| 1 | 1 | | 87R6085 BEF-D |
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| 2 | 2 | | By: Nichols S.B. No. 775 |
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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 the applicability of the sales and use tax to medical |
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| 8 | 8 | | billing services. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 151.0039(b), Tax Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (b) "Insurance service" does not include: |
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| 13 | 13 | | (1) insurance coverage for which a premium is paid or |
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| 14 | 14 | | commissions paid to insurance agents for the sale of insurance or |
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| 15 | 15 | | annuities; |
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| 16 | 16 | | (2) a service performed on behalf of an insured by a |
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| 17 | 17 | | person licensed under Chapter 4102, Insurance Code; |
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| 18 | 18 | | (3) a service performed by a certified public |
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| 19 | 19 | | accountancy firm, if less than one percent of the firm's total |
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| 20 | 20 | | revenue in the prior calendar year is from services in this state |
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| 21 | 21 | | that would otherwise constitute insurance service under Subsection |
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| 22 | 22 | | (a); [or] |
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| 23 | 23 | | (4) a service performed on behalf of a certified |
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| 24 | 24 | | public accountancy firm by an owner of the firm or a member of the |
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| 25 | 25 | | firm's affiliated group, if less than one percent of the owner's or |
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| 26 | 26 | | member's total revenue in the prior calendar year is from services |
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| 27 | 27 | | in this state that would otherwise constitute insurance service |
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| 28 | 28 | | under Subsection (a); or |
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| 29 | 29 | | (5) a medical billing service. |
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| 30 | 30 | | SECTION 2. Section 151.0039(c), Tax Code, is amended by |
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| 31 | 31 | | adding Subdivision (3) to read as follows: |
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| 32 | 32 | | (3) "Medical billing service" means assigning codes |
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| 33 | 33 | | for the preparation of a medical claim, verifying medical insurance |
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| 34 | 34 | | eligibility, preparing a medical claim form for filing, and filing |
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| 35 | 35 | | a medical claim. |
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| 36 | 36 | | SECTION 3. The change in law made by this Act does not |
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| 37 | 37 | | affect tax liability accruing before the effective date of this |
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| 38 | 38 | | Act. That liability continues in effect as if this Act had not been |
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| 39 | 39 | | enacted, and the former law is continued in effect for the |
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| 40 | 40 | | collection of taxes due and for civil and criminal enforcement of |
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| 41 | 41 | | the liability for those taxes. |
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| 42 | 42 | | SECTION 4. This Act takes effect September 1, 2021. |
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