorial Organization to supervise compliance with the provisions of this Plan and other current regulations on the matter. Likewise, it is the responsibility of the Urban Mobility Management to authorize the use of public roads for temporary activities of a sports, cultural, religious, or any other lawful nature in accordance with the Police and Coexistence Social Law. In addition, it is responsible for road signage, installation and maintenance of traffic signals, and establishment of traffic directions. The Urban Mobility Management, through the Transportation Engineering Section, shall grant permission for the placement of buoys, speed bumps, mechanical arms, surveillance booths, loading and unloading parking, urban and interurban public transportation, collective taxi stands, minibuses, and other uses within the metropolitan area. For the granting of the respective authorizations, coordination shall be made, as applicable, with the National Traffic Management in accordance with the Traffic Law. The request for the permit and the respective payment must be made during the month of January.

These permits and their renewal shall be paid in accordance with the following schedule:

• a)

  Light cargo and unloading vehicles of the pick-up type, small trucks, sedans, minibuses, small buses and similar vehicles, SIX HUNDRED LEMPIRAS (L.600.00) annually.

• b)

  Heavy cargo and unloading vehicles with two axles of the truck type, vans and similar vehicles, and value transport vehicles, SEVEN HUNDRED FIFTY LEMPIRAS (L.750.00) annually.

• c)

  Heavy vehicles with three or more axles for cargo and unloading of the type van, trailers, tractor units and similar vehicles, NINE HUNDRED LEMPIRAS (L.900.00) annually. The parking authorization for these vehicles shall contemplate hours from 7:00 p.m. to 6:00 a.m. For each temporary parking permit during the hours indicated in the preceding paragraph, ONE HUNDRED LEMPIRAS (L.100.00) daily per unit shall be charged, except in cases of qualified donations by the Municipality's administration.

• d)

  For parking permit of collective taxi stands, six hundred lempiras (L.600.00) per unit shall be charged annually; for intercity minibuses and buses, seven hundred fifty lempiras (L.750.00) per unit shall be charged annually, a rate that includes the right to twenty-five (25) linear meters of parking. In each permit, the Transportation Engineering Section shall order the parking modalities for each motor vehicle, in accordance with the corresponding Municipal Transit Regulation and ordinances issued by the Corporation. -- For authorization for the placement of road signs in residential zones that request them for speed control, prior inspection, five hundred lempiras (L.500.00) shall be paid. The same concept shall apply for the installation of curb tubes in sidewalks and public roads, paying one hundred lempiras (L.100.00) for each one. -- For the installation of mechanical arms for vehicle control, one thousand eight hundred lempiras annually (L.1,800.00) shall be charged. The same amount shall be charged for structures to establish height limits for the circulation of certain vehicles. These amounts may also be paid on a semi-annual basis, paying their equivalent with respect to the annual amount. For the installation of properly regulated surveillance booths, five hundred lempiras annually (L.500.00) shall be charged. In the case of the authorizations established in subsections a) and b), when for the first time, their equivalent value shall be charged with respect to the year, according to the date of presentation when applicable.

The Urban Mobility Management shall notify the National Transit Directorate of all permits requested that are not withdrawn within thirty (30) days following their authorization, in order that vehicles executing the respective activity may not carry it out until they obtain said permit. In case of non-compliance, the Municipality shall sanction the violator and the Transit Police shall confiscate the unit.

The obtaining of the respective permit during the month of January of each year is mandatory; otherwise, the violator shall be liable to the fine established in this Plan. Taxis, as well as the owners of vehicles that execute parking for exclusive use, cargo and unloading, or the boarding or disembarking of passengers without the corresponding permit, shall be sanctioned with a fine equivalent to fifty percent (50%) of the amount to be paid for this concept, and additionally, they must immediately request the permit in question, which shall be granted and charged for the full year period. In the event that natural or legal persons install cones, tires, signs, and other items used as signage to reserve parking spaces, these shall be confiscated and shall be returned to their owners after payment of a fine of one hundred lempiras for each one (L.100.00).

Carrying out cargo and unloading activities contrary to the provisions of the regulation, in which schedules and capacity of heavy vehicles in the urban area are established, shall be sanctioned as follows:

• a)

  Minor Infraction - Fine of one thousand two hundred lempiras (L.1,200.00)

• b)

  Serious Infraction - Fine of three thousand lempiras (L.3,000.00)

• c)

  Very Serious Infraction - Fine of six thousand lempiras (L.6,000.00)

