2020 Arbitrium Plan AMDC

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

The revenues of the Municipality are divided into tax and non-tax revenues. Tax revenues are those derived from taxes, service fees and contributions, and non-tax revenues are those that enter the municipality in the form of sales, transfers, subsidies, inheritances, bequests, donations, fines, surcharges, interest and credits.

Tax is the monetary obligation that the Municipality demands from natural and legal persons, national or foreign, in order to obtain resources for the fulfillment of its purposes, without being obliged to provide an equivalent benefit in return. Municipal Taxes are those determined by the Law of Municipalities and any others established as such in special laws.

Municipal Fee is the sum of money that the Municipality collects for the actual provision of a public service to a specific person, natural or legal. Without prejudice to what is established in Article 84 of the Law of Municipalities, it shall be understood to include under this concept the provision of a public service, direct or indirect; that which uses municipal or ejidal property, that which uses municipal air space, surface or underground space, natural resources of any kind, that which receives direct or indirect benefits from the maintenance or development of Municipal Urban Infrastructure and; that which requests the provision of an administrative service. To the extent that other services are provided to the community not yet specified in this Plan de Arbitrios, these shall be regulated through Municipal Agreements and the same shall form part of the present Plan.

Investment Recovery is an obligation that the Municipal Corporation imposes on owners or possessors 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 done 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 near such works; 2. The person benefited by it; 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 Direction of Finance and Administration together with the corresponding department. The Municipality is empowered to determine fees on a general basis 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 period of recovery;

• 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 the national banking system.

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

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 failure to timely comply with municipal obligations. The following shall constitute accessory sanctions: seizure, loss of concessions, privileges, prerogatives or exemptions.- When seizure is not possible because the merchandise cannot be apprehended, it shall be replaced by a fine equal to the value thereof.

Taxpayers, responsible parties, withholding agents or third parties shall be in default if they fail to pay or deposit their tax obligations within the periods established for such purposes. Default shall begin to run as of the day following the one on which the respective payment or deposit should have been made, or in its case, as of the date on which the failure was committed.

It falls to the Municipal Corporation of the Central District to create, amend or repeal municipal levies, with the exception of taxes and other charges decreed by the National Congress of the Republic. For this purpose, the Municipal Corporation of the Central District shall notify taxpayers of the pertinent provisions by means of publications in the Official Gazette "La Gaceta", the Municipal Gazette and the most widely circulating media of the Municipality.

Without prejudice to what is provided in the foregoing articles and for the purposes of the present Plan it is understood by:

The Tax on Real Property is the tribute that falls on the value of real estate property located within the municipal term of the Central District, whatever the domicile of the owner or the person who possesses it with the intent of ownership and shall be paid by applying a rate of three Lempiras with fifty cents (L.3.50) per thousand for urban real property and two Lempiras with fifty cents (L.2.50) 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, what is pertinent in the Cadastral Regulation approved by Municipal Agreement Number 071 contained in Minutes No. 026 of December 22, 2014, published in the Official Gazette La Gaceta on February 3, 2015 and other applicable laws shall be observed. Cadastral values shall be calculated on the basis of the cadastral update carried out for the five-year period 2010-2015, except for those that have already been subject to adjustment in application of Article 85 of the Regulation of the Law of Municipalities.

The Tax on Real Property shall fall on the Cadastral Value recorded as of May 31 of each year in the Municipal Cadastre; notwithstanding the foregoing, for non-surveyed areas, the Cadastral Management may appraise the values according to market prices or accept the values of the properties declared in the sworn statements presented by the owners or legal representatives, without prejudice to the appraisal that may be carried out later; in case of discrepancy between the cadastral value and the declared value, the higher value shall be taken 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 that banks use in their active commercial operations, plus a surcharge of Two Percent (2%) annually calculated on balances.

A market reference coefficient of 75% is fixed for adjusting the value of the real property, in accordance with the cases provided for in Article 85 of the Regulation of the Law of Municipalities, in which the individual cadastral value may be adjusted at any time by the Cadastral Management.

Exempt from payment of the Tax on Real Property are those contemplated in articles 76 of the Law, 89 and 90 of its Regulation and in special and general laws in force. Real property that by virtue of the Law are exempt and all others interested in obtaining the corresponding benefits shall request such exemption annually, in writing, before the Municipal Secretariat, and the qualification of exemption requests shall be made 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 deemed pertinent, without prejudice to the reports that shall be periodically submitted to the Municipal Corporation. The files remitted and resolved shall be returned to the Municipal Secretariat for filing and custody.

Taxpayers subject to the payment of the Real Property Tax are obligated to submit a Sworn Declaration before the Cadastral Management in the following cases:

• a)

  When they incorporate improvements to their real properties.

• b)

  When ownership is transferred in any manner of the real property or properties of their ownership (this obligation is joint and several with the acquirer).

• c)

  In the acquisition of real properties by inheritance, bequest, and donation. For such purposes, the Cadastral Management shall provide free of charge the declaration forms, which must be submitted within thirty (30) days following the completion of the improvements or the transfer of ownership. For the application of the declaration for improvements, the Construction Control Management must timely communicate to the Cadastral Management about those real properties in which improvements have been made or will be made in accordance with its authorizations or construction permits. The failure to submit the sworn declarations referred to in this article shall be sanctioned with a fine equivalent to 10% of the total annual amount of the 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 Municipal Law. The Mayor's Office, through the corresponding departments, reserves the right to conduct such investigations as it deems pertinent to the real properties to verify that the incorporation of improvements, transfers, and/or acquisitions of real properties has in fact been correctly carried out.

The Municipal Corporation shall establish the system of advance payment of Real Property Tax, in accordance with what is established in Article 165, subsection a) of the General Regulation of the Municipal Law and this Revenue Plan. The System of Withholding at Source for the payment of Real Property Tax and solid waste and residential firefighting services is established on an optional basis. For these purposes, natural or legal persons, of public or private law, who have more than five permanent employees, financial institutions or social security institutions through which the passive subject of the tax has acquired a real property located within the municipal term by obtaining a mortgage loan or who has obtained a loan for another purpose, backed by a mortgage guarantee of said property, shall constitute themselves voluntarily as withholding agents. The responsible agents shall effect the withholdings during the period from March 1st to August 31st. For the calculation of the amount to be withheld through the respective monthly installments, the cadastral appraisal made on May 31st of the previous calendar year shall be taken as the tax base, without prejudice to the adjustment that is made for subsequent updates of the cadastral appraisal. The monthly amounts withheld must be deposited by the responsible parties at the Municipal Treasury or at the 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 who accept this obligation must present no later than February 15th of each year in the form that the Mayor's Office will provide, a list of employees who are owners or possessors of real properties and who have expressly and in writing consented to joining this system, indicating among others, their personal data, the cadastral code, their exact location, and if not the owner, the name of the owner. The fact of not having the list form does not exempt the obligation of its submission.

In accordance with Article 113 of the Municipal Law, real properties shall guarantee the payment of taxes that fall upon them, regardless of the change of owners that may occur on them, even when they refer to judicial or extrajudicial sales, the new owners must cancel said taxes, prior to their registration in the property registry. For these purposes, the Cadastral Management and the Collection and Financial Control Management of the municipality shall implement the most appropriate mechanism in coordination with the Property Institute of Francisco Morazán and the banking institutions of the National Financial System through the strategic alliance that is signed for this purpose within a period of three months.

The Tax on Industry, Commerce and Services shall be collected and paid in accordance with what is established in the Municipal Law, its regulation, and this Plan. When a natural or legal person wishes to put into operation a business where one already operated, the Mayor's Office shall of its own motion conduct a field inspection with inspectors from the Citizen Service Management (AER) and when the case warrants it with personnel from the Municipal Justice Department. Natural and legal persons, public and private, who by virtue of law are exempt from the payment of the Tax on Industry, Commerce and Services and all others interested in obtaining the corresponding benefits must request it annually, in writing, before the Collection and Financial Control Management, this management must issue the municipal exemption qualification based on the nature of its activity and the scope of the law that serves as its foundation. The benefit granted does not exempt them from the inspection and audit processes that are scheduled, without prejudice to the reports that they periodically render to the collection and financial control management.

Without prejudice to what is established in Articles 114 and 115 of the Regulation of the Municipal Law, the business or enterprise that has its head office in the Municipality and has branches or agencies in different places of the Republic is obligated to declare and pay taxes solely on the total income received or generated in the Central District, regardless of whether or not it has establishment or offices in it. Enterprises or businesses whose head office is domiciled in other municipalities and that make sales of merchandise or services to enterprises, businesses or merchants with domicile in this municipality are obligated to present on the date stipulated by this Plan a sworn declaration of these incomes. To verify said 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 Industries, Commerce and Services must present in the month of January of each year a sworn declaration of their gross or total income received from their economic activities, from donations received and corresponding to the previous calendar year, said declaration shall serve as the basis for applying the respective per thousand rates and the sum of this result shall be the monthly tax to be paid during the year in which the declaration is presented. No natural or legal person, public or private, with or without profit purpose, shall be exempt from compliance with the obligation to submit the sworn declaration. The income declared shall also serve as the basis for making the adjustments that correspond to the Sworn Declaration of the immediately preceding year. The failure to submit the declaration within the established time 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, except for the month of January which must be paid no later than February 10th; to payments made after the established time 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 Municipal Law.

In addition to the corresponding service rates, pool halls shall pay monthly for each table the equivalent of 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 its tax according to the volume of production, sales or annual income, according to the following scale: The tax indicated in this article must be paid within the first ten (10) days of each month and without prejudice to the payment that for income from other products they must make in accordance with what is established in Article 78 of the Municipal Law.

Taxpayers subject to the Tax on Industries, Commerce and Services that 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 Collection and Financial Control Management a Sworn Declaration on these facts within thirty (30) days following such acts. Changes of address, transfer or change of business owner, change, modification or expansion of the economic activity of the business must be declared before executing such 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 deposited within ten (10) days following the date of submission 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 Municipal Law). In the case of transfer of the business in any manner, the acquirer of the business shall be jointly and severally liable for this obligation.

The following changes or modifications shall be presented before the Citizen Service Management: 1. Change from alphanumeric RTN to numeric, presenting the following requirements: 1. Application directed to the Citizen Service Management requesting the change. 2. Photocopy of the new RTN. 3. Photocopy of Identity Card of the legal representative. 4. Photocopy of the Municipal Certificate of Good Standing of the legal representative. 2. Change of business name from individual merchant to partnership and vice versa: 1. Application directed to the Citizen Service Management 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 Identity Card of the owner or legal representative. 6. Photocopy of the Municipal Certificate of Good Standing of the owner or legal representative. 7. Authenticated Power of Attorney in case of not being the owner or legal representative. 3. Change of address or location: 1. Application directed to the Citizen Service Management requesting the change. 2. Compatibility approved by the Construction Control Management, 4th floor. 3. Sales Volume Form with the new address. 4. Photocopy of Identity Card of the business owner or legal representative if it is a partnership. 5. Photocopy of the Municipal Certificate of Good Standing of the business owner or legal representative if it is a partnership. 6. Authenticated Power of Attorney in case of not being the owner or legal representative. 4. Change of business name: 1. Application directed to the Citizen Service Management requesting the change. 2. Sales Volume Form with the new business name. 3. Photocopy of the Municipal Certificate of Good Standing of the business owner or legal representative if it is a partnership. 4. Copy of the Public Deed in case of being a partnership. 5. Authenticated Power of Attorney in case of not being the owner or legal representative. 5. Change of economic activity: 1. Application directed to the Citizen Service Management requesting the change. 2. Compatibility approved by the Construction Control Management, 4th floor. 3. Sales Volume Form. 4. Photocopy of Identity Card of the business owner or legal representative if it is a partnership. 5. Photocopy of the municipal certificate of good standing of the business owner or legal representative if it is a partnership. 6. Copy of the original deed. 7. Authenticated Power of Attorney in case of not being the owner or legal representative. 6. Change of legal representative: 1. Application directed to the Citizen Service Management requesting the change. 2. Accreditation of the new legal representative through a point of minutes if it is a nonprofit entity, and a deed of appointment if it is a company. 3. Photocopy of identity card of the new legal representative. 4. Photocopy of the certificate of good standing 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. Application directed to the Citizen Service Management requesting the change. 2. Complete two Sales Volume Forms (one for closure and another for opening). 3. Photocopy of identity card and certificate of good standing of the new owner. 4. If it is a partnership, copy of the RTN. 5. If it is a partnership, current public deed. 6. Transfer and Authentic original with copy of each one. 7. Authenticated Power of Attorney in case of not being the owner or legal representative. 8. Closure of operations, dissolution, liquidation or temporary suspension of activities. 1. Application directed to the Citizen Service Management requesting the respective closure, liquidation or suspension. 2. Sworn Declaration of the legal representative of the company stating that the information provided is truthful and expressing, with justification according to AMDC's judgment, the reason for the closure, dissolution, liquidation or temporary suspension. 3. Photocopy of deed of constitution of individual merchant or partnership. 4. Audit finalization issued by the inspection department of the AMDC.

Personal Tax is a burden that falls on the annual income received by natural persons within this Municipality, whether or not they have domicile or residence in it. For the purposes of this article, income is considered any class of return, 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 Municipal Law, and which is as follows: INDIVIDUAL OR PRIVATE DECLARATION MODALITY. Natural persons subject to this tax may declare individually or privately no later than April 30th, the income received during the previous calendar year in the forms that the Municipality shall provide free of charge. EMPLOYER DECLARATION MODALITY. For purposes of payment under the withholding at source system, employers must submit the corresponding declaration no later than March 31st. 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 common paper, with the requirements contained in the same form. PAYMENTS. Natural persons who have declared under the modality of individual or private declaration must pay the tax no later than May 31st. Employers who have made withholdings under the withholding at source system must, for payment purposes, deposit said amounts to the municipality no later than April 15th.

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

WITHHOLDING AT SOURCE SYSTEM. For the payment of Personal Tax, the Withholding at Source System is established, consequently, all natural or legal persons who pay or credit rents or income to natural persons in the municipal term are obligated as agents of withholding of personal tax to deduct it proportionally in the first quarter of each year, but at the discretion of the employer it may be deducted at one time in the month of January of each year. Employers are also authorized to deduct this tax from their workers who for any reason are separated from their businesses or enterprises in any month of the year. SANCTIONS. The submission of declarations outside the established time periods shall cause a sanction of 10% of the tax to be paid. The failure to pay within the indicated time periods shall be sanctioned with a fine equivalent to 25% of the value failed to withhold and with 3% monthly on the amounts withheld and not deposited within the indicated time period, without prejudice to paying the amounts withheld or failed to withhold. The amounts withheld by employers must be deposited to the Municipality within a period of fifteen days after receipt. Non-compliance with what is provided in this article shall be sanctioned in accordance with what is established in the previous article.

