| 1 | 1 | | 86R3389 GRM-D |
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| 2 | 2 | | By: Dutton H.B. No. 1560 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a tax on title insurance policies written by title |
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| 8 | 8 | | insurance companies to fund housing programs and services; imposing |
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| 9 | 9 | | a tax. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subtitle E, Title 3, Insurance Code, is amended |
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| 12 | 12 | | by adding Chapter 282 to read as follows: |
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| 13 | 13 | | CHAPTER 282. TITLE INSURANCE TAX FOR HOUSING PROGRAMS AND SERVICES |
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| 14 | 14 | | Sec. 282.0001. TAX IMPOSED; RATE. (a) A tax is imposed on |
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| 15 | 15 | | the issuance of each title insurance policy that is written for |
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| 16 | 16 | | delivery in this state by a title insurance company authorized to |
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| 17 | 17 | | engage in business in this state and for which the full basic |
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| 18 | 18 | | premium is charged. |
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| 19 | 19 | | (b) The rate of the tax is $1 on each policy described by |
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| 20 | 20 | | Subsection (a). |
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| 21 | 21 | | (c) The tax imposed by this section is in addition to other |
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| 22 | 22 | | taxes, fees, and assessments imposed on a title insurance company. |
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| 23 | 23 | | Sec. 282.0002. COLLECTION OF TAX. The comptroller shall |
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| 24 | 24 | | collect the tax. |
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| 25 | 25 | | Sec. 282.0003. TAX DUE DATES. (a) A title insurance |
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| 26 | 26 | | company shall pay the tax on an annual, semiannual, or more frequent |
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| 27 | 27 | | periodic basis, as determined by the comptroller. |
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| 28 | 28 | | (b) The comptroller may require semiannual or more frequent |
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| 29 | 29 | | periodic payments only from a title insurance company whose tax |
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| 30 | 30 | | liability under this chapter for the preceding year was at least |
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| 31 | 31 | | $2,000. |
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| 32 | 32 | | Sec. 282.0004. DEPOSIT AND USE OF TAX REVENUE. (a) The |
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| 33 | 33 | | comptroller shall deposit taxes collected under this chapter as |
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| 34 | 34 | | follows: |
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| 35 | 35 | | (1) one-fourth to the credit of the foundation school |
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| 36 | 36 | | fund; and |
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| 37 | 37 | | (2) the remainder to the credit of the general revenue |
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| 38 | 38 | | fund. |
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| 39 | 39 | | (b) Money deposited under Subsection (a)(2) may be |
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| 40 | 40 | | appropriated only for programs and services designed to reduce |
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| 41 | 41 | | homelessness and housing insecurity. |
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| 42 | 42 | | Sec. 282.0005. RULES. The comptroller may adopt reasonable |
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| 43 | 43 | | rules to implement this chapter, including rules providing for the |
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| 44 | 44 | | form and manner of remittance of the taxes imposed by this chapter. |
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| 45 | 45 | | SECTION 2. Not later than December 1, 2019, the comptroller |
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| 46 | 46 | | of public accounts shall adopt rules necessary for the |
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| 47 | 47 | | implementation and administration of Chapter 282, Insurance Code, |
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| 48 | 48 | | as added by this Act. |
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| 49 | 49 | | SECTION 3. Chapter 282, Insurance Code, as added by this |
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| 50 | 50 | | Act, applies to a title insurance policy written on or after January |
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| 51 | 51 | | 1, 2020. A title insurance policy written before January 1, 2020, |
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| 52 | 52 | | is governed by the law in effect when the title insurance policy was |
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| 53 | 53 | | written, and that law is continued in effect for that purpose. |
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| 54 | 54 | | SECTION 4. This Act takes effect September 1, 2019. |
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