The Urban Mobility Management is authorized to confiscate vehicles, scrap, and other goods and objects that are abandoned in the public thoroughfare, or those that, even though they have a known owner, are parked in the path of vehicles and pedestrians. The driver of the vehicle that is parked in places where the curb of the sidewalk is painted yellow or in places where the curb is painted green when the use is residential, shall also be sanctioned, provided that the resident does not permit it; in the case of the curb painted blue, it shall be designated to allow parking for any private or individual vehicle type or similar vehicles that carry out loading and unloading activities. Likewise, the Urban Mobility Management is authorized to, through the use of tow trucks or other transport mechanisms, transfer the vehicles, scrap, goods or confiscated objects to property sites that it enables, transferring the costs incurred to the owner of said goods or objects, plus a fine of four hundred lempiras (L.400.00) for vehicles parked in prohibited or restricted places for this purpose; on the other hand, drivers of vehicles parked on sidewalks in any sector of the Central District shall be sanctioned with three thousand lempiras (L.3,000.00). Likewise, the amount of one hundred lempiras (L.100.00) shall be charged for each calendar day in which the confiscated goods remain in the Municipality's storage, with the fee for the day on which the owner retrieves the confiscated good or object being counted within the fine. The Road Management Department is instructed to carry out the pertinent negotiations so that the charge for tow truck use or removal mechanism referred to in the preceding paragraph shall in no way exceed eight hundred lempiras (L.800.00). Upon the expiration of a period of sixty (60) calendar days counted from the day of confiscation of the vehicle, scrap, goods or object, the auction or sale of the same shall be proceeded with. For these purposes, the Urban Mobility Management shall proceed as follows:

• a)

  It shall make the pertinent coordinations with the Executive Revenue Directorate (DEI) in matters related to vehicles, notifying it of the procedure being followed, as well as of the removal of the vehicle from the database in case it is auctioned as scrap, or notifying of its transfer.

• b)

  In any case, it shall make a publication in a mass media and written publication within the municipal term, which shall contain the auction notice, the description of the articles or goods to be auctioned, their value, and the date and time of the auction.

• c)

  On the day of the auction, it shall be carried out in the presence of a Commission made up of representatives from the Collections and Financial Control Management, Internal Audit, Legal Services Management, the Municipal Property Office, and the Municipal Secretariat. An official record of the proceedings shall be drawn up and signed.

• d)

  Bids shall be received only by cashier's check.

• e)

  The funds collected shall be deposited on the same day in the special account opened for these purposes. The deposit receipt shall be sent to the Collections and Financial Control Management for accounting record.

• f)

  For each award, the natural or legal person who acquires it must sign the act, transfer, or receipt that corresponds, attaching the documents required.

Prior to carrying out the auction, the Urban Mobility Management shall notify the Municipal Property Offices so that it registers the goods that correspond within the Municipality's asset inventory. Once the auction has been carried out, it shall remove from the asset inventory those goods that have been auctioned and awarded, registering the income for each asset.

Once the corresponding costs are covered, the Finance and Administration Department shall allocate the difference of the funds to an account to defray the cost of maintenance and placement of new traffic lights on public roads, street signage, road safety education programs, and others that may be required by the Urban Mobility Management. TITLE VIII OF OTHER FEES CHAPTER I FEE FOR USE OF MUNICIPAL SPACE

Cellular telephone companies that are located within the municipal space belonging to the jurisdiction of the Central Municipality shall pay annually the amount of one hundred thousand lempiras (L.100,000.00) per tower and ten thousand lempiras (L.10,000.00) per antenna. The Citizen Service Management is authorized to create the procedure for the collection established in the preceding paragraph. This payment must be made within the month of January of each year. CHAPTER II SECURITY FEE

A fee shall be charged as a contribution to public safety and community coexistence in order to strengthen the logistics, operations, personnel numbers, and other capacities of the Municipal Police of the Central District. For the administration and execution of the funds collected, a special account shall be created to serve the purposes and objectives of this fee. This contribution shall be distributed in direct proportion to the different levels of sales on which the Commerce, Industry, and Services Tax is paid, and the fee shall be as follows: Sales Income Levels Monthly Contribution per Taxpayer From 0.00 to 100,000.00 10.00 100,000.01 to 600,000.00 20.00 600,000.01 to 1,000,000.00 60.00 1,000,000.01 to 2,000,000.00 90.00 2,000,000.01 to 5,000,000.00 400.00 5,000,000.01 and above 600.00 This fee shall be collected monthly and together with the Commerce, Industry, and Services Tax. Businesses included within the historic center and/or in those areas of the capital where the process of eviction of street vendors has been carried out shall pay the public safety fee in order to prevent illegal placement of the same, in accordance with the following table: Sales Income Levels Monthly Contribution per Taxpayer From 0.00 to 100,000.00 75.00 100,000.01 to 600,000.00 370.00 600,000.01 to 1,000,000.00 800.00 1,000,000.01 to 2,000,000.00 1,200.00 2,000,000.01 to 5,000,000.00 1,600.00 5,000,000.01 and above 2,600.00 This fee shall be collected monthly and together with the Commerce, Industry, and Services Tax.

