reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 223A - Captive Insurance Premium Tax › Section 223A.004. Tax Due Dates

Sec. 223A.004.  TAX DUE DATES.  (a)  The total tax imposed by this chapter is due and payable not later than March 1 after the end of the calendar year for which the tax is due.
(b)  A captive insurance company that had a net tax liability for the previous calendar year of more than $1,000 shall make semiannual prepayments of tax on March 1 and August 1.  The tax paid on each date must be equal to 50 percent of the total amount of tax the company paid under this chapter for the previous calendar year.  If the company did not pay a tax under this chapter during the previous calendar year, the tax paid on each date must be equal to the tax that would be owed on the aggregate of the gross premiums for the two previous calendar quarters.
(c)  The comptroller may refund any overpayment of taxes that results from the semiannual prepayment system prescribed by this section.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 223A - Captive Insurance Premium Tax › Section 223A.005. Tax Report

Sec. 223A.005.  TAX REPORT.  (a)  A captive insurance company liable for the tax imposed by this chapter must file annually with the comptroller a tax report on a form prescribed by the comptroller.
(b)  The tax report is due on the date the tax is due under Section 223A.004(a).
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 223A - Captive Insurance Premium Tax › Section 223A.006. Change in Due Dates

Sec. 223A.006.  CHANGE IN DUE DATES.  (a)  The comptroller by rule may change the dates for reporting and paying taxes under this chapter to improve operating efficiencies within the agency.
(b)  A change by the comptroller in a reporting or payment date must retain the system of semiannual prepayments prescribed by Section 223A.004.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 223A - Captive Insurance Premium Tax › Section 223A.007. Credit for Fees Paid

Sec. 223A.007.  CREDIT FOR FEES PAID.  (a)  A captive insurance company is entitled to a credit on the amount of tax due under this chapter for all examination and evaluation fees paid to this state during the calendar year for which the tax is due.  The limitations provided by Sections 803.007(1) and (2)(B) for a domestic insurance company apply to a captive insurance company.
(b)  The credit provided by this section is in addition to any other credit authorized by statute.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 223A - Captive Insurance Premium Tax › Section 223A.008. Failure to Pay Taxes

Sec. 223A.008.  FAILURE TO PAY TAXES.  A captive insurance company that fails to pay all taxes imposed by this chapter is subject to Section 203.002 of this code and Subtitles A and B, Title 2, Tax Code.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 224 - Reciprocal and Interinsurance Exchange Premium Tax › Section 224.001. Applicability of Chapter

Sec. 224.001.  APPLICABILITY OF CHAPTER.  This chapter applies to a reciprocal or interinsurance exchange that has a certificate of authority to engage in business in this state.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 224 - Reciprocal and Interinsurance Exchange Premium Tax › Section 224.002. Tax Imposed; Rate

Sec. 224.002.  TAX IMPOSED;  RATE.  (a)  An annual tax is imposed on each reciprocal or interinsurance exchange that:
(1)  does not file an election to be subject to the tax imposed by Chapter 221 in accordance with Section 224.003;  or
(2)  withdraws that election.
(b)  The rate of the tax is 1.7 percent of the reciprocal or interinsurance exchange's gross premium receipts.
(c)  A reciprocal or interinsurance exchange that is subject to the tax imposed by this chapter is not subject to the tax imposed by Chapter 221.
(d)  Except as provided by Subsection (b), Chapter 221 applies to the imposition, computation, and administration of the tax imposed by this chapter in the same manner that Chapter 221 applies to the tax imposed by that chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 224 - Reciprocal and Interinsurance Exchange Premium Tax › Section 224.003. Taxation Election

Sec. 224.003.  TAXATION ELECTION.  (a)  A reciprocal or interinsurance exchange may elect to be subject to the tax imposed by Chapter 221.
(b)  A reciprocal or interinsurance exchange that elects to be subject to the tax imposed by Chapter 221 must file with the comptroller on a form prescribed by the comptroller a written statement that the exchange has elected to be subject to that tax.  The exchange must file the form not later than the 31st day before the date on which the tax year for which the election is to be effective begins.
(c)  A reciprocal or interinsurance exchange that elects to be subject to the tax imposed by Chapter 221 continues to be subject to that tax for each tax year until the exchange withdraws the election under Subsection (d).
(d)  A reciprocal or interinsurance exchange may withdraw an election made under Subsection (b) by filing with the comptroller written notice of the withdrawal.  The exchange must file the notice not later than the 31st day before the date on which the tax year for which the withdrawal is to be effective begins.
(e)  A reciprocal or interinsurance exchange that elects to be subject to the tax imposed by Chapter 221 is not subject to the tax imposed by Section 224.002.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.001. Definitions