For purposes of modification of values based on the criteria previously indicated, the Citizen Service Management is authorized to make the modifications in the system, prior to issuance of certification by the Solid Waste Superintendence that clearly indicates the percentages to be modified and their justification.

Employers, whether natural or legal persons, private or state entities, that have five or more permanent employees, are obligated to present no later than March 31st of each year in the form that the Mayor's Office shall provide them, a payroll of their employees with indication of salaries or wages and the amount withheld from each one of them; it is not a requirement to accompany the sworn declarations of the employees from whom the withholding was made. The employee payroll form shall contain, among other data, the following: Name, business name or corporate designation, National Tax Register, telephone, address of the business or enterprise, withholding date and name of the employer or legal representative and for each one of the employees, surnames and names, identity card, position held, salaries or wages (gross income), tax deducted, credit and total to pay for each one of the employees. The fact of not having a payroll form does not exempt them from the obligation of its submission. The failure to submit the employee payroll within the indicated time period shall be sanctioned with a fine of 10% of the total amount withheld and may not be less than five thousand lempiras (L.5,000.00).

No natural person domiciled or resident 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 the 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 a presumptive income greater than declared. All professional associations are obligated to present before January 30 of each year a list of their members with identity number, full name, age, address and residential telephone number and place of work. For the issuance of Personal Income Tax solvency certificates, taxpayers subject to the payment of this tax must pay the amount of twenty-five lempiras (L25.00) for each certificate issued. Said solvency is exclusive to personal income tax and not a municipal solvency (taxes, fees and others). Professionals are obligated to declare their personal income, including those who obtain income in an unofficial manner, without prejudice to the declaration of other taxes. CHAPTER IV ON THE TAX FOR EXTRACTION OR EXPLOITATION OF RESOURCES

The collection of the tax for extraction or exploitation of resources is subject to the regulations and sanctions established in the Regulation of the Law of Municipalities. The Municipal Mayor or, in his absence, the Vice Mayor is authorized to execute agreements with the Honduran Institute of Geology and Mines (INHGEOMIN), the Institute of Forest Conservation (ICF), the Secretariat of Agriculture and Livestock, and other agencies of the Executive Branch in order to make viable the collection of this tax.

To determine this tax, the following rates shall be applied in the calculation of 1% of the commercial value according to the resource to be exploited: Non-Metallic Resource: fifty lempiras per cubic meter (L.50.00 m3) from the extraction or exploitation of non-metallic resources, regardless of its center of transformation, storage, processing, collection or any other arrangement that the State may agree to, in accordance with Article 80, second paragraph of the Law of Municipalities. Lime or any other resource regulated in the Mining Law, the Extraction Tax shall be in accordance with that established in said Law. Exploitation of standing or round timber, the tax shall be calculated with a price of L.400.00 m3. Exploitation of Resin, the tax shall be calculated with a price of L 2,000.00 per barrel.

For the collection of fees corresponding to authorizations issued by the Environmental Management Unit of the Municipality, in accordance with the requirements of the Regulation for Environmental Evaluation, Control and Management Processes of the Municipal Government of Central District. The cost for the small mining permit shall be calculated using the following tiered table: For artisanal mining (Non-metallic) five hundred lempiras (L. 500.00). Anyone who carries out this activity without the corresponding authorization shall have the sanctions contained in Article 158 of the Regulation of the Law of Municipalities applied to them.

Any natural or legal person engaged in the extraction, exploitation, and commercialization of these resources is obligated to present to the Municipality within the first three months of the year a sworn declaration of the volume of production, income or sales, for purposes of payment of the respective tax in accordance with the rate established in the Current Tax Plan and the Mining Law.

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

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

• a)

  Regular;

• b)

  Permanent; and, c. Occasional. These services are determined according to the basic needs of the population with respect to hygiene, health, safety, water and sanitation, markets, cemeteries, road infrastructure and transport, environment, education, culture, sports, urban planning and in general those that are required for the fulfillment of civil and commercial acts. Regular services are: 1. Collection, management and final disposition of solid waste; 2. Fire department service; 3. Public lighting; 4. The 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) Parking of vehicles and parking meter services; 4) Use of premises for livestock slaughter and similar activities; 5) Other similar services. Occasional services are:

  • 1)

    Authorization of accounting books and others;

  • 2)

    Authorization of business operation permits, licenses and their renewals;

  • 3)

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

  • 4)

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

  • 5)

    Processing and celebration of civil marriages;

  • 6)

    Vehicle and firearm registration, etc.;

  • 7)

    License for farmers, livestock breeders, slaughterers and others;

  • 8)

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

  • 9)

    Preparation of plans and designs of constructive elements;

  • 10)

    Inspection of constructions.

  • 11)

    Extension of certifications, attestations and transcriptions of acts proper to the Mayor's Office.

  • 12)

    Cleaning of vacant lots.

  • 13)

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

  • 14)

    Placement of signs and advertising billboards, or its authorization;

  • 15)

    Use of public roads and spaces for aerial installations;

  • 16)

    Extension of permits for street vendors and sales kiosks;

  • 17)

    License for exploitation of natural products;

  • 18)

    Authorizations of livestock sales letters;

  • 19)

    Registrations of livestock branding irons;

  • 20)

    Travel guides for livestock movement between Departments or Municipalities;

  • 21)

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

  • 22)

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

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

It is the responsibility of the Superintendency of Municipal Cleanliness to supervise generators, the collection, transport and final disposition of solid waste. The final disposition of special, hazardous, biological and highly contaminating waste shall be done by means of special cells that guarantee that there is no damage to the environment.

The services for managing solid waste that include street cleaning, collection, transport and final disposition of solid waste are classified as:

• 1)

  Residential: These are services intended for residential homes intended for dwelling and vacant lots. The charge for 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 to be established. The Superintendency of Municipal Cleanliness shall inform the Management of Collections and Financial Control about the neighborhoods where the collection service is provided and are not incorporated in the database, so that that Management performs the collection.

• 2)

  Non-residential: These are services that are charged with the payment of the Tax on Industry, Commerce and Services, and shall be in accordance with annual income by sales volume in each declared branch. The charge for this service fee shall also be monthly, in accordance with the following table: The administration is authorized to design an effective monthly collection system, and in this way proceed to make the corresponding charges for the payment of the fee for the services of cleaning, collection, transport and final disposition of solid waste to all taxpayers of Central District. For companies and institutions that have greater collection frequency per week, or that due to their economic activity (supermarkets, restaurants, hotels, maquiladoras, shopping centers, schools, universities, factories, hospitals, and similar) constitute themselves as large generators, qualified by the Administration as appropriate, an additional charge of up to one hundred percent (100%) of the rates established in the previous table is established. Companies and institutions considered due to their economic activity as large generators, but that have Waste Management Plans, Best Practices and Cleaner Production Methods may request an inspection from the Superintendency of Municipal Cleanliness who shall determine if by their volumes or weight generated it is not a Large Generator of Waste.

• 3)

  Other generators: In the case of state institutions or agencies, organizations exempted from the Real Property Tax, and other uncatastrated properties, as well as any other generator not included in the previous classifications, shall pay a fee according to the special Agreement issued by the Municipal Corporation. The Municipal Mayor is authorized to issue the agreements that develop the regulations for the collection of Solid Waste and the corresponding charges.

• 4)

  Special Waste: These are all those generated in the productive processes of industry and commerce in general and that due to their characteristics, composition and volume are not assimilable to domestic waste. Their collection shall be made according to the area and the operation required for its correct disposition at the Sanitary Landfill: It is totally mandatory for all citizens who have their home or business in areas where solid waste collection service is provided, that they use it, and they are obligated to pay the respective fee whether using it or not.

In the sectors and/or businesses and institutions where the waste collection service is not provided but the street sweeping, transport and waste disposition service is provided, the following percentages shall be applied to the rate applied to the declaration presented following the opinion of the Municipal Cleanliness Management: In the Residential Sector it shall be applied to difficult access areas, villages and hamlets, located more than four hundred meters from the nearest collection point, including containers. In the case of the Commercial Sector, it must use the Sanitary Landfill by making periodic and continuous discharges.

All businesses such as: restaurants, shopping centers, stores, warehouses, residences and others, have the obligation to keep their sidewalks or spaces clean and free of waste, having the obligation to know the days and times when the collection unit passes.

Regarding the use of containers:

• a)

  The containers located at different points in the city are for residential use only, the discharge of vehicles is prohibited.

• b)

  A maximum discharge equivalent to one barrel of waste is permitted in containers of 20 and 30 cubic yards.

• c)

  Waste must be deposited within the container and be in bags of sufficient strength.

• d)

  No gardening waste or tree pruning, tires, construction waste, demolition, soil, special waste and infectious biological waste should be deposited.

Persons in charge of transporting waste to the Sanitary Landfill must do so taking into account appropriate measures and framed in national and municipal legislation such as: covering the waste with a tarp to prevent it from spreading on public roads at the time of being transported, personal protective equipment, road equipment and other applicable items.

The only Final Disposal site for Waste is the Sanitary Landfill; in the case of inert materials they may be disposed of in landfills authorized by the Environmental Management Unit.

A special account shall be created to sustain the operations of the Municipal Sanitation Management. Said account shall be maintained solely with funds derived from the payment of fines imposed for violating the provisions established in Articles 39, 42, 43, 44, 45, 47, and 51, as well as from charges for Hospital Cell Use Service and Special Cells established in this Plan of Rates.

A charge shall be levied for the service of disposal of dangerous hospital waste (DHP) in the special cell within the Sanitary Landfill, at the rate of three thousand lempiras (L.3,000.00) per Ton deposited by contracting company, clinic, hospital or laboratory, whether of a public or private nature. Every clinic, healthcare assistance center, hospitals and similar establishments where hospital waste is generated shall present for the renewal of the operating permit the certificate of use of the Special Cell in the Sanitary Landfill issued by the Municipal Sanitation Management and shall be current with payments for this service.

The Municipal Sanitation Management is empowered to collaborate with the Municipal Department of Justice regarding the citation or summons for the violation of the prohibitions contemplated in Articles 39, 42, 43, 44, 45, 47, and 51, numerals a, b, c, d, e, and j of this Plan of Rates. CHAPTER III FIRE DEPARTMENT RATE

The fire department service is divided into Residential and Non-Residential or Commercial; the charge for this service shall be made in the following manner:

• a)

  Residential Service: shall be calculated by applying the factor of 0.0006 (zero point zero zero zero six) to the cadastral value or the declared value of the real property, excepting real property subject to general adjustment to which the value resulting from the amount calculated as fire department rate in the year 2009 plus an increase in the following percentages shall be applied;

• b)

  Non-Residential Service: shall be divided into non-residential service properly speaking and Commercial: 1) Non-residential properties properly speaking shall be calculated by applying the factor of 0.0006 (zero point zero zero zero six) to the cadastral value or the declared value of the real property. 2) Commercial: Shall be charged jointly with the Tax on Industry, Commerce and Services, in accordance with the following tariff:

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, in such a way that this entity ensures its financial self-sustainability and may have the technical capacity necessary to address the environmental problems of the Municipality of the Central District. All natural or legal persons who carry out activities of an industrial, commercial or service character of the public or private sector are subject to the Rate for Conservation and Management of the Environment. Said rate shall be charged monthly together with the Tax on Industry, Commerce and Service, in accordance with the declared income and in accordance with the following table:

Environmental Prohibitions:

• a)

  It is prohibited to operate without authorization for final disposal of waste. Any institution or company that produces them shall submit an application to the Municipal Sanitation Management for the handling and treatment of such waste. In the case of hazardous waste, it shall be the responsibility of the generator to handle them and mishandling shall be sanctioned based on applicable current legislation.

• b)

  The use of the Municipal Dump/Landfill without its respective authorization for utilization shall impose on the offender a fine of two thousand five hundred lempiras (L. 2,500.00) each time, without prejudice to the charge corresponding to what was deposited.

• c)

  It is strictly prohibited to dump garbage, construction waste, dead animals, and all types of non-hazardous waste in public places, streets, parks, boulevards, river banks and riverbeds, rights of way, vacant lots, and others. Violation of this rule shall result in 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 seized until the fine is paid, without prejudice to the removal thereof or the municipality's collection of the removal cost.

• d)

  It is strictly prohibited to transport waste to the Municipal Dump without covering it with a tarp to prevent it from scattering on public roads. Failure to comply shall impose on the offender a fine of two thousand five hundred lempiras (L 2,500.00).

• e)

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

• f)

  It is strictly prohibited to place solid waste on sidewalks on days and hours when the Municipality does not provide collection service. Failure to comply with the above 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 times five thousand lempiras (L.5,000.00).

• g)

  It is strictly prohibited to operate businesses such as: fast food, restaurants, car wash centers, and others that the UGA may consider, without having installed grease traps with at least one inspection window or sand trap, to which monthly maintenance shall be provided. Also, in no way shall waste extracted from grease traps be dumped into the sanitary system network. In case of selling the grease to third parties, the certificate of its sale and final disposal must be obtained. Violation of the above shall be sanctioned in the same manner as established in subsection d) of this article.

• h)

  Used oil (burned oil) repair shops and generators shall be established in accordance with the land use designated in zoning plans and in compliance with environmental measures established by the UGA. In case of selling burned oil to third parties, the certificate of its sale and final disposal must be obtained. In case of non-compliance with the above and improper disposal of oil, fines of five hundred lempiras (L. 500.00) to five thousand lempiras (L.5,000.00) shall be applied, as appropriate, without prejudice to the cancellation of the operating permit.

• i)

  The accumulation of tires under conditions that may generate vector proliferation 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 times one thousand to five thousand lempiras (L.1,000.00 to L. 5,000.00), depending on the quantity of tires accumulated.

• j)

  It is strictly prohibited to burn solid waste or any type of waste within the jurisdiction of the Municipality of the Central District; to persons or companies that do so the following sanctions shall be applied: With the burning of such waste, damage is caused to third parties and/or the environment; the responsible party shall remedy the problem caused, regardless of the expense incurred.

The UGA of the AMDC shall provide the weed cutting service ex officio or by complaint, with a charge according to the following table: It shall be through the Cadastral Management, Financial Management, Municipal Department of Justice, and the Environmental Management Unit (UGA) that monitoring activities shall be developed for the cleaning of vacant lots through the database of property owners within the Central District. The Environmental Management Unit is empowered to proceed with cutting weeds from all those vacant lots that are dirty, in application of the ordinance for cleaning of vacant lots; they shall send the cleaning report to the Municipal Department of Justice and to the Cadastral Management so that these, within the scope of their competencies, identify and require the owner of the properties that have violated the ordinance, the charge for the cleaning of the lot as well as the respective fine. The Financial Management shall be responsible for ensuring the recovery of these charges.