Legal persons not subject to the Commerce, Industry, and Services Tax shall pay a fixed security fee equivalent to one thousand five hundred lempiras (L.1,500.00). CHAPTER III FEE FOR LIVESTOCK BRAND REGISTRATION

Livestock branding irons must be registered in the Secretariat and shall be paid as follows: First-time registration................................L. 150.00 Registration renewal....................................L. 75.00 Brand marks..................................................L. 75.00 Authorization to make branding irons..............L. 50.00 TITLE IX FINES AND SANCTIONS

The verification that a declaration with false information has been presented with the purpose of evading municipal tax shall be sanctioned with a fine equivalent to one hundred percent (100%) of the evaded tax or that was intended to be evaded, without prejudice to the payment of the tax and the compliance with other sanctions typified in the respective laws.

The Municipality shall sanction the different violators as follows:

• a)

  The owners of all classes of animals that circulate in public thoroughfares, in plazas, and in other public places shall be sanctioned with a fine of five hundred lempiras (L.500.00) per head. On unpaved main roads, fifty percent (50%) of the fines established in the previous classification shall be charged. Access and penetration roads are excluded. If the owner reoffends by allowing the vagrancy of animals of his property, the amount of the fines cited shall be doubled. The official or employee who fails to apply the fine at its correct value for reoffense shall be jointly liable for its payment.

• b)

  For construction of speed bumps on paved public roads, a fine of L.100.00 per linear meter shall be imposed without prejudice to demolition of the speed bump and repair of the damage caused to the street.

• c)

  For construction of platforms for garage entrance without the respective permit, a fine of one thousand lempiras (L.1,000.00) shall be imposed, without prejudice to demolition of the platform and repair of the damage caused to the street or sidewalk.

• d)

  Taxis, as well as the owners of businesses that execute parking for cargo or unloading in Tegucigalpa or Comayagüela, without the corresponding permit, shall be sanctioned with a fine equivalent to fifty percent (50%) of the amount to be paid for this concept, and additionally, they must immediately request the permit in question, which shall be granted and charged for the full year period.

• e)

  For using without permits chains, fences, buoys, mechanical arms, or similar items that obstruct vehicular or pedestrian traffic, a fine of five hundred lempiras (L.500.00) shall be imposed.

• f)

  For driving vehicles into pedestrian streets to perform any type of activities without authorization, a fine of five hundred lempiras (L.500.00) shall be imposed.

• g)

  For damage caused to the surface of the street pavement, whether for washing vehicles, installation of obstacles, or others, a fine of five hundred lempiras (L.500.00) shall be imposed each time as required.

• h)

  For installation of curb tubes in the public right-of-way without authorization, a fine of one hundred lempiras (L.100.00) per tube shall be imposed, without prejudice to their removal.

• i)

  For occupation of the public right-of-way to perform any type of event without proper authorization, a fine shall be imposed as follows: 1) For obstructing vehicular traffic, a fine of L.2,000.00 2) For obstructing pedestrian traffic, a fine of L.1,000.00 j) Vacant urban lots without fencing, abandoned or deteriorated dwellings shall pay a monthly fine of seven hundred fifty lempiras (L.750.00). k) Trucks transporting trash and/or construction materials shall pay a fine of five hundred lempiras (L.500.00) each time the unit is found without a covering. l) Lack of sidewalks or damaged sidewalks in paved zones; the owner or occupant at any title shall be sanctioned with a monthly fine of fifty lempiras (L.50.00) per linear meter of sidewalk, without prejudice to its construction or repair. m) For conducting a light show or fireworks display without authorization from the Municipal Department of Justice, a fine of five thousand lempiras (L.5,000.00) shall be imposed. n) For throwing trash, debris, or waste of all kinds in vacant lots, roads, streets, alleys, riverbanks, ditches, or any other public or private place, a fine of one thousand lempiras (L.1,000.00) shall be imposed each time, without prejudice to the violator removing the discarded material. o) For parking vehicles on sidewalks or in unauthorized areas, a fine of seven hundred lempiras (L.700.00) shall be imposed each time as required, without prejudice to the payment for tow truck service for the removal of the vehicle from the violator owner's property, in coordination with the National Transit Directorate. p) For washing vehicles in the public right-of-way, five hundred lempiras (L.500.00) each time as required. q) For transporting beef of cattle or smaller livestock to the Central District without the respective health and safety measures, seizure of the product shall be proceeded with. r) For installation of tubes, chains, or similar items in communal parking areas of residential developments, a fine of three hundred lempiras (L.300.00) per tube, chain, or similar item shall be charged, without prejudice to their removal at the expense of the violator. s) Failure to comply with citations from the Urban Construction Control Management shall be sanctioned with a fine of two hundred lempiras (L.200.00) the first time, five hundred lempiras (L.500.00) for the second occasion, and one thousand lempiras (L.1,000.00) for failure to comply with the third citation. t) Buses and taxis operating stands without authorization from the Transportation and Road Department shall be fined one thousand lempiras (L.1,000.00) per unit; the same shall be confiscated with the assistance of the National Transit Directorate. u) Every workshop dedicated to automotive repair activities must keep vehicles within the assigned establishment. For obstructing and using public sidewalks as an extension of automotive repair workshops with any type of vehicle, a fine of L.1,000.00 shall be applied. v) The confiscation of the vehicle or vehicles shall be imposed on workshops that use public sidewalks and green areas as an extension of their workshop; workshops that reoffend more than 2 times shall be subjected to a fine of five thousand lempiras (L.5,000.00), without prejudice to the confiscation of the vehicle and the closure of the business.

