INSURANCE CODE
CHAPTER 223. TITLE INSURANCE PREMIUM TAX
§ 223.001. APPLICABILITY OF CERTAIN DEFINITIONS. In
this chapter, a term defined by Chapter 2501 has the meaning
assigned by that chapter.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 223.002. APPLICABILITY OF CHAPTER. This chapter
applies to a title insurance company that receives premiums subject
to taxation under Section 223.003.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 223.003. TAX IMPOSED. (a) An annual tax is imposed
on each title insurance company that receives premiums from the
business of title insurance. The rate of the tax is 1.35 percent of
the title insurance company's taxable premiums for a calendar year,
including any premiums retained by a title insurance agent as
provided by Section 223.005. For purposes of this chapter, a person
engages in the business of title insurance if the person engages in
an activity described by Section 2501.005.
(b) Except as provided by Subsection (c), in determining a
title insurance company's taxable premiums, the company shall
include the total amounts of premiums received in a calendar year
from title insurance written on property located in this state.
(c) The following premiums are not included in determining a
title insurance company's taxable premiums:
(1) premiums received from other title insurance
companies for reinsurance; and
(2) returned premiums and dividends paid to
policyholders.
(d) In determining a title insurance company's taxable
premiums, a title insurance company is not entitled to a deduction
for premiums paid for reinsurance.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 223.004. LIMITATION ON CERTAIN ADDITIONAL
TAXES. (a) Except as otherwise provided by this code or the Labor
Code, a title insurance company or title insurance agent subject to
the tax imposed by this chapter may not be required to pay any
additional tax imposed by this state or a county or municipality in
proportion to the company's or agent's gross premium receipts.
(b) This section does not:
(1) limit the applicability of other taxes, fees, and
assessments imposed by this code; or
(2) prohibit the imposition and collection of state,
county, and municipal taxes on the property of title insurance
companies or title insurance agents or state, county, and municipal
taxes imposed by other laws of this state, unless a specific
exemption for title insurance companies or title insurance agents
is provided in those laws.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 223.005. PREMIUMS PAID TO TITLE INSURANCE
AGENT. (a) Premiums received from the business of title
insurance are subject to the tax under this chapter regardless of
whether paid to a title insurance company or retained by a title
insurance agent, with the tax being in lieu of the tax on the
premiums retained by a title insurance agent.
(b) The state facilitates the collection of the premium tax
on the premiums retained by a title insurance agent by establishing
the division of the premiums between the title insurance company
and title insurance agent so that the company receives the premium
tax due on the agent's portion of the premiums and remits it to the
state.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 223.006. 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; or
(2) another date prescribed by the comptroller.
(b) A title insurance company 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 company paid under this chapter for the previous calendar year.
If the company 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.
§ 223.007. TAX REPORTS. (a) A title insurance company
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 223.006(a).
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 223.008. RULES. (a) The commissioner or the
comptroller, as appropriate, may adopt fair and reasonable rules,
minimum standards, and limitations as appropriate to augment and
implement this chapter.
(b) This section does not affect the comptroller's general
authority to adopt rules to promote the efficient administration,
collection, enforcement, and reporting of taxes under this code or
another insurance law of this state.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 223.009. CREDIT FOR FEES PAID. (a) Except as
provided by Section 803.007, a title insurance company 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 the 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.
§ 223.010. FAILURE TO PAY TAXES. A title insurance
company 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.
§ 223.011. DISPOSITION OF REVENUE. Chapter 227 applies
to the disposition of the revenue from the tax imposed by this
chapter.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