When a person needs to cut a tree within the urban area, they shall submit an application and comply with the requirements established by the UGA, which shall determine whether or not the request is authorized. In case of authorizing the cutting of the tree or trees, payment shall be made according to the following: For zoning different from R1, R2, and R3, the charge shall be made using the R1 Zone criterion. Once the cutting of tree or trees is approved, the interested party shall proceed to sign a commitment agreement with the UGA, in which they commit to plant within a determined time the number of trees that the UGA indicates, as well as the place where they shall plant them, or failing that, the donation of materials or inputs necessary for plant production and maintenance of green areas, which shall have a value equivalent to the assigned percentage according to the payment range for authorization of cutting. Payment range donation percentage: Non-compliance with this commitment agreement shall be considered a minor infraction. In the case of projects with environmental licensing, they shall be sanctioned in accordance with what is established in the resolution. Furthermore, machinery and wood resulting from the action shall be seized, and it shall be the Municipal Police together with personnel from the UGA assigned for this function who shall carry out said seizure. The natural or legal person who, without authorization from the UGA, cuts trees shall sign a commitment agreement with this office where they commit, furthermore, as a measure of compensation to the planting of 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 according to the payment range of the fine for cutting. Calculation of the percentage for compensation 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 UGA.

The natural or legal person who fells a tree on public or private property accidentally, whether by vehicular collision, construction, or any other activity, shall pay the remediation expenses which shall include the repair of the damaged infrastructure, as well as the payment of the fine for tree cutting within the term of thirty (30) business days. Non-compliance with the above shall be sanctioned with a fine of 3 times the remediation expense in addition to the value of the penalty defined, in accordance with the type of tree affected.

Also subject to the above sanctions are the actions of poisoning (chemical, biological or other), girdling of the trunk, and introduction of foreign bodies (wires, nails, rods, etc.) that damage the plant partially or completely, which shall be determined by the UGA. In case any of the above actions are proven, what is established in the Article on sanctions for tree cutting of the current plan of rates shall be applied.

All businesses and commercial establishments of nighttime entertainment such as: bars, nightclubs, restaurants, cantinas, sports courts, clubs When the authorized tree cutting is greater than 30 trees, any of the compensation measures established in the Regulations shall be considered.

Tariff for tree pruning: pruning shall be understood as the maintenance of the width and height of the crown, thus obtaining a general balance of the tree. The person shall submit a properly justified application to the UGA. The value of the pruning permit shall be L. 100 per tree. In the case of ornamental trees they shall pay L.50.00; in the case of protected trees and those of historical value, it shall be L. 1,000.00 and L 2,000 per tree, respectively.

The UGA shall provide the service of cutting or pruning solely and exclusively of trees at risk that are located outside electrical lines provided that it does not affect the UGA's planning, paying for this service the following: In case of trees near electrical lines, the interested party shall manage the cutting or pruning through the National Electric Company (ENEE) and/or Fire Department.

The natural or legal person who, without authorization from the UGA, proceeds to cut trees or completely or partially destroys trees located in: plazas, boulevards, streets, avenues, passages, sports courts, or on private land in neighborhoods, colonies, neighborhoods, cemeteries, or other places; shall be sanctioned as follows:

Public scandals produced with sound equipment in vehicles or those who detonate firearms, explosives or similar near nighttime businesses, as well as in streets and residential areas, shall be sanctioned with a fine taking into account the seriousness of the violation and shall be imposed according to the following scale: a) Minor offenses L.300.00 to L.500.00 b) Serious offenses L.501.00 to L. 5,000.00 Minor offenses constitute those resulting from manifest responsibility, fault or negligence, and serious offenses those resulting from willful misconduct or as a result of recidivism or reiteration.

Violations of sonic environmental pollution may give rise to the confiscation of sound equipment in addition to the payment of the corresponding fine.

Persons who in their homes disturb the tranquility, rest, and peace 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, cited by the Municipal Department of Justice, and in case of recidivism shall be sanctioned with double the fine, which may be charged to the corresponding Real Property Tax bill of the offender, in case the offender is the owner of the property.

The promotion of products or services outside commercial businesses, warehouses, schools, academies, 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 operating with a special permit for the promotion of activities of social benefit.

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

• 1)

  For the holding of carnivals one thousand lempiras (L.1,000.00) per day.

• 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.

• 3)

  Entertainment (live performances) in bars and restaurants three hundred fifty lempiras (L.350.00) for each day the event or activity is held. The permits for numerals 1 and 2 are granted for up to two consecutive days in a week and no more than six hours per day, which may begin at eight in the morning (8:00 am) and may not exceed two in the morning (2:00 am). In the case of numeral 3, it shall be granted for the days of operation of the business, respecting the already established schedules.

The use of parks and green areas of the Central District shall not be authorized for the development of lucrative activities. The violation of this provision shall be fined with an amount of five thousand Lempiras (L.5,000.00).

A charge shall be collected for environmental evaluation processes for the execution of projects, industrial facilities, 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 fee schedule: Projects with investment amounts greater than 20 million lempiras shall pay 0.10% of the total investment amount. Payment shall be made at authorized financial institutions of the National Financial System, prior to the issuance of the respective certificate.

Companies that have begun operations and that do not have environmental permission and that belong to categories 1, 2, and 3 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 investment amount using as reference the table of the previous Article. This without prejudice to the payment of a fine, which shall be equivalent to 5% of the permit amount for each year after the beginning of operation thereof.

Charges for studies, environmental analyses, project status certificates requested by the Ministry of Natural Resources and the Environment, controls and monitoring of mitigation measures for businesses or projects conducted by the UGA, shall be subject to the payment rate according to the following table: Payment shall be made at authorized banks of the National Financial System, prior to the issuance of the respective certificate.

The expansion and/or remodeling of projects shall have a cost in accordance with the investment amount of the expansion and/or remodeling calculated according to the following table:

The cost for the renewal of the Environmental License and Audit shall be 25% of the value of its permit, calculated with the investment amount updated through declaration of the proponent.

The charge for the municipal environmental permit shall be governed by the following table: Projects with investment amounts greater than twenty (20) million shall pay 0.10% of the total investment amount.

Minor violations shall be sanctioned with an amount of L.1,000.00 to L.5,000.00

Less serious violations shall be sanctioned with an amount of L.5,001.00 to L.100,000.00

Serious violations shall be sanctioned with an amount of L.100,001.00 to L.1,000,000.00, without prejudice to remedying the environmental damage caused and/or the criminal responsibility that could be incurred in case the effects of the violation committed are framed as a crime in accordance with the provisions of the Penal Code.

Natural or legal persons who begin their works or activities without municipal authorization shall be sanctioned with a fine equivalent to one hundred percent of the value of their permit.

All works or projects of a social character, non-profit, of the municipality and those executed by the Central Government that have a legislative decree of exemption from payment of fees and taxes (duly accredited) shall be exempt from payment of fees for services provided by the UGA, with the exception of those related to the cleaning of Vacant Lots for violation of ordinances and the sanctions applicable in this Tax and Fee Schedule. SECTION II OF VISUAL POLLUTION CONTROL

The placement of advertising banners in a horizontal manner that cross both extremes of the streets shall not be permitted, in view that they may cause visual pollution and diminish the visibility of drivers. The violation of what was previously stipulated shall be sanctioned with fines of two thousand Lempiras (L.2,000.00) for each banner placed, without prejudice to the seizure and final disposition thereof. The Construction Control Management shall be responsible for monitoring compliance with this provision. CHAPTER V HISTORIC CENTER SECTION I OF AUTHORIZATIONS FOR INTERVENTIONS IN REAL PROPERTY

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 allow a fair, timely, and efficient application by the Municipal Mayoralty of the Central District and other entities interested in the powers conferred upon them by Law.

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, called the Declaratory Agreement of National Monuments of the Historic Center of the Central District and surrounding areas.

It is the responsibility of the Municipal Mayoralty of the Central District through the Historic Center Management to issue favorable or unfavorable rulings 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 performance of any conservation, restoration, or intervention work on inventoried buildings; construction, remodeling, or demolition works of real property, 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 property or business shall present themselves to the Historic Center Management with the respective municipal cadastral key of the lot where it is intended to act, to learn about the guidelines that shall govern such work and to avoid incurring in cases that contravene the Management Regulations of the Historic Center of the Central District. Once the previous step has been completed, the process shall proceed to identify the case of applicable authorization according to the classification of the property in the Inventory of Cultural Heritage of the Nation and guidelines shall be given for each situation. These authorizations shall be extended once the Historic Center Management issues the Project Approval Opinion with respect to the architectural design of the real properties, the integration with the context, and the compatibility of land use according to current zoning. The Construction Control Management and the Citizen Service Management are the entities responsible for the approval and issuance of the respective permits, whose final decision shall depend on the guidelines for each case, from this point forward the interested party may begin the design work and/or programming of the work.

The types of authorizations that shall be issued by the Historic Center Management, prior to the corresponding municipal permits, are as follows:

• 1)

  Authorization for intervention of inventoried and non-inventoried real property buildings.

• 2)

  Special Authorizations.

• 3)

  Authorization for the demolition of a building.

• 4)

  Authorization for installation of signs.

• 5)

  Compatibility Authorization (opening and renovation).

• 6)

  Authorization for use of public spaces.

• 7)

  Authorization for use of audio advertising.

• 8)

  Authorization for painting façades of real properties.

All construction, modification, expansion, 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 such permit. Any intervention without authorization shall pay a fine of: 1. Inventoried property L.10,000.00, without prejudice to other fines. Having to comply with the Guidelines according to the Management Regulation of the Historic Center. 2. Non-inventoried property L.3,000.00; without prejudice to other fines. Having to comply with the Guidelines according to the Management Regulation of the Historic Center.

For each demolition of buildings that is carried out within the Historic Center, the procedure shall begin at the Historic Center Management, which shall rule favorable 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 the issuance of the respective permits, paying for its issuance the following:

• a)

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

• b)

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

• c)

  One thousand five hundred Lempiras (L. 1,500.00) for areas greater than 500 square meters. The lack of a 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 Tax and Fee Schedule shall be charged, imputable to the owner of the property, plus added costs.

The exterior façades of the inventoried and non-inventoried buildings within sectors 01, 02, and 06 that comprise the Historic Center of the Central District must be painted uniformly with the colors authorized in the color palette of the Historic Center Management and the Honduran Institute of Anthropology and History, even if they belong to different owners or are leased by different persons, with it being strictly prohibited to divide the properties with different colors. A period of fifteen (15) days shall be given after the first citation to paint the façades of businesses and residences within the Historic Center, with it being strictly prohibited to cover with paint the characteristic carved stone architectural elements of our city such as: balconies, cornices, arch surrounds in voids, window sills, door jambs, corbels, portals, attached columns, keystones, etc., as well as painting advertising on the façades, metal curtains on 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), for inventoried and non-inventoried buildings, plus the setting of a period of fifteen calendar days (15) to correct the painted façade. The authorization for painting façades shall have a cost of two hundred Lempiras exactly (L. 200.00) and must comply with certain requirements already established by the Historic Center Management, with this Management providing advisory services in the selection of colors according to the color palette of the Historic Center, taking into account the architectural typology of the property. The use of oil-based paint is not permitted. SECTION II OF SIGNS IN THE HISTORIC CENTER

The Historic Center Management (GCH) 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 kind, which it shall grant or deny directly to the interested party in accordance with the Management Regulations of the Historic Center of the Central District. The applicant is obligated to know the guidelines prior to the manufacturing of these, for which they must contact this Management to receive the corresponding advisory services and once the design is approved, they will be given the final processing of the request at the Historic Center Management, for which they shall pay once only for the installation permit and annually for the renewal of the permit before the Construction Control Management when applicable. For the authorization issued at the Historic Center Management, an amount of three hundred Lempiras (L.300.00) per square meter shall be charged. Non-compliance with the guidelines for signs within the Historic Center shall cause a fine according to the valuation table of the Historic Center, as well as the mandatory immediate removal thereof. The type of sign not mentioned in the previous table shall be charged based on a fixed rate of (L.3,000.00) three thousand Lempiras exactly. SECTION III OF THE COMPATIBILITY CERTIFICATE FOR BUSINESSES

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 the obtaining of operating permits within the Historic Center. Such certificate shall be issued based on the current urban zoning.

It is the authority of the Citizen Service Management in special cases to consider for the 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 in the month of December the Citizen Service Management of the causes or reasons that support its decision, requesting the non-renewal of the permit. SECTION IV OF THE 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 for purposes of public interest within the limits of the Historic Center, understanding public spaces to be plazas, parks, promenades, and other areas of public use, prior to a written request from the interested party and shall be valid only for the event specified therein. The payment shall be two hundred Lempiras (L 200.00) per day. Regarding the use of public space for the consumption and sale of alcoholic beverages within the limits of the Historic Center authorized by the GCH, this shall be regulated in accordance with the applicable regulations for such activity, the authorization for which shall be issued by this management through a written request submitted by the interested party with a cost of two hundred Lempiras (L.200.00) for three (3) consecutive or alternating days in the week, non-compliance with what was previously established shall be sanctioned administratively in accordance with the following scale:

• a)

  Minor Offense: with a fine of L. 1,000.00. (When a first call for attention is made through citation in legal and proper form for not having the corresponding permit.)

• b)

  Serious Offense of L. 2,000.00. (When having or not having the respective permit, it causes visual, sonic, and environmental pollution (called the latter as: garbage and greasy domestic water pollution).

• c)

  Very Serious Offense: L. 4,000.00 For recidivism in the aforementioned offenses, plus a temporary suspension of three (3) months for a new request or revocation of the current operating permit, if it had one. The aforementioned shall be applicable to authorizations of public spaces when it comes to the use of parks and plazas for purposes of gastronomic sales, fairs, and any other event that causes any of the aforementioned offenses. The Historic Center Management shall be responsible for issuing authorization and communicating for the Use of Public Space for the holding of events for purposes of public interest within the limits of the Historic Center, understanding public spaces to be plazas, parks, promenades, and other areas of public use, prior to a written request from the interested party and shall be valid only for the event specified therein, without prejudice to the granting of the temporary license for shows, fairs, and others issued by the Citizen Service Management. SECTION V OF THE AUTHORIZATION OF AUDIO ADVERTISING

The Management of the Historic Center shall be responsible for issuing Audio Advertising Authorization within the limits of the Historic Center, understood as 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 upon written request by the interested party and payment of an amount of three hundred Lempiras (L. 300.00) for each day of duration with a schedule of 10:00 A.M. - 5:00 P.M. and in no case shall it exceed three (3) consecutive days. This authorization shall have validity for the activity specified therein and shall be issued provided that the sound level does not exceed fifty (50) decibels within a radius of one hundred (100) meters. It is prohibited that the ambient sound from commercial establishments be heard outside the limits thereof, and appropriate precautions must be taken to isolate the sound from their premises. Violation of the aforementioned shall result in administrative sanctions in accordance with the scale detailed below:

• a)

  Minor violation: with a fine of one thousand five hundred lempiras (L. 1,500.00). When a first warning is issued through legal citation in proper form for not having the permit.