The Urban Construction Control Management may order the suspension, closure, or demolition of construction works for the following reasons:

• a)

  Incurring in falsity in the data entered in the permit request.

• b)

  Executing a work without the proper license or approval, or with special, falsified, or altered permits.

• c)

  Executing a work without a director, when one is necessary.

• d)

  Executing works that endanger the life or property of persons without proper precaution.

• e)

  Preventing Municipal personnel from carrying out their functions.

• f)

  Using a construction that has been declared high-risk without the authorization for use or occupancy certificate, and g) Building in zones declared Cultural Heritage or buildings designated as National Monuments, without the corresponding authorization from the Honduran Institute of Anthropology and History. h) At the request of the owner, the Municipality may grant a period to correct the deficiencies that motivated the suspension or closure. Upon expiration of the granted period without correcting the deficiencies, both the owner and the builder shall be sanctioned.

The Municipality shall sanction the following acts:

• a)

  Obstruction of traffic on streets, boulevards, roads, or public places by motor vehicles; a fine of two thousand lempiras (L.2,000.00) daily shall be imposed;

• b)

  Obstruction of traffic through destruction of the road or construction of any kind; a fine of five hundred lempiras (L.500.00) shall be imposed, independent of whether the violator restores passage by leaving the road in perfect conditions.

• c)

  Urban transport units must inform their passengers not to throw trash in the street, and when this occurs, drivers shall be sanctioned with fifty lempiras (L.50.00) each time.

The failure to pay the fines and sanctions established in this Plan de Arbitrios generates a surcharge of interest equal to the highest prevailing active interest rate in the national financial system, plus two percent annually. TITLE X OF CONTROL, ADMINISTRATION AND INSPECTION CHAPTER I OF THE DECLARATION

Taxes are satisfied through sworn declarations that must be presented by taxpayers. The Property Tax is excepted, in which the determination is made based on data contained in the Cadastre or in declarations presented by owners of non-cadastered properties. In the livestock tax, the declaration is satisfied through the payment receipt issued by the Municipal Treasury or by banking institutions.

For purposes of the preceding article, the Municipality shall make available to taxpayers the corresponding forms. The lack of forms does not exempt taxpayers from the obligation to present their declarations in the terms established in the Law; in this case, taxpayers may present their declarations on plain paper, containing the necessary data to determine the tax to be collected, in accordance with the information established by the Municipality. CHAPTER II OF PAYMENTS

Taxpayers subject to municipal taxes and fees may pay said taxes in advance. Provided that such payment is made entirely four or more months in advance of the legal deadline, taxpayers shall have the right for the municipality to grant them a discount of ten percent (10%) of the total tax paid in advance. Consequently, in order to be entitled to this discount, taxes must be paid no later than:

• a)

  The Property Tax in the month of April or earlier.

• b)

  The Personal Tax in the month of January or earlier.

• c)

  The Tax on Industry, Commerce and Services, in the month of September of the preceding year or earlier, when paid for the entire year, and proportionally when payment is made after this date.

• d)

  Other municipal taxes and fees must comply with a minimum of four months in advance.

Taxes, contributions, fines, services and other fees shall be paid at banking institutions and shall bear the electronic and/or manual seal of the institution where the payment is made. The Municipality must implement tax collection systems that allow for the greatest effectiveness and efficiency in its collection, through the most appropriate modern technologies, simplifying for the taxpayer the fulfillment of their obligations and guaranteeing the Municipality the security and control of the system. For these purposes, the Municipal Mayor is authorized to execute the contracts that are most convenient and economical for the Municipality, and must inform the Municipal Corporation.

General provisions regarding payments:

• a)

  Any tax contained in the Law or this Plan may be subject to the Municipality establishing its payment through monthly and advance installments.

