Law:Title 3. Department Funds, Fees, And Taxes. Subtitle B. Insurance Premium Taxes from Chapter 226. Unauthorized And Independently Procured Insurance Premium Tax (Texas)

From Law Delta

Revision as of 21:26, 28 September 2011 by Admin (Talk | contribs)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

Subtitle B. Insurance Premium Taxes

Contents

Chapter 226. Unauthorized And Independently Procured Insurance Premium Tax

Subchapter A. Unauthorized Insurance Premium Tax

Section 226.001.  Definitions.

In this subchapter:

(1)  "Insurer" has the meaning assigned by Section 101.002 and includes:

(A)  an insurer that does not hold a certificate of authority in this state;

(B)  an eligible surplus lines insurer; and

(C)  an insurer that holds a certificate of authority in this state.

(2)  "Premium" includes any consideration for insurance, including:

(A)  a premium;

(B)  a membership fee;

(C)  an assessment; or

(D)  dues.

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

Amended by:

Acts 2005, 79th Leg., Ch. 728, Sec. 11.005(a), eff. September 1, 2005.



Section 226.002. 

 APPLICABILITY OF

Subchapter

. This subchapter applies to an insurer who charges gross premiums for insurance on a subject resident, located, or to be performed in this state.

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

Amended by:

Acts 2005, 79th Leg., Ch. 728, Sec. 11.005(b), eff. September 1, 2005.



Section  226.003.  Tax Imposed; Rate.

(a) A tax is imposed on each insurer that charges gross premiums subject to taxation under this section. The rate of the tax is 4.85 percent of the gross premiums charged by the insurer.

(b)  Except as otherwise provided by this section, in determining an insurer's taxable gross premiums, the insurer shall include any premium for insurance on a subject resident, located, or to be performed in this state.

(c)  If a policy covers risks or exposures only partially located in this state, the tax is computed on the portion of the premium that is properly allocated to a risk or exposure located in this state.

(d)  In determining the amount of taxable premiums under Subsection (c), a premium, other than a premium properly allocated or apportioned and reported as a taxable premium of another state, is considered to be written on property or risks located or resident in this state if the premium:

(1)  is written, procured, or received in this state; or

(2)  is for a policy negotiated in this state.

(d-1) Notwithstanding Subsections (b) through (d), the comptroller by rule may establish that all premiums are considered to be on risks located in this state:

(1)  if the insured's home office or state of domicile or residence is located in this state; or

(2)  to accommodate changes in federal statutes or regulations that would otherwise limit the comptroller's ability to directly collect the taxes due under this section.

(e)  Insurance on a subject resident, located, or to be performed in this state is considered to be insurance procured, continued, or renewed in this state regardless of the location from which:

(1)  the application is made;

(2)  the negotiations are conducted; or

(3)  the premiums are remitted.

(f)  Premiums on risks or exposures that are properly allocated to federal waters or international waters or are under the jurisdiction of a foreign government are not taxable by this state.

(g)  The following premiums are not subject to the tax imposed by this subchapter:

(1)  premiums on insurance procured by a licensed surplus lines agent from an eligible surplus lines insurer as defined by Chapter 981 on which premium tax is paid in accordance with Chapter 225;

(2)  premiums on an independently procured contract of insurance on which premium tax is paid in accordance with Subchapter B; and

(3)  premiums on a contract of insurance written by an insurer that holds a certificate of authority in this state and that is authorized to write the contract.

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

Amended by:

Acts 2005, 79th Leg., Ch. 728, Sec. 11.005(c), eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch. 932, Sec. 7, eff. June 15, 2007.



Section  226.004.  Tax Exclusive.

The tax imposed by this subchapter is in lieu of all other insurance taxes.

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



Section  226.005.  Tax Payment; Due Date.

(a) The tax imposed by this subchapter is due and payable not later than:

(1)  March 1 after the end of the calendar year in which the insurance was effectuated, continued, or renewed; or

(2)  another date prescribed by the comptroller.

(b)  An insurer shall pay the tax imposed by this subchapter using a form prescribed by the comptroller.

(c)  The tax imposed by this subchapter, if not paid when due, is a liability of the insurer, the insurer agent, and the insured.

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

Amended by:

Acts 2005, 79th Leg., Ch. 728, Sec. 11.005(d), eff. September 1, 2005.



Section 226.006.  Limitation On Rulemaking.

In adopting rules under this subchapter, the comptroller may not adopt a rule that exceeds the requirements of this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 932, Sec. 8, eff. June 15, 2007.



Subchapter B. Independently Procured Insurance Premium Tax

Section  226.051.  Definition.

In this subchapter, "premium" includes any consideration for insurance, including:

(1)  a premium;

(2)  a membership fee; or

(3)  dues.

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



Section  226.052. 

 APPLICABILITY OF

Subchapter

. This subchapter applies to an insured who procures an insurance contract in accordance with Section 101.053(b)(4).

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



Section  226.053.  Tax Imposed; Rate.

(a) A tax is imposed on each insured at the rate of 4.85 percent of the premium paid for the insurance contract procured in accordance with Section 101.053(b)(4).

(b)  If an insurance contract covers risks or exposures only partially located in this state, the tax is computed on the portion of the premium that is properly allocated to a risk or exposure located in this state.

(b-1) Notwithstanding Subsections (a) and (b), the comptroller by rule may establish that all premiums are considered to be on risks located in this state:

(1)  if an insured's home office or state of domicile or residence is located in this state; or

(2)  to accommodate changes in federal statutes or regulations that would otherwise limit the comptroller's ability to directly collect the taxes due under this section.

(c)  Premiums for individual life or individual disability insurance are not included in determining an insured's taxable premiums.

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. 9, eff. June 15, 2007.



Section  226.054.  Tax Payment By Certain Insureds.

(a) Except as provided by Section 226.055, the tax imposed by this subchapter is due and payable not later than:

(1)  May 15 after the end of the calendar year in which the insurance was procured, continued, or renewed; or

(2)  another date prescribed by the comptroller.

(b)  An insured who fails to withhold from the premium the amount of tax imposed by this subchapter is liable for the amount of the tax and shall pay the tax due.

(c)  The insured shall file a tax report and pay the tax.

(d)  The insured may designate another person to file the report and pay the tax.

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



Section  226.055.  Tax Payment By Certain Corporations.

The amount of tax due and payable under this subchapter by a corporation that files a franchise tax report shall be reported directly to the comptroller and is due:

(1)  at the time the franchise tax report is due; or

(2)  on another date prescribed by the comptroller.

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



Section  226.056.  Effect On Other Law. Section

s 226.051-226.054 do not abrogate or modify any other provision of this chapter or Chapter 101.

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



Section 226.057.  Limitation On Rulemaking.

In adopting rules under this subchapter, the comptroller may not adopt a rule that exceeds the requirements of this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch. 932, Sec. 10, eff. June 15, 2007.


Personal tools
Laws
Variants
Actions
Navigation
Toolbox