Sec. 225.001.  DEFINITIONS.  In this chapter:
(1)  "Affiliate" means, with respect to an insured, a person or entity that controls, is controlled by, or is under common control with the insured.
(2)  "Affiliated group" means a group of entities whose members are all affiliated.
(3)  "Control" means, with respect to determining the home state of an affiliated entity:
(A)  to directly or indirectly, acting through one or more persons, own, control, or hold the power to vote at least 25 percent of any class of voting security of the affiliated entity; or
(B)  to control in any manner the election of the majority of directors or trustees of the affiliated entity.
(4)  "Home state" means:
(A)  for an insured that is not an affiliated group described by Paragraph (B):
(i)  the state in which the insured maintains the insured's principal residence, if the insured is an individual;
(ii)  the state in which an insured that is not an individual maintains its principal place of business; or
(iii)  if 100 percent of the insured risk is located outside of the state in which the insured maintains the insured's principal residence or maintains the insured's principal place of business, as applicable, the state to which the largest percentage of the insured's taxable premium for the insurance contract that covers the risk is allocated; or
(B)  for an affiliated group with respect to which more than one member is a named insured on a single insurance contract subject to this chapter, the home state of the member, as determined under Paragraph (A), that has the largest percentage of premium attributed to it under the insurance contract.
(5)  "Premium" means any payment made in consideration for insurance and includes:
(A)  a premium;
(B)  premium deposits;
(C)  a membership fee;
(D)  a registration fee;
(E)  an assessment;
(F)  dues; and
(G)  any other compensation given in consideration for surplus lines insurance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.02, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.002. Applicability of Chapter

Sec. 225.002.  APPLICABILITY OF CHAPTER.  This chapter applies to a surplus lines agent who collects gross premiums for surplus lines insurance for any risk in which this state is the home state of the insured.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.03, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.003. Applicability of General Provisions of Other Law

Sec. 225.003.  APPLICABILITY OF GENERAL PROVISIONS OF OTHER LAW.  The provisions of Chapter 981, including provisions relating to the applicability and enforcement of that chapter, rulemaking authority under that chapter, and definitions of terms applicable in that chapter, apply to this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.004. Tax Imposed; Rate

Sec. 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.
(a-1)  Consistent with 15 U.S.C. Section 8201 et seq., this state may not impose a premium tax on nonadmitted insurance premiums other than premiums paid for insurance in which this state is the home state of the insured.
(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.  Notwithstanding the tax basis described by this subsection, the comptroller by rule may establish an alternate basis for taxation for multistate and single-state policies for the purpose of achieving uniformity.
(c)  If a surplus lines insurance policy covers risks or exposures only partially located in this state, and this state has not entered into a cooperative agreement, reciprocal agreement, or compact with another state for the collection of surplus lines tax as authorized by Chapter 229, the tax is computed on the entire policy premium for any policy in which this state is the home state of the insured.
(d)  Repealed by Acts 2011, 82nd Leg., 1st C.S., Ch. 4, Sec. 18.11(1), eff. September 28, 2011.
(d-1)  Repealed by Acts 2011, 82nd Leg., 1st C.S., Ch. 4, Sec. 18.11(1), eff. September 28, 2011.
(e)  Premiums on risks or exposures that are properly allocated to federal or international waters or are under the jurisdiction of a foreign government are not taxable in this state.
(f)  If this state enters a cooperative agreement, reciprocal agreement, or compact with another state for the allocation of surplus lines tax as authorized by Chapter 229, taxes due on multistate policies shall be allocated and reported in accordance with the agreement or compact.
(g)  Premiums on risks or exposures under ocean marine insurance coverage of stored or in-transit baled cotton for export are not subject to the tax imposed by this chapter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 4, eff. June 15, 2007.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.04, eff. September 28, 2011.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.11(1), eff. September 28, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1043 (H.B. 2972), Sec. 1, eff. January 1, 2014.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.005. Tax Exclusive

Sec. 225.005.  TAX EXCLUSIVE.  The tax imposed by this chapter is a transaction tax collected by the surplus lines agent of record and is in lieu of any other transaction taxes on these premiums.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.05, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.006. Collection of Tax by Agent