• b)

  Any payment that the Municipality or its authorized departments order for fines or sanctions, licenses or permits, must be paid no later than ten (10) business days after notification.

• c)

  It is prohibited for Municipality departments to receive any type of payment from taxpayers.

• d)

  Once a repair, adjustment, verification or review of an obligation in favor of the Municipality becomes final, the payment period shall be three business days. CHAPTER III OF CONTROL AND INSPECTION

In the exercise of its inspection function, the Municipality, through its corresponding offices, has the authority to:

• a)

  Organize the administrative collection of taxes, fees, contributions, services and other charges.

• b)

  Control the fees set for the services it provides and other charges. The fees for these services shall be controlled and inspected through the opening of special bank accounts for each service. The Municipality's administration must submit monthly reports to the Municipal Corporation on the use of all these funds.

• c)

  Require from taxpayers the information, documents, books, contracts, payrolls, and others that are indispensable to establish tax obligations. The requests include third parties who have knowledge of the operations subject to investigation.

• d)

  Apply the tax provisions issued by the same Municipality in strict sense. For this purpose, attention shall be given to their purpose, their economic significance and the precepts of public law.

• e)

  Facilitate taxpayer compliance with tax obligations, through proper disclosure of current provisions.

• f)

  Demand payment of taxes, contributions, services and other charges that are final by implementing efficiency modalities and modern collection systems.

• g)

  Verify the content of sworn declarations, applying the analyses or investigations it deems appropriate.

• h)

  In case taxpayers do not present sworn declarations or corresponding information, estimate ex officio and by presumptive income their tax obligations.

• i)

  Impose sanctions on violators of the approved provisions in accordance with current laws, agreements or provisions.

• j)

  Attend to and resolve the inquiries formulated by taxpayers.

• k)

  Take appropriate actions as a consequence of their tax administration function.

• l)

  Establish the norms necessary to improve the administration and inspection of the municipal tax system. For these purposes, the integrated current account system organized by taxpayer must be established, including user applications making use of an information services administration.

• m)

  Any other functions that the Law or this Plan confers upon it.

The Department of Finance and Administration or the department it designates shall conduct all proceedings or investigations that are necessary and useful to carry out the examination of declarations presented by taxpayers.

In the exercise of their functions, the municipal employee must abide by the norms and instructions issued by the immediate or superior authority, being faithful in verifications or reviews and safeguarding municipal interests. In case of doubt, they shall abide by the principles of justice and equity, without violating legal norms.

Once the review is completed, the employee shall render to their immediate superior a detailed report thereof, shall express the reasons on which they base the formulation of the tax adjustment and shall clearly indicate the amount to be collected or refunded, through a credit note.

The adjustment resulting from the review shall be brought to the knowledge of the taxpayer by delivering them personally a complete copy with its grounds, or they shall be notified in the manner provided in the Administrative Procedure Law.

The date of the adjustment for all legal purposes shall be that on which it is brought to the knowledge of the taxpayer, in accordance with the preceding article.

The actions that the Municipality may have against private parties arising from tax obligations, by virtue of the Municipalities Law and subordinate norms, shall prescribe within a period of five years, being interrupted only by judicial actions. For purposes of this article, the application of prescription criteria must be requested in each particular case by the taxpayer; as long as it has not been requested, the Municipality may demand payment of what is owed. The Municipal Secretary in coordination with the Department of Finance and Administration shall establish the requirements for pertinent requests and shall develop an expedited procedure for their resolution. The Mayor or the official designated by them is authorized to resolve the petitions that private parties present regarding this provision.

The initiation, presentation, resolution, notification and use of remedies that must be followed in the processing of administrative files carried out in the Municipality of Central District must be adjusted to the provisions of the Administrative Procedures Law and the pertinent provisions of the Municipalities Law and its Regulation.

In compliance with what is set forth in the preceding article, interested parties must submit their applications, writings, statements and others that correspond, to the Municipal Secretary or to the office designated for such purposes, who must order the initial ruling based on the principles of procedural economy, celerity and effectiveness and following the terms indicated by Law for its prompt resolution. This office must likewise follow what is established in the Administrative Procedures Law to notify the interested party of any incident, lack of requirement, or any defect that the written document and documents presented may have. To admit claims, reconsiderations of appraisals, or challenges that result from the setting or calculation of any tax or sanction, the interested party must previously make payment of the respective amount set by the Municipality or reach a payment arrangement. The payment arrangement that is executed shall be subject to what is resolved as a result of the challenge or claim formulated by the taxpayer, once its resolution acquires a definitive and final character. In case the provisions of the preceding paragraph are not complied with, no remedies, claims, reconsiderations of appraisal and/or challenges that result from the setting or calculation of any tax or sanction shall be processed.

