87R6085 BEF-D

By: Nichols S.B. No. 775

A BILL TO BE ENTITLED

AN ACT

relating to the applicability of the sales and use tax to medical billing services.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 151.0039(b), Tax Code, is amended to read as follows:

(b) "Insurance service" does not include:

(1) insurance coverage for which a premium is paid or commissions paid to insurance agents for the sale of insurance or annuities;

(2) a service performed on behalf of an insured by a person licensed under Chapter 4102, Insurance Code;

(3) a service performed by a certified public accountancy firm, if less than one percent of the firm's total revenue in the prior calendar year is from services in this state that would otherwise constitute insurance service under Subsection (a); [or]

(4) a service performed on behalf of a certified public accountancy firm by an owner of the firm or a member of the firm's affiliated group, if less than one percent of the owner's or member's total revenue in the prior calendar year is from services in this state that would otherwise constitute insurance service under Subsection (a); or

(5) a medical billing service.

SECTION 2. Section 151.0039(c), Tax Code, is amended by adding Subdivision (3) to read as follows:

(3) "Medical billing service" means assigning codes for the preparation of a medical claim, verifying medical insurance eligibility, preparing a medical claim form for filing, and filing a medical claim.

SECTION 3. The change in law made by this Act does not affect tax liability accruing before the effective date of this Act. That liability continues in effect as if this Act had not been enacted, and the former law is continued in effect for the collection of taxes due and for civil and criminal enforcement of the liability for those taxes.

SECTION 4. This Act takes effect September 1, 2021.