| 1 | 1 | | 88S30832 CJD-D |
|---|
| 2 | 2 | | By: Thompson of Brazoria H.B. No. 202 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to an exemption for policies issued to school districts |
|---|
| 8 | 8 | | and open-enrollment charter schools from certain insurance premium |
|---|
| 9 | 9 | | taxes. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Chapter 203, Insurance Code, is amended by |
|---|
| 12 | 12 | | adding Section 203.003 to read as follows: |
|---|
| 13 | 13 | | Sec. 203.003. EXEMPTION FROM CERTAIN PREMIUM TAXES FOR |
|---|
| 14 | 14 | | PUBLIC SCHOOL POLICIES. (a) Notwithstanding any other law, an |
|---|
| 15 | 15 | | insurer is not liable for premium taxes imposed under Chapters 221, |
|---|
| 16 | 16 | | 222, 224, 225, and 226 on a policy issued to a school district or |
|---|
| 17 | 17 | | open-enrollment charter school. |
|---|
| 18 | 18 | | (b) To qualify for an exemption under this section, the |
|---|
| 19 | 19 | | insurer must keep on file a form, signed and dated by an authorized |
|---|
| 20 | 20 | | representative of the school district or open-enrollment charter |
|---|
| 21 | 21 | | school, affirming that the policy is for a school district or |
|---|
| 22 | 22 | | open-enrollment charter school that is eligible to receive funding |
|---|
| 23 | 23 | | from the Foundation School Program under Chapter 48, Education |
|---|
| 24 | 24 | | Code. |
|---|
| 25 | 25 | | (c) The comptroller and the commissioner may adopt rules |
|---|
| 26 | 26 | | necessary to implement this section. |
|---|
| 27 | 27 | | SECTION 2. Section 281.005, Insurance Code, is amended to |
|---|
| 28 | 28 | | read as follows: |
|---|
| 29 | 29 | | Sec. 281.005. EXCLUSION OF CERTAIN TAXES OR CHARGES. (a) |
|---|
| 30 | 30 | | In determining an insurer's taxes or other charges under this |
|---|
| 31 | 31 | | subchapter, the comptroller may not consider: |
|---|
| 32 | 32 | | (1) an ad valorem tax on property; |
|---|
| 33 | 33 | | (2) a personal income tax; |
|---|
| 34 | 34 | | (3) a sales tax; |
|---|
| 35 | 35 | | (4) a surcharge that an insurer may recover directly |
|---|
| 36 | 36 | | from policyholders; or |
|---|
| 37 | 37 | | (5) an assessment for a special purpose, such as an |
|---|
| 38 | 38 | | assessment for a guaranty association, high risk health pool, joint |
|---|
| 39 | 39 | | underwriting association, or windstorm association, under the law |
|---|
| 40 | 40 | | of this or another state. |
|---|
| 41 | 41 | | (b) Notwithstanding Section 203.003, in determining an |
|---|
| 42 | 42 | | insurer's taxes or other charges under this subchapter, the |
|---|
| 43 | 43 | | comptroller shall consider the insurer to be liable for premium |
|---|
| 44 | 44 | | taxes for which an exemption is provided under that section as if |
|---|
| 45 | 45 | | that section did not exist. |
|---|
| 46 | 46 | | SECTION 3. The changes in law made by this Act apply only to |
|---|
| 47 | 47 | | tax liability for a tax year that begins on or after the effective |
|---|
| 48 | 48 | | date of this Act. |
|---|
| 49 | 49 | | SECTION 4. This Act takes effect on the 91st day after the |
|---|
| 50 | 50 | | last day of the legislative session. |
|---|