09 LC
37 0909S
House
Bill 410 (COMMITTEE SUBSTITUTE)
By:
Representative Knox of the
24th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Titles 33 and 48 of the Official Code of Georgia Annotated, relating,
respectively, to insurance and revenue and taxation, so as to change certain
provisions relating to amount and method of computing tax on insurance premiums
generally; to provide for an exemption from certain local insurance premium
taxes on premiums for certain high deductible health plans; to change certain
provisions relating to amount and method of computing certain local insurance
premium taxes; to change certain provisions regarding the income tax exclusion
for certain premiums for certain high deductible health plans; to change certain
provisions regarding the income tax credit for qualified health insurance
expenses; to provide for automatic repeal of certain provisions; to provide for
an effective date; to provide for applicability; 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
as defined
by Section 223 of the Internal Revenue
Code."
SECTION
2.
Said
title is further amended in Code Section 33-8-8.1, relating to county and
municipal corporation taxes on life insurance companies, by adding a new
subsection to read as follows:
"(a.1)
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 as defined by Section 223 of the
Internal Revenue Code. This subsection shall stand repealed in its entirety on
January 1, 2015."
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
as defined
by Section 223 of the Internal Revenue
Code."
SECTION
4.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
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
as defined
by 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
title 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
as defined
by
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
as defined
by Section 223 of the Internal Revenue
Code and in which such employees are enrolled."
SECTION
6.
(a)
This Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval and shall be applicable to all taxable years
beginning on or after January 1, 2009, except as provided in subsection (b) of
this section.
(b) Section 2 of this Act shall be applicable to all taxable years beginning on or after January 1, 2010.
(b) Section 2 of this Act shall be applicable to all taxable years beginning on or after January 1, 2010.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.