86R3389 GRM-D
By: Dutton H.B. No. 1560
A BILL TO BE ENTITLED
AN ACT
relating to a tax on title insurance policies written by title
insurance companies to fund housing programs and services; imposing
a tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 3, Insurance Code, is amended
by adding Chapter 282 to read as follows:
CHAPTER 282. TITLE INSURANCE TAX FOR HOUSING PROGRAMS AND SERVICES
Sec. 282.0001. TAX IMPOSED; RATE. (a) A tax is imposed on
the issuance of each title insurance policy that is written for
delivery in this state by a title insurance company authorized to
engage in business in this state and for which the full basic
premium is charged.
(b) The rate of the tax is $1 on each policy described by
Subsection (a).
(c) The tax imposed by this section is in addition to other
taxes, fees, and assessments imposed on a title insurance company.
Sec. 282.0002. COLLECTION OF TAX. The comptroller shall
collect the tax.
Sec. 282.0003. TAX DUE DATES. (a) A title insurance
company shall pay the tax on an annual, semiannual, or more frequent
periodic basis, as determined by the comptroller.
(b) The comptroller may require semiannual or more frequent
periodic payments only from a title insurance company whose tax
liability under this chapter for the preceding year was at least
$2,000.
Sec. 282.0004. DEPOSIT AND USE OF TAX REVENUE. (a) The
comptroller shall deposit taxes collected under this chapter as
follows:
(1) one-fourth to the credit of the foundation school
fund; and
(2) the remainder to the credit of the general revenue
fund.
(b) Money deposited under Subsection (a)(2) may be
appropriated only for programs and services designed to reduce
homelessness and housing insecurity.
Sec. 282.0005. RULES. The comptroller may adopt reasonable
rules to implement this chapter, including rules providing for the
form and manner of remittance of the taxes imposed by this chapter.
SECTION 2. Not later than December 1, 2019, the comptroller
of public accounts shall adopt rules necessary for the
implementation and administration of Chapter 282, Insurance Code,
as added by this Act.
SECTION 3. Chapter 282, Insurance Code, as added by this
Act, applies to a title insurance policy written on or after January
1, 2020. A title insurance policy written before January 1, 2020,
is governed by the law in effect when the title insurance policy was
written, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2019.