INSURANCE CODE
CHAPTER 222. LIFE, HEALTH, AND ACCIDENT INSURANCE PREMIUM TAX
§ 222.001. APPLICABILITY OF CHAPTER. (a) This chapter
applies to:
(1) an insurer that receives gross premiums subject to
taxation under Section 222.002, including:
(A) a life, health, or accident insurance company
operating under Chapter 841 or 982;
(B) a group hospital service corporation
operating under Chapter 842;
(C) a general casualty company operating under
Chapter 861;
(D) a statewide mutual assessment company
operating under Chapter 881;
(E) a mutual life insurance company operating
under Chapter 882;
(F) a mutual insurance company operating under
Chapter 883;
(G) a stipulated premium company operating under
Chapter 884;
(H) a Lloyd's plan operating under Chapter 941;
(I) a reciprocal or interinsurance exchange
operating under Chapter 942; and
(J) a Mexican casualty insurance company
operating under Chapter 984; and
(2) a health maintenance organization operating under
Chapter 843 that receives gross revenues subject to taxation under
Section 222.002.
(b) This chapter does not apply to:
(1) a fraternal benefit society, including a fraternal
benefit society operating under Chapter 885;
(2) a local mutual aid association operating under
Chapter 886; or
(3) a society that limits its membership to one
occupation.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 222.002. TAX IMPOSED. (a) An annual tax is imposed
on:
(1) each insurer that receives gross premiums subject
to taxation under this section; and
(2) each health maintenance organization that
receives gross revenues from the sale of health maintenance
certificates or contracts.
(b) Except as otherwise provided by this section, in
determining an insurer's taxable gross premiums or a health
maintenance organization's taxable gross revenues, the insurer or
health maintenance organization shall include the total gross
amounts of premiums, membership fees, assessments, dues, revenues,
and other considerations received by the insurer or health
maintenance organization in a calendar year from any kind of health
maintenance organization certificate or contract or insurance
policy or contract covering a person located in this state and
arising from the business of a health maintenance organization or
the business of life insurance, accident insurance, health
insurance, life and accident insurance, life and health insurance,
health and accident insurance, life, health, and accident
insurance, including variable life insurance, credit life
insurance, and credit accident and health insurance for profit or
otherwise or for mutual benefit or protection.
(c) The following are not included in determining an
insurer's taxable gross premiums or a health maintenance
organization's taxable gross revenues:
(1) returned premiums or revenues;
(2) dividends applied to purchase paid-up additions to
insurance or to shorten the endowment or premium payment period;
(3) premiums received from an insurer for reinsurance;
(4) premiums or revenues received from the treasury of
this state or the United States for insurance or benefits
contracted for by this state or the federal government:
(A) in accordance with or in furtherance of Title
2, Human Resources Code, or the Social Security Act (42 U.S.C.
Section 301 et seq.); or
(B) to provide welfare benefits to designated
welfare recipients;
(5) premiums or revenues paid on group health,
accident, and life 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) a municipality, county, or hospital district
in this state; or
(B) a county or municipal hospital, without
regard to whether the employees are employees of the county or
municipality or of an entity operating the hospital on behalf of the
county or municipality; or
(6) premiums or revenues excluded by another law of
this state.
(d) For purposes of Subsection (c)(3), a stop-loss or excess
loss insurance policy issued to a health maintenance organization
is considered reinsurance. In determining an insurer's taxable
gross premiums or a health maintenance organization's taxable gross
revenues, an insurer or health maintenance organization is not
entitled to a deduction for premiums paid for reinsurance.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 222.003. TAX RATES. (a) Except as provided by
Subsection (b), the rate of the tax imposed by this chapter on an
insurer is 1.75 percent of the insurer's taxable gross premiums
received during a calendar year.
(b) The rate of the tax imposed by this chapter on an insurer
that receives taxable gross premiums from the business of life
insurance is:
(1) 0.875 percent of the first $450,000 of taxable
gross premiums received during a calendar year from the business of
life insurance; and
(2) 1.75 percent of the remaining taxable gross
premiums received during that calendar year from the business of
life insurance.
(c) The rate of the tax imposed by this chapter on a health
maintenance organization is:
(1) 0.875 percent of the first $450,000 of taxable
gross revenues received during a calendar year for the issuance of
health maintenance certificates or contracts; and
(2) 1.75 percent of the remaining taxable gross
revenues received during that calendar year for the issuance of
health maintenance certificates or contracts.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 222.004. TAX DUE DATES. (a) The total tax imposed by
this chapter is due and payable not later than:
(1) March 1 after the end of the calendar year for
which the tax is due;
(2) the date the annual statement for the insurer or
health maintenance organization is required to be filed with the
commissioner after the end of the calendar year for which the tax is
due; or
(3) another date prescribed by the comptroller.
(b) An insurer or health maintenance organization 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 or health maintenance organization paid
under this chapter for the previous calendar year. If the insurer
or health maintenance organization 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
taxable gross premiums or taxable gross revenues 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.
§ 222.005. TAX REPORT. (a) An insurer or health
maintenance organization 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 222.004(a).
(c) The comptroller may require the insurer or health
maintenance organization to file any additional relevant
information that is reasonably necessary to verify the amount of
tax due.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 222.006. 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 222.004.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 222.007. CREDIT FOR FEES PAID. (a) Except as
provided by Section 803.007, an insurer or health maintenance
organization is entitled to a credit on the amount of tax due under
this chapter for all examination and valuation 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.
§ 222.008. FAILURE TO PAY TAXES. An insurer or health
maintenance organization 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.