Sec. 225.006.  COLLECTION OF TAX BY AGENT.  (a) Except as otherwise provided by this section, the surplus lines agent shall collect from the insured the tax imposed by this chapter at the time of delivery of the cover note, certificate of insurance, policy, or other initial confirmation of insurance and the full amount of the gross premium charged by the eligible surplus lines insurer for the insurance.
(b)  Subject to Subsection (c) and notwithstanding any other law, if a surplus lines agent places an insurance policy with a managing underwriter, as defined by Section 981.002, the managing underwriter shall collect, report, and pay the tax imposed by this chapter.
(c)  A surplus lines agent and a managing underwriter may enter into an agreement to provide that the surplus lines agent is responsible for filing, reporting, collection, payment, and all other requirements imposed by this chapter and Chapter 981, including the requirement to pay the tax and file the tax report imposed by this chapter. An agreement under this subsection must be in writing and must be entered into at or before the time coverage is bound under the policy. The agreement may apply to multiple policies or all policies between a surplus lines agent and a managing underwriter.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 837 (H.B. 3410), Sec. 1, eff. January 1, 2012.
Acts 2013, 83rd Leg., R.S., Ch. 920 (H.B. 1405), Sec. 1, eff. January 1, 2014.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.007. Collected Taxes Held in Trust

Sec. 225.007.  COLLECTED TAXES HELD IN TRUST.  A surplus lines agent holds taxes collected under this chapter in trust.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.008. Tax Payment, Report, and Due Date

Sec. 225.008.  TAX PAYMENT, REPORT, AND DUE DATE.  (a)  The tax imposed by this chapter is due and payable on or before March 1.  A surplus lines agent shall file a tax report with the tax payment.
(b)  A surplus lines agent shall pay the tax imposed by this chapter and file the report using forms prescribed by the comptroller.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.009. Prepayment of Tax

Sec. 225.009.  PREPAYMENT OF TAX.  (a)  A surplus lines agent shall prepay the tax imposed by this chapter when the amount of the accrued taxes due is equal to at least $70,000.
(b)  A surplus lines agent shall prepay the taxes using a form prescribed by the comptroller.  The prepayment is due on or before the 15th day of the month following the month in which the amount of taxes described by this section accrues.
(c)  The comptroller by rule may change the accrued tax amount for which prepayment is required under Subsection (a) and the prepayment deadline under Subsection (b).
(d)  Notwithstanding Subsections (a), (b), and (c), if this state enters a cooperative agreement, reciprocal agreement, or compact with another state for the allocation of surplus lines tax as authorized by Chapter 229, the tax shall be allocated and reported in accordance with the terms of the agreement or compact.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 5, eff. June 15, 2007.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.06, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.010. Tax Absorption and Rebates Prohibited

Sec. 225.010.  TAX ABSORPTION AND REBATES PROHIBITED.  (a)  A surplus lines agent may not absorb the tax imposed by this chapter.
(b)  A surplus lines agent may not rebate all or part of the tax or the agent's commission as an inducement for insurance or for any other reason.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.011. Canceled or Rewritten Insurance Contract

Sec. 225.011.  CANCELED OR REWRITTEN INSURANCE CONTRACT.  If a surplus lines insurance contract is canceled and rewritten, the additional premium for purposes of the tax imposed by this chapter is the premium amount that exceeds the unearned premium of the canceled contract.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.012. State as Preferred Creditor

Sec. 225.012.  STATE AS PREFERRED CREDITOR.  If the property of a surplus lines agent is seized as the result of an intermediate or final decision of a court in this state, or if the business of a surplus lines agent is suspended by the action of a creditor or turned over to an assignee, receiver, or trustee, the tax imposed by this chapter and penalties due the state from the agent are preferred claims and the state is a preferred creditor and must be paid in full.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.013. Failure to Pay Taxes; Criminal Penalty

Sec. 225.013.  FAILURE TO PAY TAXES;  CRIMINAL PENALTY.  (a)  A surplus lines agent who does not pay the tax imposed by this chapter on or before the due date required by this chapter or who fraudulently withholds, appropriates, or otherwise uses any portion of the tax commits the offense of theft, regardless of whether the surplus lines agent has or claims an interest in the tax.
(b)  An offense under this section is punishable as provided by law.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 225 - Surplus Lines Insurance Premium Tax › Section 225.014. Limitation on Rulemaking

Sec. 225.014.  LIMITATION ON RULEMAKING.  In adopting rules under this chapter, the comptroller may not adopt a rule that exceeds the requirements of this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 6, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter A. Unauthorized Insurance Premium Tax › Section 226.001. Definitions

