By: Perry S.B. No. 1083

(In the Senate - Filed February 24, 2017; March 7, 2017, read first time and referred to Committee on Finance; March 29, 2017, reported adversely, with favorable Committee Substitute by the following vote: Yeas 14, Nays 0; March 29, 2017, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 1083 By: Whitmire

A BILL TO BE ENTITLED

AN ACT

relating to the applicability of the sales and use tax to certain insurance 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; [or]

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

(3) a service performed by a certified public accountancy firm, as that term is defined by Section 901.002, Occupations Code, or on behalf of the firm by an owner, employee, or affiliate of the 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).

SECTION 2. 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 3. This Act takes effect January 1, 2018.

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