Relating to the applicability of the sales and use tax to certain insurance services.
Impact
The implementation of SB1083 is expected to significantly influence how insurance services are taxed in Texas. Specifically, it aims to ensure that certain services that do not fall under the strict definition of insurance will not be subjected to sales and use tax, thus alleviating some of the financial burdens on businesses and professionals in the sector. However, it also retains existing tax liabilities for services rendered before the law's enactment, maintaining continuity in tax enforcement where due.
Summary
SB1083 addresses the applicability of the sales and use tax to specific insurance services in Texas. The bill clarifies definitions within the Tax Code, particularly about what constitutes an insurance service. By amending Section 151.0039, it distinguishes between traditional insurance-related services and other activities that may be tangentially related to insurance, such as those performed by certified public accountants. This legislative change is intended to refine the tax implications associated with various service providers in the insurance industry.
Sentiment
The sentiment surrounding SB1083 appears to be generally positive, particularly among the stakeholders directly affected, such as insurance companies and certified public accounting firms. Supporters argue that the bill brings much-needed clarity and fairness to the tax code, ultimately benefiting the economy by enabling clearer definitions and reducing potential tax burdens. Conversely, there may be concerns among other sectors about the bill's broader implications on tax revenue and accountability.
Contention
While SB1083 received overwhelming support during voting, it demonstrates the ongoing complexities and nuances of tax legislation. One point of contention revolves around how these definitions might affect compliance obligations for service providers. As the Tax Code is continually revised, stakeholders must remain vigilant in understanding how new definitions and exemptions could potentially alter their operational frameworks.
Relating to the exclusion of certain medical services performed to determine an appropriate level of workers' compensation benefits from sales and use taxes.
Relating to the exclusion of certain medical services performed to determine an appropriate level of workers' compensation benefits from sales and use taxes.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.
Relating to the establishment of the Education Savings Account Program to allow certain children to use public money to pursue educational alternatives to public schools and an insurance premium tax credit for contributions made for purposes of that program.