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