• b)

  Serious violation of three thousand lempiras (L. 3,000.00). When, whether or not having the respective permit, it causes noise pollution.

• c)

  Very serious violation: six thousand lempiras (L. 6,000.00), for recidivism. CHAPTER VI ROAD INFRASTRUCTURE MAINTENANCE FEE

In order to create a special fund, a fee is established for motor vehicles, cargo vehicles, trailers, semi-trailers and motorcycles for the sustainability, expansion and maintenance of urban road infrastructure, including the costs of administration and supervision of such services. The annual adjustment shall be made using fundamentally the Consumer Price Index (CPI) of the Central Bank of Honduras (BCH), as this constitutes a simple, reliable indicator of a general character, easy to understand, rational calculation and scientific calculation by the BCH taking into account technical and transparent elements and methodologies, whose integration implies the consideration of a large number of variables, economic activities and key inputs, which adequately encompass the behavior of the cost of living and its repercussions on the prices of the majority of items. The Adjustment Factor (FA) shall be calculated using the following formula: FA = IPCa/IPCo, where:

• 1)

  FA = Adjustment Factor by which the values of each of the current Rates and fees assigned to each type of vehicle by the AMDC shall be multiplied, to calculate the adjustment that such values shall suffer.

• 2)

  IPCa = Current CPI, according to data issued by the Central Bank of Honduras, corresponding to the month of January of the year in which the rate adjustment is being made.

• 3)

  IPCo = Original CPI, according to data issued by the Central Bank of Honduras, corresponding to the month of January of the year prior to the one in which the rate adjustment is being made or the year that serves as the basis for making the rate adjustment. Subsequent adjustments shall continue to be calculated year by year, using the same formula and varying only the CPI indices for each period (January), compared against the CPI of January of the immediately preceding year. The structure of the Road Infrastructure Maintenance Fee in effect for the year 2019 is as follows:

  Section B Legal Notices

  Section B Legal Notices

New and used vehicles shall pay upon first entry into the country, zero point five percent (0.5%) on the CIF value plus the rights and other charges that the importation causes, at the time of its liquidation. This registration fee shall apply to the invoice price of sale at 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). Payment of this fee shall be annual during a consecutive period of five (5) years, after which it shall proceed to payment of the fees established in the previous article. The amount of the fee shall be paid in full, regardless of the date on which a vehicle is liquidated or acquired. Payment of this fee shall be made in the financial institutions authorized in the special account created for those purposes. In the first year, payment shall be made at the time the importation is made, whether by the importer or the buyer. From the second to the fifth year, it shall be made in the national banking system. The following are exempt from payment of this calculation method of the fee: a) Vehicles registered with rental plates, which obtain the respective operating certificate. b) New motorcycles whose engine displacement is equal to or less than five hundred (500) CC.

Non-compliance with timely payment of the vehicle fee shall be sanctioned with the payment of a fine of four hundred Lempiras (L. 400.00) for each month of delay, adding up to 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, adding up to a maximum of two hundred Lempiras (L. 200.00) per year, being cumulative in subsequent years. CHAPTER VII OF THE CADASTRE

The services of the Cadastral Management shall be charged as follows: a) Issuance of map of the limit of the Municipality of the Central District (based on the definition by urban and rural sectors and municipal cadastral information) Printed 24"X36"(Max) L. 1,000.00 Digital (CD) L. 600.00 Both L. 1,050.00 b) Issuance of general map of urban zone Printed 24"X36"(Max) L. 1,000.00 Digital L. 600.00 Both L. 1,050.00 c) Issuance of sector map Printed 24"X36"(Max) L. 600.00 Digital L. 400.00 Both L. 650.00 d) Issuance of block map Printed 24"X36" (Max) L. 600.00 Digital L. 400.00 Both L. 650.00 e) Copy of approved development map (if it exists in the cartography file) Printed 24"X36" (Max) L. 1,000.00 Digital L. 600.00 Both L. 1,050.00 f) Issuance of development map in accordance with drawing of cadastral planimetry: Printed 24"X36" (Max) L. 600.00 Digital L. 400.00 Both L. 650.00

Section B Legal Notices g) Map of location of Cadastral Code (attached to any certificate issued by the Municipal Cadastre)....L. 50.00 h) Other Maps of the Cadastral Planimetry according to requested information: Printed 24"X36"(Max) L. 400.00 Digital L. 200.00 Both L. 450.00 i) Polygonal map for the legalization of Municipal properties (when the information exists in file).....................................................L. 250.00 j) Verification of polygonal map for the legalization of Municipal properties.....................................L. 200.00 k) Certificate of Allottee Registration…......L. 200.00 l) Certificate of Lien Release….......L. 200.00 m) Certificate of Cadastral Assessment of Property....L. 600.00 n) Certificate of Limits and Boundaries…..........L. 600.00 o) Certificate of Value per square meter of land and construction………………………..................L. 300.00 p) Certificates of Ownership or NON-Ownership of Real Property registered in the Municipal Cadastre………….L. 200.00 q) Certificate of Location of Cadastral Code....L. 200.00 r) Rural Certificates…………………………….L. 200.00 s) Other Certificates………….……………........L. 200.00 t) Inspections to address complaints……........L. 200.00 All certificates issued by the Cadastral Management shall have a validity of one year, from the date of issuance thereof, provided that the physical and legal conditions of the property or the applicant do not change. CHAPTER VIII MANAGEMENT OF CONSTRUCTION CONTROL SECTION I SERVICE OF ALIGNMENT, REVIEW AND APPROVAL OF PLANS

All small businesses in accordance with the Zoning Regulations, Works and Land Use of the Central District shall be exempt from the annual payment for the concept of sign renewal, when the same does not exceed two square meters (2.00 M²). The Municipality may authorize the placement of advertising in revitalization projects of areas of public use, through the Management of Construction Control, which shall determine the conditions, design and execution thereof, being in this case and banners the advertising elements that the Management of Construction Control may approve.

The Management of Construction Control shall provide the services of alignment, review and approval of plans established in the Zoning Regulations, Works and Land Use in the Central District, in accordance with the following fees:

• a)

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

• b)

  For the concept of 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 in accordance with the preceding literal of this article, paying only the area to be modified and/or subdivided.

• c)

  In the case of social interest urbanizations (duly certified by CONVIVIENDA) they are exempted from said payment under the Law of Benefits for Social Housing Construction Projects, created by Legislative Decree No. 93-2015 dated January 23, 2016.

• d)

  In the case of condominiums, a fee of one point two percent (1.2%) shall be paid of the value resulting from multiplying the total area of the project by an amount of four hundred

  Section B Legal Notices Lempiras (L. 400.00) per square vara (all areas of lots, streets, green areas, reserve, reforestation, etc. apply).

• e)

  For the concept of 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 in accordance with the preceding literal of this article, paying only the area to be modified and/or subdivided.

• f)

  Any inspection that the Management of Construction Control considers necessary shall be charged two hundred lempiras (L.200.00) and/or at the request of the interested party, which must be added to the file from which it originated and leave a record within it of the inspection performed.

Once the final project is approved, the owner must comply with the times established in Article 69 of the Zoning Regulations, Works and Land Use of the Central District, for the procedure of transfer of these areas. In case of non-compliance with said times, the Management of Construction Control shall apply a fine of ten percent (10%) of the amount paid for the concept of urbanization applicable at the time of the first notification and fifty percent (50%) in case of a second notification. The Management of Construction Control may refrain from issuing any construction permit in favor of the owner, and may halt the works that the latter was carrying out in the project, without prejudice to the rights of the owners who have acquired the lots of the project in accordance with what was authorized, who may indeed carry out their procedures or management. In case of need for modification of any of the aspects approved in the project, the interested party must, prior to executing them, present their proposal through the corresponding project modification request, otherwise, they shall incur a fine equivalent to two hundred percent (200%) of the value of the modification permit. Once the request is filed, it shall initiate the process described in Article 95 of the Zoning Regulations, Works and Land Use of the Central District.

Any construction, expansion, legalization, change of use, remodeling or restoration, demolition, earth movements, excavations or filling, and/or any complementary work of any project, building, residential project such as urbanization or condominium within the municipal term, shall be authorized by the Management of Construction Control. When buildings are located within the Historic Center, a favorable opinion from the Management of the Historic Center shall be required beforehand. Once the documentation and final plans are received at the Management of Construction Control, it shall issue the corresponding permit, upon prior payment that the interested party must make in accordance with what is established in the construction cost table of this Plan of Levies, 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 shall apply the corresponding percentage of the fee according to their request. In case the total cost of work is less than what is established in the work cost table, the Management of Construction Control shall apply the amount assigned in the table. In the present year, as a complement to road order efforts, the cost of the construction permit for parking spaces and/or parking areas regardless of the number of levels, shall be equal to one lempira (L.1.00), (see cost table), this without prejudice to the duty to carry out the corresponding work license procedures and the application of the fine in case of starting work without the corresponding permit, which same shall be calculated on the amount indicated in the cost table of this Plan of Levies, without the application of this benefit. If there is formal construction such as warehouses, sheds, sanitary facilities, commercial spaces, offices, etc., to these the cost table shall apply according to type of work published in this Plan. The fees corresponding to these authorizations shall be canceled as follows:

Section B Legal Notices

Section B Legal Notices

Section B Legal Notices In other cases the extension after the expiration date of the permit shall pay (will not pay the previous years in which the construction permit was not used, either because no work was started or because it is proven that said work did not make progress during the time that said license was expired). 10% of the value of the license with a minimum of L.150.00 CERTIFICATES 10 Zoning/Compatibility Certificates L. 200.00 PRE-PROJECTS Single-Family Homes L. 500.00 per project COMMERCIAL AND/OR MULTIFAMILY (Urbanizations, Closed Circuits and/or Condominiums are also contemplated) 11 From 1.00mt2 to 1,500mt2 L. 1,500.00 From 1,500mt2 to 3,000mt2 L.2,500.00 From 3,000mt2 onwards L.5,000.00

Section B Legal Notices The costs per square meter in the present tables of "work costs" were provided by the Honduran Chamber of Industry and Construction (CHICO), which must update and publish said costs annually through informational bulletin in a newspaper of national circulation or by means it considers suitable. The Municipal Alcaldía of the Central District may review and update the costs per square meter according to official publications. For the pertinent legal purposes, the CHICO, prior to publication of cost updates, shall send through official communication to the Alcaldía, the new values, this with the purpose of timely standardizing the values to be charged. Built-up 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 fee in the cases established in the work cost table, shall be the result of the sum of the existing construction plus the new area to be constructed. Once the above calculation is made, the fee to be charged shall be only for the square meters to be constructed; the existing area shall not be charged. In cases where the subdivision of the properties has not been made in the Cadastral Management, the sum of the square meters of construction of the homes requested under general cadastral codes of the project shall be made and from this result the value stipulated in the work cost table shall be applied.

The supervision carried out by the Management of Construction Control shall comprise the following aspects:

• a)

  Compliance with approved right-of-way.

• b)

  Compliance with aspects detailed in the approval opinion.

• c)

  Chart of land use and what is related to the transfer of green areas, social equipment and others. The developer shall notify the Management of Construction Control and the Infrastructure Department or whoever performs its functions, an execution schedule for urbanization works, informing the dates of pavement installation (sidewalks, streets, curbs, etc.), as well as request the developer any study to verify the resistance of materials, soil, concrete, asphalt and others related. Once the project is approved, the fee is paid and the urbanization permit is issued by the Management of Construction Control, it shall send a copy of the approved plans of the project and technical execution reports to the Infrastructure Department, which must give it follow-up throughout the entire process so that the works guarantee the required quality, at the end of the process it must comply with what is established in Article 69 of the Zoning Regulations, Works and Land Use of the Central District, for the procedure of transfer of these areas. The Infrastructure Department is responsible for the supervision of the works of the urbanization related to construction plans and technical execution report. For the purposes of supervision, the Management of Construction Control and Infrastructure Department shall establish the procedures they deem appropriate for its execution.

For non-compliance with current regulations, sanctions shall be imposed according to the following table.

Section B Legal Notices

Section B Legal Notices

Section B Legal Notices L.

Section B Legal Notices The application of fines and sanctions is made without prejudice to the obligation to carry out the corresponding construction permit procedures.

To natural or legal persons who initiate work on construction of works, changes of use, road breakage, installation of poles, antennas, cabling and permits for signs and/or billboards without the respective permit, understanding as work for this purpose what is established in the regulation, the fine established in this Plan of Levies shall apply. However, once the value of the fine is determined, it may be applied with the following benefits: The terms shall be counted from the day following the notification of the imposition of the fine for the determined infraction. Notifications of imposition of fines shall be made by payment notice. For the calculation of the aforementioned time periods, they are established in business days. The interested party must make the payment of the value of the permit and the fine or corresponding percentage of fine in the account of the Municipal Alcaldía and accredit it through the receipt to the Management of Construction Control within the established times. Natural or legal persons to whom the corresponding fine has been imposed for initiating works without the respective permit prior to the entry into force of this norm shall be granted the benefit indicated in the preceding paragraph counting the terms from the entry into force of this norm. This does not exempt natural or legal persons to whom the fine has been imposed from submitting the respective file and the requirements and documents that it requires.

