February 18, 1950

Hon. George B. Butler Chairman,Board of opinionno. v-1003. InsuranceCommissioners Austin, Texas Re: The legality of credlting examinationand valuation fees against premium taxes paid on Dear Sir: workmenls oompensatlon insurance. Your letter requestlngour opinion relative to the above captioned matter asks:

"WI.11 you please adviseme whether preq lures receivedby domestic Insurers on their workmen's oompensatloninsurancebuslnesa ati to be reported and paid under the provisions of the present Article 7064a, and if so, whether examinationand valuation fees paid by such insurers shall be allowed as a credit on the premium taxes in the manner set out in your opinion No. Q-967, dated December 14, 1949.” The answer to your questions 1s found in the ewording of Articles 7064 and 7064a, V.C.S.

_

Article 7064, Xf.C.9.(Acts 49th Leg., 1945, oh.341, Sec. 1, p.574) provides, in part:

"Fivery insurancecornoration. Lloyd's or reciprocals,and any other orRan1zatlon or conoern transactinnthe business of fire, marine. marine Inland, acoldent,credit. title,.livestock,

fidelity,guaranty, s&ety, casualty,workmeats compensation,employers llabll~tg,or any other kind or ployers llabll~tg, character of insurancebusiness, other than character insurancebusiness, the business of life Insurance. personal ac-Hon. George B. Butler, page 2 (v-1003)

report to the Board of InsuranceCommFssioners the gross amount of premix received upon property located in this State or on risks located in this State during the pre-: ceding year, and each of such Insurance carriers shall pay an annual tax upon such gross premium receipts of three and fivetenths per cent.
. . .'I (Emphasisours throughoutthis opinion unless otherwise indicated.) This Article then sets out variationsdepending on investments in Texas securities,and continuesthus:

II

. . . The taxes aforesaidshall constitute all taxes collectibleunder the laws of this State against any such Insurance carriers except maintenancetaxes specially levied under the laws of this State and assessedby the Board of InsuranceCommlssloners to support the various activities of the divisions of the Board of Insurance Commlssloners,

and except if any such carrier is writing personal accident or health and accident insurance other than workmen's compensation,it shall be taxed as otherwise providedby law on account of such business

. . . ?Phls Act shall be cumulativeof all other laws and shall repeal Article 479, Revised Civil Statutes of 19;i5, as amended, and a~11 other laws onlr in so far as they levs'- any tax on any of the organizations affected by this Act or otherwiseconflictwith this Act, except as provided above." It is our opinion that it was the intent of the Legislatureto subject all workmen's compensation insurancebusiness to the provisions of the above Act.

Artlole 7064a, entitled "Tax on domestic life, accidentand health Insurance organizations," Acts 51st Leg., R.S.1949, ch.620, p.1365, provides, in part:

"Everygroup of individuals,society, association,or corporation, (all of which shall be deemed included in the term 'Insurante brganlzatlon~ wherever used in this Act)Hon. George B. Butler, Page 3 (v-1003)

organized under the laws transactingthe business of this State and ---- - or 11x-e

insurance, ersonal aocident Insurance,life and acoient insurance. or health an d accident insurance for profit

. . . shall
. . . file its annual statement
. . . shall pay an annual tax of one per cent (1%) of the gross amount of premiums collectedduring such year from persons residing or domiciled In the State of Texas on aalicles of Insurance
. . . Dravlded

all taxes and license fees collectibleunder the laws of this State from any such insurante organleatlon, organizedunder the laws of this State, except, and only except unemployment oompensationtaxes
. . .; and In case of companieswritinu workmen's compensation Insurance,the taxes otherwiseProvided by law on account of such business

. . ." It is our opinion that Article 7064a does not tax workmen's compensation premiums and specificallyindicates that in case of lLfe, health and aocidentaompanics also writing workmen's compensationInsurance, -their latter business is to be taxed under another statute, i.e. Artlole 7064.

In reply to your first questionyou are advised that premitis receivedby domestio insurers on their workmen's compensationinsurancebusiness areto be reported and paid under the provisionsof Article 7064, V.C.S., and not under AxWcle 7o64a,V.C.S. Your second question, depending upon' an affirmativeanswer to your first question, thereforeneed not be answered. Article 7064 does not provide credit for examinationand valuation fees. See Opinion v-967. SUMMARY Premiums receivedby domestic Insurers on their workmen's oompensatlonInsuranceHon. George B. Butler, page 4 (Q-1003)

business are to be reported and pald under PrOViSlOnSof Article 7064, Q.C.S.
Yours very truly,
APPROQED: PRICE DANIEL AttorneyGeneral Ned McDaniel State AffairsDivision Charles D. Mathews ExecutiveAssistant B; "i"rF Q. F. Ta lor Assistant QFTrammmw