Texas Insurance Code - Section 226.003. Tax Imposed; Rate
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§ 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.
(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, § 1, eff. April 1, 2005.
Amended by Acts 2005, 79th Leg., ch. 728, § 11.005(c), eff. Sept.
1, 2005.
Section: 225.009 225.010 225.011 225.012 225.013 226.001 226.002 226.003 226.004 226.005 226.051 226.052 226.053 226.054 226.055
Last modified: August 11, 2007
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