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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption for policies issued to school districts |
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and open-enrollment charter schools from certain insurance premium |
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taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 203, Insurance Code, is amended by |
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adding Section 203.003 to read as follows: |
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Sec. 203.003. EXEMPTION FROM CERTAIN PREMIUM TAXES FOR |
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PUBLIC SCHOOL POLICIES. (a) Notwithstanding any other law, an |
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insurer is not liable for premium taxes imposed under Chapters 221, |
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222, 224, 225, and 226 on a policy issued to a school district or |
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open-enrollment charter school. |
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(b) To qualify for an exemption under this section, the |
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insurer must keep on file a form, signed and dated by an authorized |
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representative of the school district or open-enrollment charter |
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school, affirming that the policy is for a school district or |
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open-enrollment charter school that is eligible to receive funding |
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from the Foundation School Program under Chapter 48, Education |
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Code. |
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(c) The comptroller and the commissioner may adopt rules |
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necessary to implement this section. |
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SECTION 2. Section 281.005, Insurance Code, is amended to |
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read as follows: |
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Sec. 281.005. EXCLUSION OF CERTAIN TAXES OR CHARGES. (a) |
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In determining an insurer's taxes or other charges under this |
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subchapter, the comptroller may not consider: |
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(1) an ad valorem tax on property; |
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(2) a personal income tax; |
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(3) a sales tax; |
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(4) a surcharge that an insurer may recover directly |
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from policyholders; or |
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(5) an assessment for a special purpose, such as an |
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assessment for a guaranty association, high risk health pool, joint |
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underwriting association, or windstorm association, under the law |
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of this or another state. |
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(b) Notwithstanding Section 203.003, in determining an |
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insurer's taxes or other charges under this subchapter, the |
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comptroller shall consider the insurer to be liable for premium |
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taxes for which an exemption is provided under that section as if |
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that section did not exist. |
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SECTION 3. The changes in law made by this Act apply only to |
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tax liability for a tax year that begins on or after the effective |
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date of this Act. |
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SECTION 4. This Act takes effect on the 91st day after the |
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last day of the legislative session. |