2005 Texas Insurance Code CHAPTER 221. PROPERTY AND CASUALTY INSURANCE PREMIUM TAX

INSURANCE CODE

SUBTITLE B. INSURANCE PREMIUM TAXES

CHAPTER 221. PROPERTY AND CASUALTY INSURANCE PREMIUM TAX


	§ 221.001. APPLICABILITY OF CHAPTER.  (a) This chapter 
applies to an insurer, organization, or concern that receives gross 
premiums subject to taxation under Section 221.002, including a 
reciprocal or interinsurance exchange that elects to be subject to 
taxation under this chapter in accordance with Section 224.003 and 
a Lloyd's plan.
	(b)  This chapter does not apply to:                                           
		(1)  a fraternal benefit society, including a fraternal 
benefit society operating under Chapter 885;
		(2)  a group hospital service corporation operating 
under Chapter 842;      
		(3)  a stipulated premium company operating under 
Chapter 884;              
		(4)  a mutual assessment association, company, or 
corporation regulated under Chapter 887;  or
		(5)  a purely cooperative or mutual fire insurance 
company carried on by its members solely for the protection of their 
own property and not for profit, except as provided by Section 
221.002(b)(13).

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 221.002. TAX IMPOSED;  RATE.  (a) An annual tax is 
imposed on each insurer that receives gross premiums subject to 
taxation under this section.  The rate of the tax is 1.6 percent of 
the insurer's taxable premium receipts for a calendar year.
	(b)  Except as provided by Subsection (c), in determining an 
insurer's taxable premium receipts, the insurer shall include the 
total gross amounts of premiums written by the insurer in a calendar 
year from any kind of insurance written on property or risks located 
in this state, including:
		(1)  fire insurance;                                                          
		(2)  ocean marine insurance;                                                  
		(3)  inland marine insurance;                                                 
		(4)  accident insurance;                                                      
		(5)  credit insurance;                                                        
		(6)  livestock insurance;                                                     
		(7)  fidelity insurance;                                                      
		(8)  guaranty insurance;                                                      
		(9)  surety insurance;                                                        
		(10)  casualty insurance;                                                     
		(11)  workers' compensation insurance;                                        
		(12)  employers' liability insurance;  and                                    
		(13)  crop insurance written by a farm mutual insurance 
company.            
	(c)  The following premium receipts are not included in 
determining an insurer's taxable premium receipts:
		(1)  premium receipts received from the business of 
title insurance;        
		(2)  premium receipts received from the business of 
life insurance, personal accident insurance, life and accident 
insurance, or health and accident insurance for profit, written by 
a life insurance company, life and accident insurance company, 
health and accident insurance company, or for mutual benefit or 
protection in this state;
		(3)  premium receipts received from another authorized 
insurer for reinsurance;
		(4)  returned premiums and dividends paid to 
policyholders;  and            
		(5)  premiums excluded by another law of this state.                          
	(d)  In determining an insurer's taxable premium receipts, 
an insurer is not entitled to a deduction for premiums paid for 
reinsurance.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 221.003. TAX DUE DATES.  (a) The total tax imposed by 
this chapter is due and payable not later than March 1 after the end 
of the calendar year for which the tax is due.
	(b)  An insurer that had a net tax liability for the previous 
calendar year of more than $1,000 shall make semiannual prepayments 
of tax on March 1 and August 1.  The tax paid on each date must be 
equal to 50 percent of the total amount of tax the insurer paid 
under this chapter for the previous calendar year.  If the insurer 
did not pay a tax under this chapter during the previous calendar 
year, the tax paid on each date must be equal to the tax that would 
be owed on the aggregate of the gross premiums for the two previous 
calendar quarters.
	(c)  The comptroller may refund any overpayment of taxes that 
results from the semiannual prepayment system prescribed by this 
section.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 221.004. TAX REPORT.  (a) An insurer liable for the tax 
imposed by this chapter must file annually with the comptroller a 
tax report on a form prescribed by the comptroller.
	(b)  The tax report is due on the date the tax is due under 
Section 221.003(a).

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 221.005. CHANGE IN DUE DATES.  (a) The comptroller by 
rule may change the dates for reporting and paying taxes under this 
chapter to improve operating efficiencies within the agency.
	(b)  A change by the comptroller in a reporting or payment 
date must retain the system of semiannual prepayments prescribed by 
Section 221.003.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 221.006. CREDIT FOR FEES PAID.  (a) An insurer is 
entitled to a credit on the amount of tax due under this chapter for 
all examination and evaluation fees paid to this state during the 
calendar year for which the tax is due.  The limitations provided by 
Sections 803.007(1) and (2)(B) for a domestic insurance company 
apply to a foreign insurance company.
	(b)  The credit provided by this section is in addition to 
any other credit authorized by statute.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.  
Amended by Acts 2005, 79th Leg., ch. 728, § 11.001(a), eff. Sept. 
1, 2005.


	§ 221.007. FAILURE TO PAY TAXES.  An insurer that fails to 
pay all taxes imposed by this chapter is subject to Section 203.002.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.