Those persons who as of the date of entry into force of this norm had paid the amounts corresponding to the rate for construction license or permit and the percentage of the fine required to access payment plans and those who as of that date had already signed their payment plans, shall enjoy the same benefit, being able to be released from the rest of the obligation in accordance with the date on which they present themselves to sign the respective discharge in the Municipal Department of Justice as established in the previous article. Payment agreements that have been executed in a percentage greater than that which would correspond according to the date on which the beneficiary presents themselves to the Management of Construction Control shall be automatically considered complied with, without this implying any type of refund or credit on the excess. The applicant must pay one hundred percent (100%) of the cost of the construction permit SECTION III OF BUILDING DEMOLITION PERMITS

When a demolition is carried out by order of the Corporation or another authority, the amount established in this Plan of Levies shall be charged, imputable to the owner of the property, plus the costs incurred by the Alcaldía,

Section B Legal Notices which shall be determined by the Management of Construction Control. In case there is a property in ruins that causes damage or harm to pedestrians, risk to neighboring properties or that causes environmental pollution, the Alcaldía 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 Management of the Historic Center shall be notified. Regarding the sanctions that involve demolition of works, the provisions of the Zoning Regulations and Land Division, Works and Land Use Standards in the Central District shall apply, the penalty tables contained in this Plan and the Law of Police and Social Coexistence.

Public institutions, natural or private legal persons that occupy public roads through the installation of poles and cabling for the provision of electric power, telephone, audio, video, internet services shall pay a fee corresponding to the type of structure, according to the following classification:

Section B Legal Notices The installation of poles without the corresponding authorization shall cause a fine equivalent to one hundred percent (100%) of the value of the permit. The fee established in the preceding paragraph shall be subject to monthly payment made in the financial institutions authorized by the Alcaldía, in accordance with the payment notice issued by the Management of Construction Control, for which those obligated must provide to the Management of Construction Control, an annual sworn statement within thirty-one days (31) of the month of January of each year, which contains the number of poles, linear meters of cables installed in physical and digital format. Non-payment (permit renewal) within thirty-one days (31) of the month of January of each year shall cause a fine equivalent to one hundred percent (100%) of the value to be paid for such renewal.

It is the exclusive responsibility of the Municipality to authorize the breaking or cutting of streets, sidewalks, bridges and other properties of public use. The authorizations shall be subject to the following fees:

• a)

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

• b)

  Two hundred lempiras (L200.00) per M² or fraction, on cobblestone streets.

• c)

  Two hundred lempiras (L200.00) per M² or fraction, on cobblestone streets.

• d)

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

• e)

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

• f)

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

• g)

  Two hundred lempiras (L200.00) per m² or fraction, on sidewalks of any material.

• h)

  Two hundred lempiras (L200.00) per m² or fraction, on improved green areas.

• i)

  Fifty lempiras (L50.00) per linear meter or fraction, on curbing. The Construction Control Management shall authorize the breaking of streets, with the mandatory requirement that the interested party attach to the request the certification issued by the National Autonomous Water and Sewerage Service (SANAA) approving the service or the UMAPS, 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 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 antecedents to the Infrastructure Management, which must follow up on the process to ensure that the public way is left in equal or better conditions. If the repair is not completed within the time stipulated in the permit, the Municipality shall enforce the guarantee by proceeding with the repair of the public way. The release of the guarantee must be carried out within a period established by the Construction Control Management and the Civil Works Management no less than five (5) months nor more than ten (10) months depending on the magnitude of the break, the type of material existing on the road surface and the road hierarchy of the affected route, and once it is verified that the repair was carried out properly and is in perfect condition, at which time the period for said release shall commence. It is understood that when regional distributors, main roads, sectional roads, local roads or paved access streets with significant vehicular flow are affected, the guarantee shall be delivered after one year from when the street break has been repaired and its enforcement shall not invalidate the validity of the Commitment Act. Those who break public roads without the respective permit shall be sanctioned with the 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, whether centralized, decentralized or deconcentrated, autonomous or semi-autonomous shall be exempt from this provision, with which special agreements may be celebrated on this matter. Regarding the condition of streets adjacent to new construction projects with work amounts exceeding five (5) million lempiras, according to the cost table, the Construction Control Management shall issue a street condition report before the project begins, with the mandatory requirement that the interested party present to the Construction Control Management a Bank Guarantee of zero point five percent (0.5%) of the project budget to ensure street maintenance. After the project is executed, the interested party must request the Certificate of Conforming Work and the return of the Bank Guarantee in question, for which the case shall be sent to the Road Infrastructure Management to issue an opinion on the condition of the streets adjacent to the project and the feasibility of returning the Bank Guarantee.

This Section aims to regulate the procedure and conditions for the installation of every advertising element in authorized private space within the Municipality of the Central District through the Construction Control Management; with regard to classification, fees, fines, sanctions and final disposition thereof. These conditions are as follows:

• a)

  Every advertising element that uses as a message transmission vehicle material means of diverse kinds susceptible to attracting the attention of any persons found in open or public spaces, who transit public ways, circulate through communication routes, use private or collective means of transport and, in general, remain or move in private areas of collective use shall be subject to the norms of the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• b)

  Every advertising element must meet the technical, safety and aesthetic specifications described in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• c)

  Signs, billboards, posters, advertising notices and propaganda of any kind, within the municipal area and at the sites that are authorized, shall pay a one-time fee for the installation permit of the structure and annually for the renewal of the permit, shall pay the same amount established in the FEES Section and may cancel this item through a payment agreement executed only by the Construction Control Management, prior to the request of the interested party, which must pay at least twenty-five percent (25%) of the total amount owed at the time of signing the agreement and the remaining amount in a maximum of twelve (12) months, in no case may the current fiscal year be exceeded, and if necessary, the final number of installments must be adjusted to the number of months remaining in 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 promissory note for the total value of the debt, this being an indispensable requirement for the execution of the agreements.

According to this Plan of Arbitrios, all signs and billboards located outside the historic district shall pay a fee in correspondence with the unit of measurement, the number of faces and the type of structure, according to the following classification: For Signs: a) Advertising of any commercial activity, adhered, attached, painted or opaque flag type occupying the business or in places of public entertainment, shall be charged annually two hundred lempiras (L. 200.00) per square meter or fraction of a meter and per advertising face. Flag-type signs must follow the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District. b) Propaganda placed on marquees, awnings and opaque umbrellas of buildings shall pay annually two hundred fifty lempiras (L. 250.00) per square meter or fraction, and luminous ones three hundred lempiras (L. 300.00) per square meter or fraction of meter. Marquee, awning and opaque umbrella signs of buildings must follow the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District. c) Unipolar signs (luminous and non-luminous), attached luminous signs, totem and luminous flags shall pay annually three hundred lempiras (L. 300.00) per square meter or fraction of meters and per advertising face, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District. d) Advertising signs that are installed or painted on motor vehicles and non-motor vehicles that identify the commercial activity to which the vehicle owner's company is dedicated, in accordance with the provisions of the Construction Control Management, shall pay annually per vehicle one thousand lempiras (L 1,000.00). All vehicles operating in the interurban transport sector are exempt from payment of this fee, where the vehicle displays the company name and interurban route. e) Advertising notices that are installed or painted on motor vehicles that do NOT identify the commercial activity to which the vehicle owner's company is dedicated shall pay annually one thousand two hundred fifty lempiras (L 1,250.00) per vehicle. f) The Historic Center Management shall be responsible for authorizing and regulating the distribution of leaflets at a cost of fifty lempiras (L.50.00) for each one hundred. Distribution shall be permitted in shopping centers, public education institutions and similar ones, prior to authorization by the property owner and/or administrator of the property; likewise, this management shall authorize speaking, which consists of carrying advertising signs fixed to the body of a person (Walking Board), which shall be authorized exclusively and only in shopping centers, public education institutions and similar ones, prior to authorization by the property owner and/or administrator of the property at a cost of three hundred lempiras (L. 300.00) per day and in no case shall exceed three (3) consecutive days. (It shall not be permitted in public spaces such as: plazas, parks, promenades, streets, avenues and any other place or space of tourist interest within the Historic Center of the D.C. Failure to obtain authorization for the aforementioned activities shall generate a fine of three thousand lempiras (L.3,000.00) in order to prevent garbage contamination in the public spaces of the Historic Center of the Central District. g) For announcements or propaganda on temporary banners in private property, three hundred lempiras (L 300.00) per unit shall be charged per week and/or fraction of week. h) For announcements or propaganda on banners and signs in private property with a maximum of seven square meters, two hundred lempiras (L. 200.00) shall be charged per unit per week or fraction of week, and for announcements or propaganda on banners and signs larger than seven square meters, two hundred lempiras (L.200.00) per square meter or fraction shall be charged following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District. i) For electronic screens, four thousand lempiras (L. 4,000.00) per square meter or fraction of meter shall be paid annually, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District. j) For the installation of inflatable advertising, one thousand lempiras (L 1,000.00) per unit shall be paid; the same amount shall be paid for each week or fraction of week in which such advertising is used. Following the parameters established in the REGULATION For the Installation of Signs and Advertising Elements in the Central District. For Billboards:

• a)

  Conventional advertising billboards may be placed in private locations, inside and outside the urban area and which are located in places different from the property that occupies the establishment they advertise, shall pay annually three hundred lempiras (L. 300.00) per square meter or fraction, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• b)

  Unipolar billboards shall pay annually four hundred lempiras (L. 400.00) per square meter or fraction of advertising face, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• c)

  Advertising banners shall pay annually three hundred lempiras (L. 300.00) per square meter or fraction of meter per advertising face, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• d)

  Multiple unipolar billboards shall pay annually five hundred lempiras (L. 500.00) per square meter or fraction, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• e)

  For mini billboards, seven hundred lempiras (L. 700.00) per square meter or fraction shall be paid annually, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• f)

  MUPIS, bus stops and any advertising element installed on urban furniture, except for digital or electronic screens, shall pay annually three hundred lempiras (L. 300.00) per square meter or fraction, following the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

Signs Within the Historic Center The Historic Center Management shall be responsible for the regulation of all advertising within the Historic Center of the Central District, which shall determine the guidelines for the installation of signs, notices and propaganda of any kind, denying or approving, as the case may be, their installation, in accordance with the Historic Center Management Regulation, where the applicant is obligated to know the guidelines for the installation of signs or advertising notices. a) Opaque attached advertising, opaque flag type and painted advertising shall pay one hundred fifty lempiras (L. 150.00) per meter or fraction. b) Advertising on marquees and awnings shall pay two hundred fifty lempiras (L. 250.00) per meter or fraction. Once the design is approved, the final procedure for the sign or advertising notice installation permit request shall be given at the Construction Control Management, and must present the required documentation, in addition to making the corresponding payment for the sign or advertising notice permit.

Every request for a new sign that is authorizable and that has filed a record in the last quarter of the year shall be subject to a charge of fifty percent (50%) of the total value of the permit.

With respect to signs and/or advertising elements that did not comply with the established renewal periods, as well as installing them without the proper permit, the Construction Control Management may legalize their installation provided they comply with the parameters established in the Regulation for the Installation of Signs and Advertising Elements in the Central District. This type of legalization obtained shall be exonerated from the amount of fines, surcharges and interest generated by the installation of signs and/or advertising elements without authorization and from the fine imposed for not having paid in a timely 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 this article. Contributors, whether natural or juridical persons, owners (the property owner, the company owner of the advertising element or the advertiser, shall be jointly and severally liable) of signs, billboards and/or advertising elements installed within the Central District may avail themselves of this procedure and therefore of the benefit, who process their permit and make payments for all pending years in the amounts established in this Plan of Arbitrios, which shall be applied in the following manner: The aforementioned periods shall be understood to be counted from the day after the deadline for the presentation of the inventory and payment of the advertising elements indicated in the current Plan of Arbitrios expires. The aforementioned payment periods shall be understood to be established in calendar days.

The location or distribution of all types of signs or written advertising shall be 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, aesthetic and safety reasons, through the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• b)

  Billboards shall be subject to annual payment to be made at 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 is joint and several among the advertiser, the advertiser and the property owner 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 authority of the Construction Control Management and for future requests the advertising company must be current with this Management either by completion of agreement or full payment.

• c)

  For the presentation of a request for authorization of the installation of all types of advertising elements, all natural or juridical persons are obligated to provide to the Construction Control Management 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 thirty-one (31) of January of each year. The Construction Control Management shall establish the conditions and requirements at its discretion in which said inventory must be presented, as well as all documentation. In case of non-presentation, in addition to making the corresponding payment within the period previously established, the corresponding sanctions indicated in the Regulation for the Installation of Signs and Advertising Elements in the Central District shall be applied.

• d)

  Prior to issuing the billing for the payment of the Industry, Commerce and Services Tax, the Collection and Financial Control Management and/or the Citizen Attention Management shall request from the Construction Control Management that it indicate whether the taxpayer is current in the payment of signs, billboards, poles, cables and any other type of element installed within private property.

• e)

  Failure to obtain authorization for installation or permit renewal within the times established in this Plan of Arbitrios, as well as failure to pay and/or expiration of the payment notice issued, shall generate a fine of one hundred percent (100%) of the value of the permit or its renewal, as well as the placement of the sticker, removal of elements and blocking of the operating permit.

• f)

  The removal of the sticker on any advertising element under the concepts of unauthorized billboard, unauthorized sign, shall generate a fine described as follows:

• g)

  Every requirement issued for payment for the concepts of permits, renewals, opinions and other services whose requests were filed in prior years before the Construction Control Management shall be calculated and issued based on this Plan of Arbitrios.

• h)

  In the case of companies that install advertising without the respective permit, the Construction Control Management shall notify said non-compliance, granting a period of five (5) days to present the corresponding installation permit. Failure to do so shall result in the imposition of the sanction described in subsection e), Sanctions, as well as the sanctions established in the Regulation for the Installation of Signs and Advertising Elements in the Central District.

• i)

  Advertising installed in public space and right of way without authorization shall be sanctioned in the following manner:

• j)

  Distribution of propaganda and/or written advertising in violation of the laws, morality, good customs, or that does not include information about its source or person responsible for its distribution shall not be permitted. In case of violation of the foregoing, the propaganda and/or advertising shall be confiscated and those responsible or whoever was distributing it shall be sanctioned with a fine of three thousand lempiras (L. 3,000.00), without prejudice to the legal responsibilities that may be applicable.

• k)

  Amounts paid for permit fees and/or renewal of advertising permits that are not used cannot be used in other requests. In no case shall this municipality return the payment made for the advertising installation permit whether due to problems the permit holder may have in not being able to install the authorized advertising or that it be removed before the validity of the permit held by the interested party expires. Unless through verification in the public deed the obligations and rights acquired by the new company are indicated, whereby it may continue to enjoy the previously granted permit, solely by canceling all new advertising.

• l)

  In the case that equipment and machinery are used for the removal of advertising elements not authorized by the Construction Control Management or that do not comply with this regulation, the total value of the cost of the machinery rental used plus the value of the fine arising from the infraction for installing an unauthorized element or outside the permitted guidelines shall be charged.

