09 LC 37
0850
House
Bill 410
By:
Representative Knox of the
24th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 33 of the Official Code of Georgia Annotated, relating to insurance,
so as to provide an exemption from insurance premium taxes for certain insurance
products; to make certain technical corrections with regard to certain
exemptions from insurance premium taxes for certain insurance products; to amend
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
income taxes, so as to make certain technical corrections regarding certain
income tax deductions and income tax credits; to provide for related matters; to
provide for an effective date; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
33 of the Official Code of Georgia Annotated, relating to insurance, is amended
by revising subsection (c) of Code Section 33-8-4, relating to amount and method
of computing tax on insurance premiums generally, as follows:
"(c)
Insurers shall be exempt from otherwise applicable state premium taxes as
provided for in subsection (a) of this Code section on premiums paid by Georgia
residents for high deductible health plans sold or maintained
in
connection with a health savings account
under the applicable provisions of Section 223 of the Internal Revenue
Code."
SECTION
2.
Said
title is further amended by adding a new subsection (a.1) in Code Section
33-8-8.1, relating to county and municipal corporation taxes on life insurance
companies, to read as follows:
"(a.1)
For all taxable years beginning on or after January 1, 2010, insurers shall be
exempt from otherwise applicable local premium taxes as provided for in
subsection (b) of this Code section on premiums paid by Georgia residents for
high deductible health plans sold or maintained under the applicable provisions
of Section 223 of the Internal Revenue
Code."
SECTION
3.
Said
title is further amended by revising subsection (a.1) of Code Section 33-8-8.2,
relating to amount and method of computing local insurance premium taxes on
insurance companies other than life insurance companies, as
follows:
"(a.1)
Insurers shall be exempt from otherwise applicable local premium taxes as
provided for in subsection (a) of this Code section on premiums paid by Georgia
residents for high deductible health plans sold or maintained
in
connection with a health savings account
under the applicable provisions of Section 223 of the Internal Revenue
Code."
SECTION
4.
Chapter
7 of Title 48 of the Official Code of Georgia Annotated, relating to income
taxes, is amended by revising paragraph (13.1) of subsection (a) of Code Section
48-7-27, relating to computation of taxable net income, as follows:
"(13.1)
An amount equal to 100 percent of the premium paid by the taxpayer during the
taxable year for high deductible health plans established
and used
with a health savings account under the
applicable provisions of Section 223 of the Internal Revenue Code to the extent
the deduction has not been included in federal adjusted gross income, as defined
under the Internal Revenue Code of 1986, and the expenses have not been provided
from a health reimbursement arrangement and have not been included in itemized
nonbusiness deductions;".
SECTION
5.
Said
chapter is further amended by revising paragraphs (1) and (3) of subsection (a)
of Code Section 48-7-29.13, relating to tax credit for qualified health
insurance expenses, as follows:
"(1)
'Qualified health insurance' means a high deductible health plan that includes,
at a minimum, catastrophic health care coverage which is established
and used
with a health savings account under the
applicable provisions of Section 223 of the Internal Revenue
Code."
"(3)
'Taxpayer' means an employer who employs directly, or who pays compensation to
individuals whose compensation is reported on Form 1099, 50 or fewer persons and
for whom the taxpayer provides high deductible health plans that include, at a
minimum, catastrophic health care coverage which are established
and used
with a health savings account under the
applicable provisions of Section 223 of the Internal Revenue Code and in which
such employees are enrolled."
SECTION
6.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.