Law:Title 3. Department Funds, Fees, And Taxes. Subtitle B. Insurance Premium Taxes from Chapter 224. Reciprocal And Interinsurance Exchange Premium Tax (Texas)

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Subtitle B. Insurance Premium Taxes

Contents

Chapter 224. Reciprocal And Interinsurance Exchange Premium Tax

Section  224.001.  Applicability Of Chapter.

This chapter applies to a reciprocal or interinsurance exchange that has a certificate of authority to engage in business in this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.



Section  224.002.  Tax Imposed; Rate.

(a) An annual tax is imposed on each reciprocal or interinsurance exchange that:

(1)  does not file an election to be subject to the tax imposed by Chapter 221 in accordance with Section 224.003; or

(2)  withdraws that election.

(b)  The rate of the tax is 1.7 percent of the reciprocal or interinsurance exchange's gross premium receipts.

(c)  A reciprocal or interinsurance exchange that is subject to the tax imposed by this chapter is not subject to the tax imposed by Chapter 221.

(d)  Except as provided by Subsection (b), Chapter 221 applies to the imposition, computation, and administration of the tax imposed by this chapter in the same manner that Chapter 221 applies to the tax imposed by that chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.



Section  224.003.  Taxation Election.

(a) A reciprocal or interinsurance exchange may elect to be subject to the tax imposed by Chapter 221.

(b)  A reciprocal or interinsurance exchange that elects to be subject to the tax imposed by Chapter 221 must file with the comptroller on a form prescribed by the comptroller a written statement that the exchange has elected to be subject to that tax. The exchange must file the form not later than the 31st day before the date on which the tax year for which the election is to be effective begins.

(c)  A reciprocal or interinsurance exchange that elects to be subject to the tax imposed by Chapter 221 continues to be subject to that tax for each tax year until the exchange withdraws the election under Subsection (d).

(d)  A reciprocal or interinsurance exchange may withdraw an election made under Subsection (b) by filing with the comptroller written notice of the withdrawal. The exchange must file the notice not later than the 31st day before the date on which the tax year for which the withdrawal is to be effective begins.

(e)  A reciprocal or interinsurance exchange that elects to be subject to the tax imposed by Chapter 221 is not subject to the tax imposed by Section 224.002.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.


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