Source: http://texas-opinions.com/08-First-American-Title-Ins-Co-v-Combs-Comptroller-Tex-2008-Dissent-by-Hecht-taxation-of-out-of-state-insurance-companies.html
Timestamp: 2019-04-23 07:59:48+00:00

Document:
Justice Paul W. Green, and Justice Phil Johnson joined.
Dissent by Justice Hecht in First American Title Company v. Combs (Tex.
Justice Hecht, joined by Justice Wainwright, Justice Brister, and Justice Medina, dissenting.
every other state and 15% in Texas.
out-of-state title insurer’s tax burden merely because the insurer is out-of-state.
tax, the Comptroller has reduced Texas’ gross premiums tax rate by 85%, from 1.35% to 0.2025%.
now operates to discourage foreign insurers from doing business in Texas.
1987 and derived from prior premium tax statutes, the first one dating to 1893.
“considerably less deference” unless the agency provides some reasonable explanation for the change.
unreasonable. The statute clearly requires the Comptroller to make apples-to-apples comparisons.
different manner and for a different purpose than the other state in imposing and collecting its tax.
unapologetic discrimination against out-of-state insurers and parochial protectionism.
from that state must, in the Comptroller’s view, pay a retaliatory tax.
insurers doing business in Texas is as equal as 15 is to 100.
by the Fourteenth Amendment. Accordingly, I respectfully dissent.
 Tex. Ins. Code §§ 221.001-228.007.
 Prudential Ins. Co. of Am. v. Comm’r of Rev., 709 N.E.2d 1096, 1098, 1099 n.7 (Mass. 1999).
foreign insurer’s state of organization). This case involves only taxes.
 Western & S. Life Ins. Co. v. State Bd. of Equalization, 451 U.S. 648, 668 (1981).
U.S. 822 (1946) (per curiam)).
 Id. at 668 (internal punctuation omitted).
similar corporations of this State and the agents thereof.”) (amending former Tex. Rev. Civ. Stat. art.
442, 445, and by Act of May 23, 1951, 52d Leg., R.S., ch. 491, § 4, 1951 Tex. Gen. Laws 868, 1093.
then Tex. Rev. Civ. Stat. art. 4758 (1925).
for division of premiums with the agent as shall be set by the commissioner . . . .”).
insurance premium, and (2) title insurance agents shall receive 85% of each title insurance premium . . .
.”), adopted 28 Tex. Admin. Code § 9.1, available at http://www.tdi.state.tx.us/title/titlem4d.html#P-23.
imposes on the foreign insurer.”).
 Act of May 22, 2003, 78th Leg., R.S., ch. 1274, § 1, 2003 Tex. Gen. Laws 3611, 3638-3641, 4138.
requirements or other obligations, prohibitions or restrictions . . . .”), formerly Tex. Ins. Code art. 21.46.
including any premiums retained by a title insurance agent”.).
portion of the premiums and remits it to the state.”).
tax statutes have been frequently amended, and codified over the years as Tex. Rev. Civ. Stat. art.
1784. Article 4.10 was, in turn, amended by Act of May 30,1983, 68th Leg., R.S., ch. 283, 1983 Tex.
716. Eventually, in 1987, separate provisions for title insurance were enacted and codified at art. 9.59.
Act of June 1, 1987, 70th Leg., R.S., ch. 1073, §§ 22, 23, 1987 Tex. Gen. Laws 3610, 3638-3641.
through 226 of the Insurance Code. Act of May 22, 2003, 78th Leg., R.S., ch. 1274, § 1, 2003 Tex. Gen.
the insurer fails to remit the tax due on the agent’s portion.”).
does not contradict the plain language of the statute.”).
ample latitude to adapt its rulings or policies to changing circumstances).
of El Paso v. El Paso Elec. Co., 851 S.W.2d 896, 900 (Tex. App.–Austin 1993, writ denied).
reasonable and does not contradict the statute's plain language.”) (citations omitted).

References: v. 
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 art.
442
 § 4
 art. 4758
 § 9
 § 1
 art. 21
 art.
1784
 art. 9
 § 1
 v.