INSURANCE CODE - NOT CODIFIED

CHAPTER 23. NON-PROFIT LEGAL SERVICES CORPORATIONS




Art. 23.08A. Maintenance Tax                                                  

(a) The State of Texas by and through the commissioner shall 
annually determine the rate of assessment of a maintenance tax to be 
paid by a nonprofit legal services corporation subject to Chapter 
961 of this code on an annual or semiannual basis.  The rate of 
assessment may not exceed one percent of the correctly reported 
gross revenues received by all corporations issuing prepaid legal 
services contracts in this state.  The comptroller shall collect 
the maintenance tax.

(b) The tax required by this article is in addition to all other 
taxes now imposed or that may be subsequently imposed and that are 
not in conflict with this article.

(c) The commissioner, after taking into account the unexpended 
funds produced by this tax, if any, shall adjust the rate of 
assessment each year to produce the amount of funds that it 
estimates will be necessary to pay all the expenses of regulating 
nonprofit legal services corporations during the succeeding year.  
In making an estimate under this subsection, the commissioner shall 
take into account the requirement that the general revenue fund be 
reimbursed under Article 4.19 of this code.

(d) The taxes collected shall be deposited in the State Treasury to 
the credit of the general revenue fund to be reallocated to the 
Texas Department of Insurance operating fund and shall be spent as 
authorized by legislative appropriation on warrants issued by the 
comptroller pursuant to duly certified requisitions of the 
commissioner.  Amounts reallocated to the Texas Department of 
Insurance operating fund under this subsection may be transferred 
to the general revenue fund in accordance with Article 4.19 of this 
code.

(e) Article 1.31A of this code applies to taxes collected under this 
article.

(f) The comptroller may elect to collect on a semiannual basis the 
tax assessed under this article only from insurers whose tax 
liability under this article for the previous tax year was $2,000 or 
more.  The comptroller may prescribe and adopt reasonable rules to 
implement such payments as it deems advisable, not inconsistent 
with this article.

(g) The commissioner shall advise the comptroller of the applicable 
rate of assessment no later than the date 45 days prior to the due 
date of the tax return for the period for which such taxes are due.  
If the commissioner has not advised the comptroller of the 
applicable rate by such date, the applicable rate shall be the rate 
applied in the previous tax period.  If the commissioner advises the 
comptroller of the applicable rate of assessment after taxes have 
been assessed pursuant to this subsection, the comptroller shall:

(1) advise each taxpayer in writing of the amount of any additional 
taxes due;  or

(2) refund any excess taxes paid.                                             

Added by Acts 1993, 73rd Leg., ch. 685, Sec. 3.23, eff. Sept. 1, 
1993.  Subsec. (a) amended by Acts 2001, 77th Leg., ch. 1419, Sec. 
16, eff. June 1, 2003.