Texas Insurance Code - Section 225.004. Tax Imposed; Rate
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Texas Lawyer > Insurance Code > Texas Insurance Code - Section 225.004. Tax Imposed; Rate
§ 225.004. TAX IMPOSED; RATE. (a) A tax is imposed on
gross premiums for surplus lines insurance. The rate of the tax is
4.85 percent of the gross premiums.
(b) Taxable gross premiums under this section are based on
gross premiums written or received for surplus lines insurance
placed through an eligible surplus lines insurer during a calendar
year.
(c) If a surplus lines insurance 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 premium that may be subject to
taxation by 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.
(e) The following premiums are not taxable in this state:
(1) premiums properly allocated to another state that
are specifically exempt from taxation in that state; and
(2) premiums on risks or exposures that are properly
allocated to federal or international waters or are under the
jurisdiction of a foreign government.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
Section: 223.011 224.001 224.002 224.003 225.001 225.002 225.003 225.004 225.005 225.006 225.007 225.008 225.009 225.010 225.011
Last modified: August 11, 2007
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