The Cadastral Management Department is authorized to admit, process, and resolve complaints, objections, or petitions related to cadastral matters filed by taxpayers in an expedited, simplified, and transparent manner. In the case of claims where the cadastral valuation exceeds seven point five million Lempiras, interested parties must substantiate their valuation through a professional registered in the Register of Appraisers of Movable and Immovable Assets maintained by the National Commission of Banks and Insurance. For better and more accurate resolution, it may be assisted by a technical advisory team or consulting body composed of organizations with which the Municipality has agreements and representatives of the community. Additionally, through the Department of Territorial Ordering, the Cadastral Management shall prepare and send a semi-annual report to the Municipal Corporation containing the requests admitted and those resolved.

Taxpayers who believe they have paid taxes, contributions, services, or other fees in excess or improperly must comply with the guidelines established by the General Management for the application of compensations and recognition of credit notes and shall present their request in writing to the Finance and Administration Department. Resolutions of these claims up to two hundred thousand lempiras (L. 200,000.00) shall be authorized by the General Management and the Finance and Administration Department. Resolutions of two hundred thousand one lempira (L. 200,001.00) and above shall be authorized additionally by the Municipal Vice Mayor. In both cases, said resolutions shall be countersigned by the official designated for this purpose by the Mayor or Vice Mayor, in his absence.

Recognition of payment in excess or improperly made shall be done by means of a credit note resolution, which shall be executed immediately and without further proceedings by the Accounting Department, which shall apply it to the payment of present or future taxes, fees, or contributions for services, municipal rights, or any other tax obligation or burden.

The Municipality may offset the debts it has with natural or legal persons in accordance with the procedure established and under the same parameters of Article 166. Without prejudice to what is established in this article, the General Management is authorized to regularize ex officio through the Income and Expense System those debts that the Municipality has with private parties and that these, in turn, have pending payment obligations with the Municipality.

All prohibitions regarding constructions, subdivisions, urbanizations, beautification, environment, zoning, and ecology shall be governed by the respective regulations.

The Municipality is the owner of every tree or plant planted in public roads; consequently, no person may fell or cut down trees without prior authorization from the Municipal Environmental Management Unit. This provision extends to trees planted on private property. In the event that a tree is authorized to be felled for special reasons, it shall be mandatory to plant at least two (2) trees in the areas designated by the municipal department. The violation of the provisions of this article shall be sanctioned with a fine of two thousand Lempiras (L. 2,000.00) for each tree cut down. The felling of trees, shrubs, and brush in the hydrographic basins that cross the urban centers of the Municipality is strictly prohibited. Violation of this provision shall be fined at the amount of three thousand Lempiras (L. 3,000.00) per square meter deforested.

It is strictly prohibited:

• a)

  To advertise announcements through loudspeakers or tape recorders with or without music, without the corresponding municipal permit. Advertising shall be authorized at a rate of one thousand three hundred Lempiras (L. 1,300.00) annually. Violation of these provisions shall result in a fine of one thousand five hundred Lempiras (L. 1,500.00).

• b)

  The use of horns adapted to the original horn of the vehicle and those placed outside the vehicle body, as well as sounding horns in the following areas: Hospitals, Health Centers, Nursing Homes, Schools, Educational Centers, Public Buildings, Religious and Cultural Centers and similar, Barracks and Battalions. Violation of these provisions shall result in a fine equivalent to one thousand five hundred Lempiras (L. 1,500.00) per infraction. No person is authorized to make noise with horns, whistles, ocarinas, loudspeakers, sirens, etc., in residential zones between 6:00 p.m. and 6:00 a.m., except for ambulances, fire departments, police, and others authorized by law.

• c)

  To practice marches and school drills in streets and public roads without the respective permit from the Municipality.

• d)

  It is prohibited to locate businesses such as dispensaries, billiard halls, bars, discotheques, and any other business that violates morals and good customs within one hundred meters of Educational Centers, Public Offices, Churches, and Monuments within the Historic Center of the Central District; therefore, the operating permit shall be cancelled for these centers.

• e)

  Kino games to which a fine of two thousand Lempiras (L. 2,000.00) and confiscation of the implements shall be applied.

Notwithstanding what is established in this Plan, the placement of commercial and political advertising in the following locations is prohibited:

• a)

  On rocks, trees, and other natural elements.

• b)

  On curves, slopes, vehicular and pedestrian bridges, posts, overpasses, intersections in rights of way, and traffic signals, with the exception of advertising installed on private property.

• c)

  The placement of commercial and political advertising is prohibited in plazas, parks, archaeological areas, historical monuments, and other places of tourist interest within the Historic Center; violation of what is established in this provision shall be sanctioned with a fine of up to five thousand lempiras (L. 5,000.00) to the natural or legal person owning said advertising, as well as the mandatory immediate removal thereof.

