79R2911 CBH-D

By:  Shapleigh                                                    S.B. No. 169



A BILL TO BE ENTITLED

AN ACT

relating to a refund of state sales and use taxes for certain 
companies that provide group health benefit plans to their 
employees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter I, Chapter 151, Tax Code, is amended 
by adding Section 151.433 to read as follows:
	Sec. 151.433.  TAX REFUNDS FOR SMALL BUSINESSES THAT PROVIDE  
GROUP HEALTH BENEFIT PLANS.  (a)  In this section:
		(1)  "Full-time employee" means an employee in a 
permanent position who is required to work at least 1,600 hours a 
year.
		(2)  "Group health benefit plan" has the meaning 
assigned by Section 171.751.
	(b)  This section applies only to a business that:                      
		(1)  has 100 or fewer employees;                                       
		(2)  begins to offer a group health benefit plan to 
full-time employees on or after September 1, 2005; and
		(3)  offers to pay at least 80 percent of the premiums 
or other charges assessed for employee-only coverage under the 
plan, regardless of whether an employee may voluntarily waive the 
coverage.
	(c)  A business described by Subsection (b) is entitled to a 
refund in the amount allowed by this section of the taxes imposed by 
this chapter in a calendar year.
	(d)  The amount of the refund a business may claim for a 
calendar year is equal to the lesser of:
		(1)  the amount of tax the business paid under this 
chapter during that calendar year; or
		(2)  an amount equal to $400 for each full-time 
employee.            
	(e)  A business must apply to the comptroller for a refund 
under this section before or during the calendar year after the year 
for which the business is entitled to a refund.
	SECTION 2.  This Act takes effect September 1, 2005.