The exemption of fee for Construction License to which governmental, autonomous or decentralized institutions, natural or juridical persons have a right does not exempt them from the duty they have to request the respective authorization or license from the Municipal Municipality through the Construction Control Management. It is prohibited to begin the construction of works without said authorization and the violation of this provision shall give rise to the application of the sanctions and fines established in this Plan of Arbitrios, calculated on the amount of the license fee they would have paid if they did not have the status of exempt. The status of exempt shall be accredited before the GCC through the respective agreement issued by the Municipal Corporation or a copy of the publication of the law or decree as the case may be.

To natural or juridical persons who at the date of entry into force of this Plan of Arbitrios have outstanding debts corresponding to the construction license fee, said amount shall be transferred to be charged against any tax administered and collected by the Municipal Municipality.

In every proceeding presented before the AMDC, in which certificates or other documents issued by the municipality or by other institutions whose validity is not expressly established in their text are attached, it shall be presumed that validity shall be for one calendar year or until December 31 of the year of issue of the document, whichever occurs first.

Without prejudice to what is established in 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 exploitation of material referred to in the activity described in Article 33 of this Plan of Arbitrios, one hundred lempiras per month (L.100.00) shall be paid without prejudice to the prohibition of extracting sand and stone from the bed of rivers within the urban perimeter of the cities of Tegucigalpa and Comayagüela. b. The use of explosives shall only be permitted to develop this activity when the interested party demonstrates that their use will not endanger the safety of persons and property and that, furthermore, they obtain the respective authorization from the competent offices. c. It is prohibited to extract sand, soil and stone from the bed of rivers, streams and from the surroundings of dams and creeks that cross or are located within the perimeter of the Municipality of the Central District 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 Dredging of Rivers (CONADER), which prohibit granting authorization for material extraction 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 sewers larger than sixty (60) inches and bridge boxes. Violation of this prohibition shall be sanctioned with a fine of not less than two thousand lempiras (L.2,000.00) nor more than five thousand lempiras (L.5,000.00) and total confiscation of the extracted material; in case of machinery use the fine shall be ten thousand lempiras (L.10,000.00) and confiscation of the vehicle and extracted material.

It is the responsibility of the Municipality through the Public Order Management to authorize the sale of cemetery plots in public cemeteries and any private cemetery operated by the Municipality. The interested party must cancel the corresponding amount at authorized banking institutions and subsequently proceed to register it at the Municipal Secretary. The use of plots in public cemeteries is free of charge for the population; however, when any type of construction is desired, it is necessary to acquire property rights. Property rights in public cemeteries: The plot has an area of one (1) meter wide by 2.50 meters long and shall be charged according to the following values: a) b) Permits for the construction of slabs or vaults in accordance with the design approved by the Construction Control Management in public cemetery: two hundred lempiras (L 200.00) c) Permits for installation of crosses: fifty lempiras (L. 50.00) d) Permits for the construction of railings, niches or deposits: two hundred lempiras (L.200.00) for each one and up to a maximum of six (6) niches above ground level. e) Permits for the construction of mausoleums or chapels: three hundred lempiras (L. 300.00) f) For each exhumation and compliance with the provisions of the Health Ministry in public and private cemetery: eight hundred lempiras (L. 800.00) g) Any type of certification issued by the cemetery administrator: two hundred lempiras (L. 200.00) The Public Order Management is instructed to formulate, with the technical assistance of the Construction Control Management, the regulation that shall govern the operation of the new municipal cemetery within a period of three months counted from the effective date of this Plan.

In all matters concerning markets, sales stands and temporary vendors, the Special Regulation on these matters and other provisions approved by the Municipal Corporation shall be applied, in accordance with the 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 Public Order Management in accordance with what is established in the corresponding Markets Regulation.

Temporary informal vendors shall pay a single daily fee of twenty lempiras (L.20.00) or six hundred lempiras (L.600.00) monthly. This fee corresponds to the provision of cleaning, security and administration services for informal vendors. No vendors association is authorized to collect fees for occupied spaces and other services provided by the Municipality. The ordering and control of these vendors is regulated by Agreement No. 134-02 of November 7, 2002. The Public Order Management through the Permits and Ambulant Vendors Division shall conduct the control of informal commercial activity (ambulant vendor, temporary vendor, occasional vendors, stationary vendors, etc.) in the public spaces of the Central District, as well as the cleaning, security and ordering thereof. The ordering and control of these vendors is regulated by the Instruction for the Control and Ordering of Informal Vendors.

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

The Municipal Corporation shall determine the places, zones, seasons, and hours in which street vending of any nature shall not be permitted. Likewise, it may expand, restrict, or modify the limitations of the zones that it determines as permitted. CHAPTER XI SLAUGHTERHOUSE SERVICE

The slaughter of livestock of any class within the jurisdiction of the municipality of the Central District shall only be permitted at the Metropolitan Meat Processing Plant (PROMDECA), and the user of this service must pay the rates established by the Board of Directors of PROMDECA. No meat slaughtered outside the plant may enter the city's markets. In special cases, when the meat comes from slaughterhouses authorized by the Agricultural and Livestock Health Service (SENASA) of the Ministry of Agriculture and Livestock (SAG) in other jurisdictions, entry permission shall be granted upon accreditation of the Operating License issued by the Municipal Municipality of the place of origin. The Public Order Management, together with the Municipal Justice Department, 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 after SENASA inspection that certifies its quality for consumption.

The Public Order Management may extend permits to transport live animals and in pens (cattle, equine, porcine, bovine, etc.), for which interested parties must present documentation in legal and due form (Bill of Sale, Free Transit Document), for which they must make payment in authorized financial system institutions at the rate of twenty-five lempiras (L.25.00) per head of large livestock. Twenty lempiras (L.20.00) per head of small livestock and fifteen lempiras (L.15.00) for each offspring within the municipal term. Excluded are livestock that come from any other municipality with bills of sale and purchase guides.

In the different proceedings and acts that the taxpayer carries out before the Municipality and its departments, the following shall be charged:

For a business, commercial establishment, or non-profit institution to operate within the municipal term of the Central District, it is mandatory that owners or their legal representatives previously obtain the Operating License, and must renew it in the month of January of each year. For the issuance of an operating license for a business, it is a requirement that the owner or legal representative be current with all municipal taxes, fees, binding audit adjustments, and contracts. Failure to comply with this shall result in denial or cancellation of the operating license. However, exceptions may be established in consultation with the Finance and Administration Department in cases that are duly documented and presented by the Citizen Service Management. To obtain this license, the owner or owners of the business, establishment, or institution must be current with all municipal taxes and fees, binding audit adjustments, contracts, and any other tax contemplated in special laws. For this purpose, the personnel of the Municipal Municipality shall conduct the corresponding investigation prior to the delivery of the operating license. Failure to comply with the above shall result in denial or cancellation of the operating license, without prejudice to the closure of the business or enterprise.

• a)

  The operating license shall be requested accompanied by a sworn statement of estimated sales expected to be made in the first quarter of operations for enterprises and a monthly payment of one hundred fifty lempiras (L 150.00) in the case of micro and small enterprises, if these are new businesses starting operations, no fee shall be charged during the first year of operation, nor shall the adjustment be applied based on income declared in the immediately following year of having opened the business; in other cases the sworn statement of income from the previous year shall serve as the basis. In subsequent years, the sworn statement of income corresponding to income from the previous year shall be made. The Municipal Mayor or, failing that, the Vice Mayor, through the Citizen Service Management, shall have the power to unify and simplify procedures with the different municipal departments for the processing and obtaining of the operating license in such a way that the taxpayer or applicant visits the fewest possible offices.

• b)

  For obtaining and renewing operating licenses for businesses, including main establishments and branches, except for the exceptions contemplated in this Plan, natural and legal taxpayers shall pay annually according to their declared or verified income, in accordance with the following table:

• c)

  The Citizen Service Management shall establish, in accordance with its regulations, the requirements for requesting the operating license for businesses for the first time. For billiard room licenses, carom games, electric manual or automatic gaming machines, the owner shall pay the sum of three hundred lempiras (L.300.00) monthly per unit, and for the operating license of 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 Industries, Commerce, and Services shall pay for the initial operating license or its renewal an annual fee in the following manner: 1. Churches, ministries, and religious institutions in general: ONE LEMPIRA (L 1.00). 2. Educational institutions of primary and secondary level: FIFTEEN THOUSAND LEMPIRAS (L 15,000.00) for each educational center. 3. Educational institutions of higher level (universities): THIRTY THOUSAND LEMPIRAS (L30, 000.00) for each educational center. 4. Social assistance or charitable centers: FIVE THOUSAND LEMPIRAS (L. 5,000.00). 5. Local, community, social development 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 complying with operating ordinances.

• f)

  Bars, cantinas, and establishments shall pay for the operating license or its renewal, in accordance with the following monthly rate:

• g)

  The Citizen Service Management is authorized to issue, in special cases, without prejudice to existing zoning and land use, operating licenses requested by natural and legal persons for administrative offices and fiscal addresses, solely for the purpose of notifications, residence requirement, receipt of correspondence, which may be the interested party's residence or a rental or authorization and/or use contract, and provided that the economic activities carried out by the interested party are all those that are in the nature of independent professional services (advice, consulting, purely administrative management), artisanal and artistic activities. It being an essential condition that it does not generate vehicular impact or any kind of disturbance to the surroundings, does not serve the public, and does not install signage. The authorization does not constitute a modification of land use or zoning, and the license may be revoked when the Citizen Service Management deems it appropriate.

Any temporary activity with a maximum duration of three (3) months, of a commercial, industrial, or service nature, acts or representations of any kind open to the public, carried out by natural or legal persons of any class, national or foreign, with or without profit purposes, shall require prior temporary operating license from the Municipality, which shall be processed and issued at the Citizen Service Management (AER), in accordance with the requirements established by said Management for such purposes. Temporary licenses shall be extended in accordance with the following rates:

• a)

  Patron saint festivals in the urban area shall pay five thousand (L. 5,000.00) lempiras per month and in the rural area shall pay two hundred (L. 200.00) lempiras per month; seasonal fairs twenty-five thousand lempiras (L. 25,000.00) and for artisanal fairs three hundred (L. 300.00) lempiras daily.

• b)

  Games of chance, gaming tables, including occasional bingo of any kind, installed within amusement parks, shopping centers, and others, except those installed in patron saint festivals, seasonal festivals, artisanal festivals, and mechanical games parks, shall pay five thousand lempiras (L. 5,000.00) per month or three hundred lempiras (L. 300.00) daily, having to declare the number of games to be installed.

• c)

  Temporary Operating Licenses for the installation of mechanical games in amusement parks and similar with profit purposes, except those installed in Patron Saint Festivals, Seasonal Festivals, and Artisanal Festivals, shall pay: 1. For national owners they shall pay per month or fraction L. 500.00. 2. For foreign owners they shall pay per month or fraction L. 2,500.00.

• d)

  Temporary Operating Licenses for Circuses: 1. For national owners they shall pay two hundred (L. 200.00) lempiras daily. 2. For foreign owners they shall pay one thousand two hundred (L.1, 200.00) lempiras per performance.

• e)

  For national events and entertainment such as: concerts, cultural, theatrical, and artistic presentations; sporting spectacles duly federated and accredited by CONDEPAH, as well as celebrations and events of educational centers, a Temporary Operating License shall be extended upon payment of receipt of two hundred lempiras (L. 200.00) for a maximum period of three (3) months.

• f)

  Temporary Operating License for commercial and non-commercial events of a national character such as congresses, talks, workshops, bingo games, and fashion shows shall pay one thousand lempiras (L.1, 000.00) per event.

• g)

  National events and entertainment of mass mobilizations such as carnivals, marathons, walks, competitions, races, and exhibitions of all types shall pay one thousand lempiras (L. 1,000.00).

• h)

  For Temporary Operating Licenses for Concerts and Artistic, Cultural Presentations, and International Speakers of all kinds, payment shall be made at the time of processing the license in accordance with the following table: When the events are contemplated in sections f), g), and h) of this article and provided they are developed for charitable purposes or without profit purposes, the Municipal Municipality of the Central District shall grant a discount of 10% of the total value of the license, after investigation conducted by the Citizen Service Management (AER). The organizer or host of the event must obtain the respective license at least forty-eight (48) hours before the event. Failure to comply with said deadline shall result in payment of an additional fine of five percent (5%) of the total value of the license. Event organizers who fail to process the license with this municipality shall pay an equal fine without prejudice to payment of the fee. Property owners where these types of events are held shall request the display of the corresponding license from the organizers or hosts at the time of entering into the contract. The property owner who authorizes the development of the event without the corresponding license shall pay a fine of twenty-five thousand lempiras (L. 25,000.00). The foregoing without prejudice to the application of sanctions established in the Law of Municipalities and its Regulations and the Law of Police and Civic Coexistence.

To natural or legal persons, non-profit institutions, and any other that operates a business or commercial establishment and offices of any type without the corresponding operating license, a fine shall be applied in accordance with income in compliance with the following table: If after one month, in the case of permanent activities, and five (5) days in the case of temporary activities, from the imposition of the aforementioned sanction the respective license has not been acquired, double the imposed fine and closure until normalizing their legal situation shall be applied. In case the non-compliance persists for thirty (30) calendar days, the definitive closure or closure of the business or activity shall be proceeded with. To ensure compliance, seals shall be fixed or additional measures such as placement of chains and padlocks may be carried out; if the same are removed or violated without authorization of the competent authority, the infractor shall be sanctioned with a fine of two thousand lempiras (L. 2,000.00) and in case of recidivism double the fine.

Natural or legal persons, prior to the process for obtaining the license to carry commercial firearms; revolvers of all types, short caliber, light rifles of all types, long caliber, and shotguns of long and short caliber, as well as any other legally permitted firearm, shall pay for registration or change of ownership a fee of three hundred lempiras (L.300.00). For persons residing in the Central District, only the license extended by this Municipality shall be valid. It is the responsibility of the Municipal Secretary to maintain the Firearm Registry.

The Municipality is responsible for the title, use, regulation, and administration of urban roadways; it is the responsibility of the Department of Territorial Planning to monitor compliance with the provisions of this Plan and other applicable norms on the matter. Likewise, it corresponds to 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 Law of Police and Civic Coexistence. Furthermore, what concerns road signalization, installation and maintenance of traffic lights, and the establishment of circulation directions. The Urban Mobility Management, through the Section of Road Engineering, shall grant permission for the placement of buoys, speed bumps, loading and unloading parking spaces, and through the Section of Transport Engineering shall grant permission for urban and interurban public transportation, collective taxi points, minibuses, and other uses within the metropolitan area. For the granting of the respective authorizations, coordination shall be made, as applicable, with the National Directorate of Roads and Transportation 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:

• a)

  For loading and unloading permits for light cargo and unloading vehicles such as pick-ups, minivans, sedans, minibuses, small trucks, and similar, SIX HUNDRED LEMPIRAS (L.600.00) annually.

