CHAPTER 221. PROPERTY AND CASUALTY INSURANCE PREMIUM TAX
INSURANCE CODE
TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES
SUBTITLE B. INSURANCE PREMIUM TAXES
CHAPTER 221. PROPERTY AND CASUALTY INSURANCE PREMIUM TAX
Sec. 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, Sec. 1, eff. April 1,
2005.
Sec. 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, membership fees, assessments,
dues, revenues, and any other considerations for insurance
written by the insurer in a calendar year from any kind of
insurance written by the insurer on each kind of property or risk
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;
(13) crop insurance written by a farm mutual insurance company;
and
(14) home warranty insurance.
(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, Sec. 1, eff. April 1,
2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
932, Sec. 1, eff. June 15, 2007.
Sec. 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, Sec. 1, eff. April 1,
2005.
Sec. 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, Sec. 1, eff. April 1,
2005.
Sec. 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, Sec. 1, eff. April 1,
2005.
Sec. 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, Sec. 1, eff. April 1,
2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 11.001(a), eff. September 1, 2005.
Sec. 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, Sec. 1, eff. April 1,
2005.