• d)

  In cemeteries, religious temples, poorhouses, nursing homes, and similar facilities.

• e)

  On vehicle windows that obstruct the driver's vision or on luminous devices (brake lights, lights, headlights) or on the registration numbers of rental vehicles. It is prohibited to affix advertising or propaganda on posters and walls using any type of adhesive. Violation of what is established in this article shall be sanctioned with a fine of up to five thousand Lempiras (L. 5,000.00), without prejudice to the obligation to remove the advertising at the expense of the infractor.

It is strictly prohibited:

• a)

  To change the traditional names of buildings or groups of historic value that have their names registered in Historical Archives, applying a fine of ten thousand Lempiras (L. 10,000.00).

• b)

  In the event of continuation of construction and remodeling work on Immovable Property not authorized by the Historic Center Management and/or changes made that contradict the guidelines of the Historic Center Management Regulations, the suspension, closure, or demolition of unauthorized works shall be ordered and a fine of FIVE THOUSAND LEMPIRAS (L. 5,000.00) must be paid, charging the demolition costs to the infractor. For the demolition of a building within the Historic Center, the procedure shall begin at the Historic Center Management, which shall rule favorably or unfavorably on the same, in accordance with the Honduran Institute of Anthropology and History, with the Construction Control Management being the entity responsible for issuing the respective permits. Demolition carried out without the respective authorization shall result in a fine of ONE HUNDRED PERCENT (100%) of the cadastral value of the property to be demolished without prejudice to the application of other fines and sanctions established by current laws and regulations. When demolition is carried out by order of the Municipal Corporation or other authority, the amount established in the Plan of Arbitrios imputable to the property owner shall be collected, plus additional costs.

• c)

  Throwing or discarding garbage, dead animals in the streets, plazas, historical monuments, and other public places that make up the Historic Center of the Central District shall be sanctioned with one thousand lempiras (L. 1,000.00) each time, without prejudice to the infractor removing the discarded material.

• d)

  Locating businesses such as dispensaries, billiard halls, bars, discotheques, and any other business that violates morals and good customs within one hundred meters of Educational Centers, Public Offices, Churches, and National Monuments within the Historic Center of the Central District, for which the Operating Permit shall be cancelled from these centers, without prejudice to the permanent closure of the business in case of violation.

• e)

  The placement of commercial and political advertising is prohibited in plazas, parks, archaeological areas, historical monuments, and other places of tourist interest within the Historic Center of the Central District; violation of what is established in this provision shall be sanctioned with a fine of up to five thousand lempiras (L. 5,000.00) to the natural or legal person owning said advertising, without prejudice to the obligation to remove the advertising at the expense of the infractor.

• f)

  The use of loading or unloading areas between 7:00 a.m. and 7:00 p.m. without the respective authorization from the Historic Center Management of the Central District is prohibited, as is loading and unloading in areas not established as such, for which a fine of Six Hundred Lempiras (L. 600.00) shall be imposed each time it occurs, in coordination with the Road Ordering Department of the Mayor's Office and the General Directorate of Traffic.

• g)

  Throwing construction debris obstructing free transit through streets and sidewalks shall result in a fine of L. 3,000; as well as the mandatory immediate removal thereof.

For failure to maintain inventoried buildings that cause damage to third parties, a fine of twenty-five thousand lempiras (L. 25,000.00) shall be imposed without prejudice to the corresponding indemnifications.

The Historic Center Management shall be in charge of issuing the authorization for the compatibility of land use for the establishment of businesses or the renewal of operating permits within the Historic Center, being essential for the issuance of the Business Operating Permit or its renewal. Said certificate shall be issued based on current urban zoning at a value of one hundred fifty Lempiras (L. 150.00).

The Municipal Mayor's Office shall issue a certificate of municipal solvency to those who have paid all their tax obligations, which shall be issued by the Finance and Administration Department, through the Collection and Financial Control Management.

No worker, employee, official, employer, company, establishment, business, or natural or legal person domiciled or resident in the Municipality that sells, produces, or has income in the Central District shall be accepted a proof of payment or exemption certificate from municipal taxes issued by another Municipality.

Prior to resolving requests that imply the granting of rights by the Municipality, it must verify the solvency of the petitioner, interested party, or beneficiary through the Collection and Financial Control Management.

For better administration of taxes, the Municipal Corporation, the Mayor, or the Vice Mayor in his absence, may establish a policy of correspondence and cooperation with other municipalities, as well as with the Executive Directorate of Income, the Superior Court of Accounts, the Association of Municipalities of Honduras, and other State agencies.

The Municipal Mayor is empowered to exchange information with other municipalities regarding matters and issues of a tax nature and the situation of taxpayers subject to different taxes, on a basis of reciprocity.

