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.