• b)

  Heavy cargo and unloading vehicles of two axles such as trucks, vans, and similar, and value transfer vehicles, SEVEN HUNDRED FIFTY LEMPIRAS (L.750.00) annually.

• c)

  Heavy vehicles of three or more axles for loading and unloading such as wagons, trailers, tractor units, and similar, NINE HUNDRED LEMPIRAS (L.900.00) annually. The authorization for parking these vehicles shall contemplate a schedule of 7:00 p.m. to 6:00 a.m. For each temporary parking permit between the hours indicated in the preceding paragraph, ONE HUNDRED LEMPIRAS (L.100.00) daily per unit shall be charged, except in cases of donations qualified by the Administration of the Municipality.

• d)

  For parking permit authorization of collective taxi points, six hundred lempiras (L.600.00) per unit annually shall be charged; for interurban minibuses and buses, seven hundred fifty lempiras (L.750.00) per unit shall be charged annually, a rate with the right to twenty-five (25) linear meters of parking. In each permit, the Section of Transport Engineering shall order the parking modalities for each motorized unit, in accordance with the corresponding Municipal Traffic Regulation and ordinances issued by the Corporation.

• e)

  For authorization for the placement of road signs in residential areas that request it, for speed control after inspection, five hundred lempiras (L.500.00) shall be paid. The same concept shall apply for the installation of curb retention tubes in sidewalks and public roads, paying one hundred lempiras (L. 100.00) for each one. In the case of authorizations established in sections a) and b), when it is for the first time, its equivalent value shall be charged for the year, according to the date of its presentation when applicable.

The Urban Mobility Management shall notify the National Directorate of Roads and Transportation of all permits requested and issued that are not withdrawn within thirty (30) days following their authorization, so that vehicles carrying out the respective activity cannot exercise it until they obtain said permit. In case of non-compliance, the Municipality shall sanction the infractor and the Road and Transportation Police shall seize the unit.

Obtaining the respective permit for transportation or loading and unloading during the month of January of each year is mandatory; otherwise, the individual becomes liable to the fine established in this Plan. Taxis, as well as the owners of vehicles that execute in exclusive parking, the activity of loading and unloading or the boarding or disembarking of passengers without the corresponding permit, shall be sanctioned with a fine equivalent to fifty percent (50%), on the amount to be paid for this concept, in addition to immediately requesting the aforementioned permit, which shall be granted and charged for the period of the complete year. In the case that natural or legal persons install cones, rims, signs, etc., used as signalization to reserve parking spaces, these shall be seized and returned to their owners after payment of one hundred lempiras (L. 100.00) fine for each.

Carrying out the loading and unloading activity outside what is established by the regulation, in which schedules and capacity of heavy vehicles to the urban area are established, shall be sanctioned in the following manner:

• a)

  Minor violation.- Fine of one thousand two hundred lempiras (L.1,200.00), which corresponds to the following violations: 1. Carrying out loading and unloading operations causing unnecessary noise and dirtying the public road. 2. Making maneuvers that obstruct free traffic at the moment of parking the units either on public roads or on private properties. 3. Carrying out loading and unloading operations hindering the circulation of vehicles and/or pedestrians.

• b)

  Serious violation.- Fine of three thousand lempiras (L. 3,000.00), which corresponds to the following violations: 1. Carrying out loading and unloading operations outside the permitted hours. 2. Carrying out loading and unloading operations outside the place authorized for such. 3. Excess of the time limit authorized to carry out loading and unloading operations. 4. Non-compliance with essential authorization conditions.

• c)

  Very serious violation.- Fine of six thousand lempiras (L. 6,000.00) which corresponds to the following violations: 1. Carrying out loading and unloading operations with vehicles of more than twelve and one-half tons without special or express authorization, or carrying out such outside the places authorized for such. 2. Carrying out loading and unloading operations regarding any type of construction activity without the respective authorization; without the need to seize the violating unit. 3. Carrying out loading and unloading operations with vehicles that due to their dimensions are not authorized in the zone. 4. Using authorization issued to another person. 5. Falsification of authorization or card issued by this municipality.

The Urban Mobility Management is authorized to seize vehicles, scrap metal, other property, and objects that are found abandoned on public roads, or those that although having a known owner are parked in the passage of vehicles and pedestrians. Likewise, 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 be sanctioned, provided the resident does not permit it; in the case of the curb painted blue, it shall be designated to permit parking for any private or particular vehicle or similar vehicles that carry out loading and unloading. The Urban Mobility Management is authorized to, through the use of tow trucks or other transport mechanism, move the vehicles, scrap metal, property, or objects seized to the property or properties it may enable for such purposes, transferring the cost incurred to the owner of said property or objects, plus a fine of four hundred lempiras (L.400.00) for vehicles parked in prohibited or restricted places for such purpose. On the other hand, drivers of vehicles that are parked on the sidewalk in any sector of the Central District shall be sanctioned with three thousand lempiras (L.3000.00). Equally, the sum of one hundred lempiras (L 100.00) shall be charged for each calendar day in which the property seized is in the Municipality's warehouse, computing within the fine the day on which the owner removes the seized property or object. The Urban Road Management is instructed to conduct the pertinent negotiations so that the charge for towing or removal mechanism mentioned in the preceding paragraph in no way exceeds eight hundred lempiras (L.800.00). Likewise, infractions for badly parked vehicles may be charged through the placement of immobilizing devices.

CONSTITUTES AN INFRACTION: 1. Performing activities with closure of roadways without the respective permit issued by the Urban Mobility Management shall be fined with the equivalent of one minimum wage. 2. Making a route change in an activity authorized by the Urban Mobility Management that involves street closure shall be fined with the equivalent of one minimum wage and with one year of penalty in which the same activity will not be authorized. 3. Making modifications to the horizontal and vertical signage that is installed by the Urban Mobility Management shall be fined with the equivalent of one minimum wage. TITLE VII RATE FOR REGISTRATION OF CATTLE BRANDS

Cattle branding irons must be registered with the Secretary and shall be paid as follows: Registration for the first time L. 150.00 Renewal of Registration L. 75.00 Brand Marks L. 75.00 Authorization to manufacture cattle branding irons L. 50.00 TITLE VIII CHAPTER I FINES AND SANCTIONS

The verification of a declaration having been presented with false information for the purpose of evading municipal tax shall be sanctioned with a fine equivalent to one hundred percent (100%) of the tax evaded 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 according to the following:

• a)

  The owners of all classes of animals that circulate on public roadways, 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 highways, fifty percent (50%) of the fines established in the above classification shall be charged. Access and penetration roads are excluded. If the owner reoffends by allowing the vagrancy of animals of his property, the value of the stated fines shall be doubled. The official or employee who fails to apply the fine at its correct value for reoffense shall be jointly and severally liable for its payment.

• b)

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

• c)

  For construction of platforms for garage entry 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 damage caused to the street or sidewalk.

• d)

  Taxis as well as business owners who execute loading or unloading activities in Tegucigalpa or Comayagüela without the corresponding permit shall be sanctioned with a fine equivalent to fifty percent (50%) of the value to be paid for this concept, in addition to immediately requesting the aforementioned permit, which shall be granted and charged for the entire year period.

• e)

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

• f)

  For entering vehicles on pedestrian streets to perform any type of activities without authorizations, a fine of Five Hundred Lempiras (L.500.00) shall be imposed.

• g)

  For damage caused to the surface of the street grade, whether for washing vehicles, installation of obstacles or others, a fine of Five Hundred Lempiras (L.500.00) shall be imposed each time.

• h)

  For installation of retention pipes on public roadways without authorization, a fine of One Hundred Lempiras (L.100.00) shall be imposed for each pipe, without prejudice to their removal.

• i)

  For occupation of public roadways to perform any type of event without proper authorization, the following shall apply: 1. For obstructing vehicular traffic, a fine of Two Thousand Lempiras (L.2,000.00). 2. For obstructing pedestrian traffic, a fine of One Thousand Lempiras (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 or vehicles that transport garbage and/or construction materials shall pay a fine of Five Hundred Lempiras (L.500.00) each time the unit is found without a canvas cover.

• l)

  For properties without sidewalks or with damaged sidewalks in paved zones, the owner or occupant in any capacity 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 Justice Department, a fine of Five Thousand Lempiras (L.5,000.00) shall be imposed.

• n)

  For dumping garbage, rubble or waste of all kinds on 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 offending person removing the dumped material. o) For washing vehicles on public roadways, Five Hundred Lempiras (L.500.00) each time it occurs. p) For transporting beef or smaller livestock to the Central District without the respective hygiene and safety measures, confiscation of the product shall proceed. q) For installation of pipes, chains or similar items in communal parking lots of urbanizations, a fine of Three Hundred Lempiras (L.300.00) shall be charged for each pipe, chains or similar items, without prejudice to their removal at the cost of the offender. r) Buses and taxis operating points without authorization from the Urban Mobility Management shall be fined with One Thousand Lempiras (L.1,000.00) per unit, the same being subject to confiscation with the assistance of the Road and Transportation Department. s) Every workshop dedicated to automotive repair activities must keep vehicles within the establishment. For obstructing and using public sidewalks as an extension of automotive repair workshops with any type of vehicle, a fine of One Thousand Lempiras (L.1,000.00) shall be applied. t) Confiscation of the vehicle or vehicles shall be imposed on workshops that use public sidewalks and green areas as an extension of their workshop, and workshops that reoffend more than two (2) times shall have a fine of Five Thousand Lempiras (L.5,000.00) applied, without prejudice to confiscation of the vehicle and closure of the business.

The Municipal Justice Department shall order the suspension, closure or demolition of works under construction for the following causes: a. Incurring in falseness in the data entered in the permit request. b. Executing a work without the due license or approval, or with special, falsified or altered permits. c. Executing a work without a director when necessary. d. Executing works that endanger the life or property of persons without due precaution. e. Preventing the Municipality's personnel from carrying out their functions. f. Using a construction that has been declared to be at high risk without authorization for use or certificate of occupancy, and g. Building in areas declared Cultural Patrimony or buildings denominated 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. Once the granted period expires without the differences being corrected, 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 shall result in a fine of Two Thousand Lempiras (L.2,000.00) daily;

• b)

  Obstruction of traffic through destruction of the roadway or construction of any kind shall result in a fine of Five Hundred Lempiras (L.500.00), independently of the offender enabling passage by leaving the roadway in perfect conditions. c. Urban transport units must instruct their passengers not to throw garbage on the street and when this occurs the offender shall be sanctioned with Fifty Lempiras (L.50.00) each time.

Non-payment of the fines and sanctions established in this Arbitrios Plan generates a surcharge of interest equal to two percent (2%) annually. TITLE IX OF CONTROL, ADMINISTRATION AND OVERSIGHT CHAPTER I OF DECLARATION

Taxes are determined by means of sworn declarations that taxpayers must submit. The Property Tax is excepted, in which determination is made based on the data contained in the Cadastral Management or in declarations presented by owners of non-cadastred properties.

For purposes of the previous article, the Municipality shall make the corresponding forms available to taxpayers. The lack of forms does not exempt taxpayers from the obligation to present their declarations within the terms established in the Law; in this case, taxpayers may present their declarations on plain paper, containing the data necessary 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 such taxes in advance. Provided that such payment is made in full 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, to be entitled to this discount, taxes must be paid at the latest:

• a)

  The Property Tax in April or before.

• b)

  The Personal Tax in January or before.

• c)

  The Tax on Industry, Commerce and Services in September of the previous year or before when paid for the entire year and proportionally when payment is made after this date. Other municipal taxes and fees must comply with the four-month advance minimum.

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 greater efficiency and effectiveness in their collection, through the most appropriate modern technologies, simplifying the taxpayer's compliance with their obligations and guaranteeing the Municipality the security and control of the system. For these purposes, the Municipal Mayor is authorized to sign the contracts that are most convenient and economical for the Municipality, and must inform the Municipal Corporation.

General provisions regarding payments:

• a)

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

• b)

  Every payment that the Municipality or its authorized branches order for fines or sanctions, licenses or permits must be made no later than ten (10) business days after notification. The present provision is excepted by expressly established deadlines that contradict it.

• c)

  It is prohibited for the Municipality's branches to receive any type of cash payment from taxpayers.

• d)

  Once the adjustment, assessment, verification or review of an obligation in favor of the Municipality is final, the payment period shall be three (3) business days.

In the exercise of its oversight function, the Municipality, through the corresponding offices, has the authority to: a. Organize the administrative collection of taxes, fees, contributions, services and other charges. b. Control the rates set by the services it provides and other charges. The rates for these services shall be controlled and overseen through the opening of special bank accounts for each service. c. Require from taxpayers the information, documents, books, contracts, payrolls, sworn declarations presented in other municipal terms, and others that are indispensable to establish tax obligations, in accordance with what is established in the Law on Accounting and Audit Standards, established in Decree No. 189-2004 and its Regulations. - Requirements include third parties who have knowledge of the operations subject to investigation. d. Apply in strict sense the tax provisions issued by the Municipality itself. To this effect, attention shall be given to its purpose, its economic significance and the precepts of public law. e. Facilitate the taxpayer's compliance with tax obligations through proper dissemination of current provisions. f. Demand payment of taxes, contributions, services and other charges that are final, implementing efficiency modalities and modern collection systems. g. Verify the content of sworn declarations, applying the analyses or investigations it deems convenient. h. In the event that taxpayers do not present sworn declarations or corresponding information, estimate ex officio and by presumptive income their tax obligations, using to this effect the income declared in previous fiscal years or in consideration of the economic activity they perform; the foregoing without prejudice to the reports requested from DIRRSAC or SAR regarding declared income. i. Impose on violators of the approved provisions the sanctions in accordance with the laws, agreements or current provisions. j. Hear and resolve the inquiries formulated by taxpayers. k. Take appropriate actions as a consequence of its tax administration function. l. Establish the measures necessary to improve the administration and oversight of the municipal tax system. For these purposes, the integrated current account system must be organized by taxpayer, including user applications making use of an information services administration. m. Any other functions that the Law or this Plan may confer.

The Finance and Administration Department or the branch it designates shall conduct all necessary and useful diligences or investigations to examine the declarations presented by taxpayers.

In the exercise of its functions, the municipal employee must comply with the norms and instructions that the immediate or superior authority issues within the framework of the law, being faithful in verifications or reviews and safeguarding municipal interests. In case of doubt, shall be guided by the principles of justice and equity without contravening legal norms.