Sec. 226.001.  DEFINITIONS.  In this subchapter:
(1)  "Insurer" has the meaning assigned by Section 101.002 and includes:
(A)  an insurer that does not hold a certificate of authority in this state;
(B)  an eligible surplus lines insurer; and
(C)  an insurer that holds a certificate of authority in this state.
(2)  "Premium" includes any consideration for insurance, including:
(A)  a premium;
(B)  a membership fee;
(C)  an assessment; or
(D)  dues.
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. 11.005(a), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter A. Unauthorized Insurance Premium Tax › Section 226.002. Applicability of Subchapter

Sec. 226.002.  APPLICABILITY OF SUBCHAPTER.  This subchapter applies to an insurer who charges gross premiums for insurance on a subject resident, located, or to be performed in this state.
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. 11.005(b), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter A. Unauthorized Insurance Premium Tax › Section 226.003. Tax Imposed; Rate

Sec. 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.
(d-1) Notwithstanding Subsections (b) through (d), the comptroller by rule may establish that all premiums are considered to be on risks located in this state:
(1)  if the insured's home office or state of domicile or residence is located in this state; or
(2)  to accommodate changes in federal statutes or regulations that would otherwise limit the comptroller's ability to directly collect the taxes due under this section.
(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, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.005(c), eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 7, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter A. Unauthorized Insurance Premium Tax › Section 226.004. Tax Exclusive

Sec. 226.004.  TAX EXCLUSIVE.  The tax imposed by this subchapter is in lieu of all other insurance taxes.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter A. Unauthorized Insurance Premium Tax › Section 226.005. Tax Payment; Due Date

Sec. 226.005.  TAX PAYMENT;  DUE DATE.  (a)  The tax imposed by this subchapter is due and payable not later than:
(1)  March 1 after the end of the calendar year in which the insurance was effectuated, continued, or renewed;  or
(2)  another date prescribed by the comptroller.
(b)  An insurer shall pay the tax imposed by this subchapter using a form prescribed by the comptroller.
(c)  The tax imposed by this subchapter, if not paid when due, is a liability of the insurer, the insurer agent, and the insured.
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. 11.005(d), eff. September 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter A. Unauthorized Insurance Premium Tax › Section 226.006. Limitation on Rulemaking

Sec. 226.006.  LIMITATION ON RULEMAKING.  In adopting rules under this subchapter, the comptroller may not adopt a rule that exceeds the requirements of this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 8, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter B. Independently Procured Insurance Premium Tax › Section 226.051. Definitions

Sec. 226.051.  DEFINITIONS.  In this subchapter:
(1)  "Affiliate" means, with respect to an insured, a person or entity that controls, is controlled by, or is under common control with the insured.
(2)  "Affiliated group" means a group of entities whose members are all affiliated.
(3)  "Control" means, with respect to determining the home state of an affiliated entity:
(A)  to directly or indirectly, acting through one or more persons, own, control, or hold the power to vote at least 25 percent of any class of voting security of the affiliated entity; or
(B)  to control in any manner the election of the majority of directors or trustees of the affiliated entity.
(4)  "Home state" means:
(A)  for an insured that is not an affiliated group described by Paragraph (B):
(i)  the state in which the insured maintains the insured's principal residence, if the insured is an individual;
(ii)  the state in which an insured that is not an individual maintains its principal place of business; or
(iii)  if 100 percent of the insured risk is located outside of the state in which the insured maintains the insured's principal residence or maintains the insured's principal place of business, as applicable, the state to which the largest percentage of the insured's taxable premium for the insurance contract that covers the risk is allocated; or
(B)  for an affiliated group with respect to which more than one member is a named insured on a single insurance contract subject to this chapter, the home state of the member, as determined under Paragraph (A), that has the largest percentage of premium attributed to it under the insurance contract.
(5)  "Independently procured insurance" means insurance procured directly by an insured from a nonadmitted insurer.
(6)  "Premium" means any payment made in consideration for insurance and includes:
(A)  a premium;
(B)  premium deposits;
(C)  a membership fee;
(D)  a registration fee;
(E)  an assessment;
(F)  dues; and
(G)  any other compensation given in consideration for insurance.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.07, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter B. Independently Procured Insurance Premium Tax › Section 226.052. Applicability of Subchapter

Sec. 226.052.  APPLICABILITY OF SUBCHAPTER.  This subchapter applies to an insured who procures an independently procured insurance contract for any risk in which this state is the home state of the insured.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.08, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter B. Independently Procured Insurance Premium Tax › Section 226.053. Tax Imposed; Rate

