HomeMy WebLinkAboutRes 2012-08 Soliciting Support from TML for Tax ExemptionCity of West University Place
Hams County, Texas
RESOLUTION NUMBER 2012 -08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
UNIVERSITY PLACE, TEXAS, SOLICITING SUPPORT FROM THE TEXAS
MUNICIPAL LEAGUE FOR LEGISLATIVE ACTION TO ALLOW ALL
MUNICIPALITIES, COUNTIES, AND HOSPITAL DISTRICTS IN THIS STATE
TO BE ELIGIBLE FOR AN EXEMPTION TO THE TAX ON GROUP HEALTH,
DENTAL, VISION, ACCIDENT, DISBILITY, AND LIFE INSURANCE PREMIUMS
FOR OFFICERS, EMPLOYEES, RETIREES, AND THEIR DEPENDENTS
WHEREAS, Chaptor222 of the Texas Insurance Code, requires insurance companies to
pay an annual premium tax on gross premiums subject to taxation under Chapter 222; and
WHEREAS, Section 222.002(c)(5) specifies that premiums or revenues paid on group
health, dental, vision, disability, accident, and Itle policies or contracts in which the group
covered by the policy or contract consists of a single nonprofit trust established to provide
coverage primarily for employees of a municipality, county, or hospital district in this state; and
WHEREAS, neither the Texas Insurance Code nor the Texas Trost Code defines a
single nonprofit trust or describes the activities thereof; and
WHEREAS, local governments which are exempt from the state sales W, franchise tax,
and motor vehicle tax should also be exempt from payment of the premium tax; and
WHEREAS, municipalities, counties, and hospital districts incur unnecessary costs and
administrative burdens for having to create a single nonprofit trust for the purpose of receiving
tax exemption to which they sh0uld already be entitled; and
WHEREAS, similar reference to a single nonprofit trust occurs in Section 257.003(b)(2)
and Section 25b.004(b)(2) of the Texas Insurance Code and Section 157.102(a) of the Texas
Local Government Code;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WEST
UNIVERSITY PLACE, TEXAS:
Section 1. That the facts and recitations set forth in the preamble of this resolution
are accurate and correct.
Section 2. That the City of West University Place, Texas, suppods legislative action
that would remove any requirement to create a single nonprofit trust to be eligible for an
exemption of the tax on group heath, dental, vision, disability, accitlent, and life insurance
premiums for its officers, employees, retirees, and their dependents.
Section 3. That the passage of this legislation would benefit all municipalities,
counties, and hospital districts throughout Me State of Texas.
PASSED, APPROVED, AND ADOPTED this 2e day of September , 2012.
(Seal)
�N1 YY /YEB
SIGNED:
r
ma enz, City Secretary usan Sample,// / M Pro Vm
RECOMMENDED BY:
Michael Ross, City Manager
APPROVED AS TO FORM:
Alen Petrov, City Atbmey