Once the review is completed, the employee shall submit to his immediate superior a detailed report thereof, shall state the reasons on which the formulation of the tax adjustment is based when such adjustment is warranted, and shall clearly indicate the amount to be collected or refunded, by means of a credit note.

The adjustment resulting from the review shall be brought to the knowledge of the taxpayer by personally delivering him a complete copy with its grounds, or he 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 individuals arising from tax obligations, by virtue of the effects of the Law of Municipalities and subordinate regulations shall prescribe in the period of five years, being interrupted only by judicial actions. For the purposes of this article, the application of prescription criteria must be requested in each particular case by the taxpayer. As long as it is not requested, the Municipality may demand payment of what is owed. The Municipal Secretary in coordination with the Finance and Administration Department shall establish the requirements for pertinent requests and shall prepare an expedited procedure for their resolution. TITLE X OF CERTAIN PROCEDURES CHAPTER I OF FILING

The initiation, substantiation, resolution, notification, and use of remedies that must be followed in the processing of administrative files carried out in the Municipality of Central District shall comply with the provisions of the Administrative Procedure Law and the pertinent provisions of the Law of Municipalities and its Regulations.

In compliance with what is set forth in the preceding article, interested parties shall submit their petitions, documents, manifestations, and others that correspond, to the Municipal Secretary or to the office designated for such purposes, who shall issue the opening order based on the principles of procedural economy, promptness, efficiency, and following the terms indicated by Law for its prompt resolution. This office shall likewise comply with what is established in the Administrative Procedure Law to notify the interested party of any incident, lack of requirement, or any defect in the documents and papers presented. To admit claims, reconsiderations of appraisal, or challenges that arise from the assessment or liquidation of any tax or penalty, the interested party must previously make payment of the amount fixed 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 filed by the taxpayer, once its resolution acquires the status of final and binding. In case of non-compliance with the provisions of the preceding paragraph, no action shall be taken on the remedies, claims, reconsiderations of appraisal and/or challenges that arise from the assessment or liquidation of any tax or penalty. CHAPTER II OF CLAIMS FOR OVERPAYMENT OR IMPROPER PAYMENT

Taxpayers who believe they have paid in excess or improperly taxes, contributions, services, or other fees shall comply with the directives established by the Finance and Administration Department for the application of offsets and recognition of credit notes, where they shall file.

The recognition of overpayment or improper payment shall be made by means of a credit note resolution, which the Accounting Department shall execute immediately and without further proceeding, applying 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 established procedure and under the same parameters of Article 142. Without prejudice to what is established in this article, the municipal mayor is authorized, through the procedure he establishes in accordance with Law, to regularize ex officio through the Finance and Administration Department, by means of the Income and Expenses System, those debts that the Municipality has with individuals and which these in turn maintain pending payment obligations with the Municipality. TITLE XI OF PROHIBITIONS CHAPTER UNIQUE OF INFRACTIONS AND PROHIBITIONS

All prohibitions regarding construction, subdivisions, urbanizations, public appearance, environment, zoning, and ecology shall be governed by the respective Ordinances and regulations. Their violation shall be subject to the fines fixed in this Plan.

The Municipality is the owner of every tree or plant planted in public thoroughfares; consequently, no person may fell or cut trees without prior authorization from the Municipal Environmental Management Unit. The felling of trees, shrubs, and bushes in the hydrographic basins that cross the urban centers of the Municipality is prohibited. Violation of this provision shall be fined with a sum of three thousand Lempiras (L. 3,000.00) for each square meter deforested.

It is strictly prohibited:

• a)

  To advertise announcements by means of loudspeakers or tape recorder 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) per year. Violation of these provisions shall be fined with one thousand five hundred Lempiras (L. 1,500.00).

• b)

  The use of horns adapted to the vehicle's original horn and those placed outside the body work, as well as sounding horns in the following areas: hospitals, health centers, nursing homes, schools, colleges, and other educational centers, public buildings, religious and cultural centers and similar establishments, 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, megaphones, sirens, etc., in residential zones between 6:00 p.m. and 6:00 a.m., except for ambulances, fire trucks, police, and others authorized by law.

• c)

  To conduct the practice of marches and school exercises in the streets and public thoroughfares without the respective permit from the Municipality.

• d)

  It is prohibited to locate businesses such as retail stores, billiard halls, bars, discotheques, in addition to any business that offends morality and good customs at one hundred meters from educational centers, churches, and monuments within the Historic Center of Central District, for which reason these centers shall have their operating permit cancelled. For said closure, the pre-existence of businesses that create the incompatibility must be taken into account, in such a manner that rights previously recognized to them by the opening of new educational centers, churches, or monuments are not violated.

• e)

  Kino games to which a fine of two thousand Lempiras (L. 2,000.00) and confiscation of the implements shall be applied. It is prohibited to locate businesses such as retail stores, billiard halls, bars, discotheques, in addition to any business that offends morality and good customs at one hundred meters from educational centers, churches, and monuments within the Historic Center of Central District, for which reason these centers shall have their operating permit cancelled.

Without prejudice to what is established in this Plan, the placement of commercial and political advertising is prohibited in the following locations:

• a)

  On rocks, trees, and other natural elements.

• b)

  On curves, slopes, vehicular and pedestrian bridges, poles, at-grade vehicular crossings, intersections in the right-of-way and traffic signals, except for 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 item shall be sanctioned with a fine of up to five thousand lempiras (L. 5,000.00) against the natural or legal person owning such advertising. As well as the obligation to immediately remove it.

• d)

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

• e)

  On vehicle windows that obstruct the driver's vision or on luminous devices (brake lights, traffic 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 cost of the violator.

It is strictly prohibited:

• a)

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

• b)

  In case of continuation of construction and remodeling work on real property not authorized by the Management of the Historic Center and/or that the changes made are contrary to the guidelines of the Historic Center Management Regulations, 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 cost of demolition to the violator. For the demolition of a building within the Historic Center, the procedure shall begin in the Management of the Historic Center, which shall issue a favorable or unfavorable opinion on the same, in accordance with the Honduran Institute of Anthropology and History, with the Construction Control Management being the entity responsible for the issuance of the respective permits. Demolition carried out without the respective authorization shall cause 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 a demolition is carried out by order of the Municipal Corporation or another authority, the amount established in the Plan of Arbitrios shall be charged to the owner of the property, plus additional costs.

• c)

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

• d)

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

• e)

  The use of loading or unloading areas is prohibited between 7:00 a.m. and 7:00 p.m. without the respective authorization from the Management of the Historic Center of Central District, as well as loading and unloading in areas not designated as such; therefore, a fine of six hundred Lempiras (L. 600.00) shall be imposed each time, in coordination with the Street Planning Department of the Mayor's Office and the General Traffic Department.

• f)

  Dumping construction debris obstructing free passage through streets and sidewalks shall pay a fine of L. 3,000.00; as well as the obligation to immediately remove it.

For failure to maintain inventoried buildings that cause damage to third parties, a fine shall be imposed from five thousand lempiras (L. 5,000.00) to twenty-five thousand five hundred lempiras (L. 25,000.00), without prejudice to the corresponding indemnifications.

The Management of the Historic Center is responsible for issuing authorization of land use compatibility for the establishment of businesses or the renewal of operation permits within the Historic Center, being essential for the issuance of the business operation permit or its renewal. Such certificate shall be issued based on current urban zoning for the amount of two hundred lempiras (L. 200.00).

The Municipal Alcaldía will deliver a solvency certificate 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 or registered in the Municipality that sells, produces or has income in the Central District, shall be accepted a payment certificate or exemption 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. Similarly, the solvency of mixed-use or commercial properties not owned by the applicant shall be verified for the purpose of issuing Business Operation Permits. However, exceptions may be established in consultation with the Finance and Administration Department in cases that are properly documented and presented by the Citizen Services Management.

The Municipal Alcaldía, in application of the Law of Municipalities, its regulations and the Civil Code, may issue a Certificate of Neighborly Status to those who request it and are residents of the municipality. The Certificate of Neighborly Status may be personal and of the deceased; for its issuance, the interested party must submit their request to the Collection and Financial Control Management, where they must qualify the documentation attached to prove such residence and issue such certificate when applicable. The Municipal Secretariat shall establish the corresponding requirements, of which it shall inform the Management in charge; however, it must prepare a regulation to be approved by the Municipal Corporation within three (3) months counted from the date of entry into force of this Plan. In the case of certificates requested for use abroad, as well as for the purpose of pensions, scholarships, accrediting residence of minors and other special cases, the Collection and Financial Control Management shall refer the file to the Municipal Secretariat, who shall qualify and issue the certificate if applicable.

The service of the Risk Evaluation Management shall be charged as follows:

For better administration of taxes, the Municipal Corporation, the Alcalde or the Vice-alcalde in his absence, may establish a policy of correspondence and cooperation with other municipalities, as well as with the Tax Administration Service (SAR), the Superior Court of Accounts, the Association of Municipalities of Honduras and other State agencies.

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

No institution, whether for profit or nonprofit, may be exempted from, granted relief from, reduced, forgiven or have modified the payment of taxes, except in those cases permitted by Law, without prejudice to the payment arrangements established in Article 121 of the Law of Municipalities and Article 76 of its Regulation.

For the purpose of obtaining the operation permit for nonprofit legal persons or those protected by fiscal benefits granted through a special law, the Collection and Financial Control Management shall issue a certificate stating that they are not subject to the tax on industries, commerce and services; expressly establishing that the certificate issued does not include exemption from municipal service fees. The request for a certificate must be submitted to the Collection and Financial Control Management, accompanied by the requirements previously established by said Management for initial registration and subsequent renewals based on the legal nature of the beneficiary and the origin of the benefit. The procedure referred to in the preceding paragraph must be carried out every year, during the month of January of the year corresponding to that for which the exemption is requested. Taxpayers who request exemption from the Tax on Industry, Commerce and Services after January 31st of the year shall be subject to a fine equal to one minimum wage according to the classification of economic activity established in the minimum wage law. A period of three (3) months is granted counted from the date of entry into force of this Plan, for those legal persons benefiting from tax exemptions to formalize their requests, who, having been required to request recognition of their benefits corresponding to prior fiscal years, failed to do so. The Collection and Financial Control Management is responsible for responding to such requests and making the corresponding system-level updates. Those who do not make use of this period shall be subject to the same fine cited in the preceding paragraph, without prejudice to the issuance of the requested Certificate.

Taxes, fees, fines and other charges must be paid at duly authorized banking institutions, without need for prior notice and without prejudice to the procedures that are adopted. The terms or periods for making such payments are those established in the laws, regulations or in this Plan.

The tax obligations of taxpayers are extinguished by payment, offset, prescription or by any other means established by Law.

The debt originated by the application of taxes, contribution for improvements, fees and municipal 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)

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

• b)

  Keep, when applicable and in accordance with the Commercial Code, the books and other mandatory and necessary accounting records, as well as those that the Corporation requires 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 Corporation so provides. Comply with any other provision issued by the Corporation.

The use of sidewalks, roads, green areas of the city for the display of merchandise or any other objects that obstruct the passage of pedestrians is strictly prohibited, or the use of the facades of properties in the historic center for the placement of merchandise. Violation of the above shall be sanctioned with a fine of two thousand Lempiras (L. 2,000.00), without prejudice to the retention of objects, merchandise or products that cause obstruction to the visibility of properties located within the Historic Center of the Central District. In case of recurrence, in addition to the fine, temporary closure of the responsible establishment may be applied.

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 the responsibility of the Finance and Administration Department through the Revenue Collection and Financial Control Management, through the division that it designates. For these purposes, the different departments responsible for the municipality that intervene in the collection process, given the nature of their functions, must comply with the system and procedures established by said office.

In accordance with this Tax Code, the Municipal Government of the Central District, in the exercise of collecting municipal services rendered or any other debt in its favor, may take the following actions:

• a)

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

• b)

  Place on the exterior of commercial establishments or properties belonging to natural or legal persons in default, signs or visible tape expressing their status of delinquency.

• c)

  The temporary closure and cancellation when appropriate of the Operating Permit of commercial establishments that, once required due to default in the payment of municipal fees, do not comply with such requirement; said temporary closure and cancellation of the operating permit shall be carried out in accordance with the provisions of the Police and Social Coexistence Law.

• d)

  Order through the Revenue Collection and Financial Control Management the temporary closure of commercial establishments of any kind, administrative offices, branches, quarries, urban development projects, when, once required for payment by said management, the taxpayer does not make the payment effective within the period established in the requirement. If the measure persists for more than 30 days due to lack of payment, it shall be grounds to request that the Citizen Services Management 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 Revenue Collection and Financial Control Management, to be credited to annual settlements and for the payment of municipal taxes and fees; likewise, the Citizen Services Management shall proceed to block any procedure that the delinquent taxpayer presents before the Municipal Government in relation to insolvency in accordance with the institution's records.

In accordance with Article 4, numeral 9, of the Police and Social Coexistence Law, the Public Order Management shall be responsible for implementing measures to control vagrancy of domestic animals, and must establish the shelters that may be necessary, being able to request support and collaboration from social or charitable institutions. The collection of the corresponding fee for the rescue and maintenance of animals that are claimed by their owners is authorized. The mechanism for collecting this fee shall be implemented in coordination with the Finance and Administration Department. The Public Order Management in coordination with the Municipal Department of Justice shall apply the sanctions provided for in the Police and Social Coexistence Law for these cases. SECOND ARTICLE: This Tax Code shall be effective as of the first (1) day of January of the year two thousand twenty (2020) and any modification thereof must be previously submitted for approval by the Municipal Corporation. THIRD ARTICLE: All Municipal provisions of equal or lesser legal hierarchy that oppose this Tax Code or issued before the effective date of this instrument are hereby repealed. FOURTH ARTICLE: This Agreement is of immediate execution and must be published in the Official Journal "La Gaceta." BE IT PUBLISHED AND COMMUNICATED. Seal signed Eva del Carmen López Peraza, Mayor, by Law; and the Aldermen: Juan Carlos García Medina, José Javier Velásquez Cruz, Nilvia Ethel Castillo Cruz, Carlos Roberto Amador, Martín Stuar Fonseca Zuniga, Jorge Alejandro Aldana Bardales, Osman Danilo Aguilar Ponce, Joselyn Marisol Ardón Munguía. Seal signed Cossette A. López-Osorio A., Municipal Secretary. Extended in the city of Tegucigalpa, municipality of the Central District on the twenty-seventh day of the month of December of the year two thousand nineteen. COSSETTE A. LÓPEZ-OSORIO A. MUNICIPAL SECRETARY OF THE C.D. 30 D. 2019.