No institution, whether for profit or not for profit, may be exempted, granted dispensation, have its taxes reduced, forgiven, or have the payment of taxes modified, except in cases where the Law permits, without prejudice to the payment arrangements established in Article 121 of the Law of Municipalities and 76 of its Regulation.

For purposes of obtaining the operating permit for non-profit legal entities, the Collection Management and Financial Control Office shall issue a certificate stating that said legal entities are not subject to the tax on industries, commerce, and services. Once it is verified that this is a non-profit legal entity, it shall forward the request along with the certificate to the Citizens' Service Management Office, where the interested party shall obtain their operating permit. The request for a certificate shall be presented to the Collection Management and Financial Control Office, accompanied by a photostatic copy of the identity card and municipal solvency certificate of the legal representative, as well as the payment of the certificate and the resolution or agreement that certifies their status as a non-profit legal entity.

Taxes, fees, fines, and other charges shall be paid at duly authorized banking institutions, without the need for prior request and without prejudice to the procedures that may be adopted. The terms or deadlines for making such payments shall be those specified in the laws, regulations, or in this Plan.

The tax obligations of taxpayers are extinguished through payment, offset, prescription, or through any other form that the Law establishes.

The debt originating from the application of taxes, contribution for improvements, municipal fees and rights constitutes a preferential credit in favor of the Municipality.

Without prejudice to other provisions contained in laws and regulations, taxpayers and other responsible parties are obligated to:

• a)

  Present declarations and pay taxes, contributions, services, and other charges, within the periods established in the laws, this Plan, and other agreements issued by the Municipal Corporation.

• b)

  Keep, when applicable and in accordance with the Commercial Code, books and other mandatory and necessary accounting records, as well as those that the Municipal Corporation may require for persons not obligated to keep books and records.

• c)

  Record income and expense transactions on the corresponding dates, supporting such records with their supporting documents.

• d)

  Act as a Withholding Agent in cases where the Law, this Plan, or the Municipal Corporation so requires.

• e)

  Comply with any other provision issued by the Municipal Corporation.

The use of sidewalks, roadways, and green areas of the city for the display of merchandise or any other objects that obstruct the passage of pedestrians is strictly prohibited. The violation of the foregoing shall be sanctioned with a fine between five hundred Lempiras (L.500.00) and two thousand Lempiras (L.2000.00), without prejudice to the retention of the objects or products that cause the obstruction and closure of the responsible establishment, or cancellation of the permit held by the violator.

The control and monitoring of the collection system for the different municipal taxes, as well as the definition, coordination, and establishment of the procedures and administrative routines to be followed in order to obtain the greatest efficiency in such function, shall be under the charge of the Finance and Administration Office through the Collection Management and Financial Control Office, through the department that this office designates. For these purposes, the different departments responsible for the municipality that intervene in the collection process given the nature of their functions shall adjust themselves to the system and procedures established by said office.

In accordance with this Plan of Arbitrios, the Municipal Mayor's Office of the Central District, in the exercise of collecting municipal services rendered or any other debt owed to it, may take the following actions:

• a)

  Publish in the media the list of natural and legal persons in arrears.

• b)

  Place on the exterior of commercial establishments or properties belonging to natural or legal persons in arrears, visible signs or banners expressing their delinquent status.

• c)

  The temporary closure and cancellation when appropriate of the Operating Permit of commercial establishments that, once notified of arrears in the payment of municipal fees, do not comply with such notice. Said temporary closure and cancellation of the operating permit shall be carried out in accordance with what is established in the Law of Police and Social Coexistence.

• d)

  Order through the Collection Management and Financial Control Office the temporary closure of commercial establishments of any kind, administrative offices, branches, quarries, urban development projects, when once requested for payment by said management office, the taxpayer does not make payment within the period established in the notice. If the measure persists for more than 30 days due to non-payment, it shall be grounds for requesting the Citizens' Service Management Office to initiate the procedure for cancellation of the operating permit.

The information on payments and fines imposed that taxpayers have not paid and that remain pending shall be transferred to the Collection Management and Financial Control Office, to be credited to the annual settlements for and for the payment of municipal taxes and fees.

In accordance with Article 4, numeral 9, of the Law of Police and Social Coexistence, the Public Order Management Office shall be responsible for implementing measures to control the vagrancy of domestic animals, and shall establish the shelters that are necessary, being able to request support and collaboration from social or charitable institutions. The charging of the corresponding fee for the rescue and maintenance of animals that are claimed by their owners is authorized. The mechanism for charging this fee shall be implemented in coordination with the Finance and Administration Office. The Public Order Management Office in coordination with the Municipal Department of Justice shall apply the sanctions contemplated in the Law of Police and Social Coexistence for these cases.