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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from the franchise tax for certain |
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insurance entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.052(a), Tax Code, is amended to read |
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as follows: |
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(a) Except as provided by Subsection (c), an insurance |
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organization, title insurance company, or title insurance agent |
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authorized to engage in insurance business in this state that is |
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[now] required to pay an annual tax [under Chapter 4 or 9, Insurance
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Code,] measured by its gross premium receipts is exempted from the |
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franchise tax. A nonadmitted insurance organization that is |
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required to pay a gross premium receipts tax during a tax year is |
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exempted from the franchise tax for that same tax year. A |
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nonadmitted insurance organization that is subject to an occupation |
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tax or any other tax that is imposed for the privilege of doing |
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business in another state or a foreign jurisdiction, including a |
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tax on gross premium receipts, is exempted from the franchise tax. |
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SECTION 2. This Act applies to a report originally due on or |
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after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2014. |