2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 222 - Life, Health, and Accident Insurance Premium Tax › Section 222.002. Tax Imposed

Sec. 222.002.  TAX IMPOSED.  (a)  An annual tax is imposed on:
(1)  each insurer that receives gross premiums subject to taxation under this section;  and
(2)  each health maintenance organization that receives gross revenues from the sale of health maintenance certificates or contracts.
(b)  Except as otherwise provided by this section, in determining an insurer's taxable gross premiums or a health maintenance organization's taxable gross revenues, the insurer or health maintenance organization shall include the total gross amounts of premiums, membership fees, assessments, dues, revenues, and other considerations received by the insurer or health maintenance organization in a calendar year from any kind of health maintenance organization certificate or contract or insurance policy or contract covering risks on individuals or groups located in this state and arising from the business of a health maintenance organization or the business of life insurance, accident insurance, health insurance, life and accident insurance, life and health insurance, health and accident insurance, life, health, and accident insurance, including variable life insurance, credit life insurance, and credit accident and health insurance for profit or otherwise or for mutual benefit or protection.
(c)  The following are not included in determining an insurer's taxable gross premiums or a health maintenance organization's taxable gross revenues:
(1)  returned premiums or revenues;
(2)  dividends applied to purchase paid-up additions to insurance or to shorten the endowment or premium payment period;
(3)  premiums received from an insurer for reinsurance;
(4)  premiums or revenues received from the treasury of the United States for insurance or benefits contracted for by the federal government  in accordance with or in furtherance of Title XVIII of the Social Security Act (42 U.S.C. Section 1395c et seq.) and its subsequent amendments;
(5)  premiums or revenues paid on group health, accident, and life policies or contracts in which the group covered by the policy or contract consists of a single nonprofit trust established to provide coverage primarily for employees of:
(A)  a municipality, county, or hospital district in this state; or
(B)  a county or municipal hospital, without regard to whether the employees are employees of the county or municipality or of an entity operating the hospital on behalf of the county or municipality; or
(6)  premiums or revenues excluded by another law of this state.
(d)  For purposes of Subsection (c)(3), a stop-loss or excess loss insurance policy issued to a health maintenance organization is considered reinsurance.  In determining an insurer's taxable gross premiums or a health maintenance organization's taxable gross revenues, an insurer or health maintenance organization is not entitled to a deduction for premiums paid for reinsurance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.002(b), eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 2, eff. June 15, 2007.