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) Except as
provided by Section 803.007, an insurer is entitled to a credit on
the amount of tax due under this chapter for all examination and
evaluation fees paid to or for the use of this state during the
calendar year for which the tax is due.
(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.
§ 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.