Sec. 226.053.  TAX IMPOSED;  RATE.  (a)  A tax is imposed on each insured at the rate of 4.85 percent of the premium paid for the insurance contract procured in accordance with Section 226.052.
(b)  If an independently procured insurance policy covers risks or exposures only partially located in this state and this state has not joined a cooperative agreement, reciprocal agreement, or compact with another state for the allocation of nonadmitted insurance taxes as authorized by Chapter 229, the tax is computed on the entire policy premium for any policy in which this state is the home state of the insured.
(b-1)  Repealed by Acts 2011, 82nd Leg., 1st C.S., Ch. 4, Sec. 18.11(2), eff. September 28, 2011.
(c)  Premiums for individual life or individual disability insurance are not included in determining an insured's taxable premiums.
(d)  If this state enters into a cooperative agreement, reciprocal agreement, or compact with another state for the allocation of nonadmitted insurance taxes as authorized by Chapter 229, the tax due on multistate policies shall be allocated and reported in accordance with the agreement or compact.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 9, eff. June 15, 2007.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.09, eff. September 28, 2011.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 18.11(2), eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter B. Independently Procured Insurance Premium Tax › Section 226.054. Tax Payment by Certain Insureds

Sec. 226.054.  TAX PAYMENT BY CERTAIN INSUREDS.  (a)  Except as provided by Section 226.055, the tax imposed by this subchapter is due and payable not later than:
(1)  May 15 after the end of the calendar year in which the insurance was procured, continued, or renewed;  or
(2)  another date prescribed by the comptroller.
(b)  An insured who fails to withhold from the premium the amount of tax imposed by this subchapter is liable for the amount of the tax and shall pay the tax due.
(c)  The insured shall file a tax report and pay the tax.
(d)  The insured may designate another person to file the report and pay the tax.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter B. Independently Procured Insurance Premium Tax › Section 226.055. Tax Payment by Certain Corporations

Sec. 226.055.  TAX PAYMENT BY CERTAIN CORPORATIONS.  The amount of tax due and payable under this subchapter by a corporation that files a franchise tax report shall be reported directly to the comptroller and is due:
(1)  at the time the franchise tax report is due;  or
(2)  on another date prescribed by the comptroller.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter B. Independently Procured Insurance Premium Tax › Section 226.056. Effect on Other Law

Sec. 226.056.  EFFECT ON OTHER LAW.  Sections 226.051-226.054 do not abrogate or modify any other provision of this chapter or Chapter 101.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 226 - Unauthorized and Independently Procured Insurance Premium Tax › Subchapter B. Independently Procured Insurance Premium Tax › Section 226.057. Limitation on Rulemaking

Sec. 226.057.  LIMITATION ON RULEMAKING.  In adopting rules under this subchapter, the comptroller may not adopt a rule that exceeds the requirements of this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 10, eff. June 15, 2007.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 227 - Disposition of Proceeds of Certain Premium Taxes › Section 227.001. Disposition of Tax Proceeds

Sec. 227.001.  DISPOSITION OF TAX PROCEEDS.  (a)  The proceeds of the taxes imposed under Chapter 221, 222, 224, or 226 shall be deposited to the credit of the general revenue fund.
(b)  An amount equal to one-fourth of the proceeds deposited under Subsection (a) shall be transferred to the credit of the foundation school fund.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter A. General Provisions › Section 228.002. Definition of Affiliate

Sec. 228.002.  DEFINITION OF AFFILIATE.  In this chapter, "affiliate" of another person means:
(1)  a person that is an affiliate for purposes of Section 823.003;
(2)  a person that directly or indirectly:
(A)  beneficially owns 10 percent or more of the outstanding voting securities or other voting or management interests of the other person, whether through rights, options, convertible interests, or otherwise; or
(B)  controls or holds power to vote 10 percent or more of the outstanding voting securities or other voting or management interests of the other person;
(3)  a person 10 percent or more of the outstanding voting securities or other voting or management interests of which are directly or indirectly:
(A)  beneficially owned by the other person, whether through rights, options, convertible interests, or otherwise; or
(B)  controlled or held with power to vote by the other person;
(4)  a partnership in which the other person is a general partner;
(5)  an officer, director, employee, or agent of the other person; or
(6)  an immediate family member of an officer, director, employee, or agent described by Subdivision (5).
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter B. Administration and Promotion › Section 228.051. Administration by Comptroller

Sec. 228.051.  ADMINISTRATION BY COMPTROLLER.  The comptroller shall administer this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter B. Administration and Promotion › Section 228.052. Rules; Forms

Sec. 228.052.  RULES; FORMS.  The comptroller shall adopt rules and forms as necessary to implement this chapter, including rules that:
(1)  establish the application procedures for certified capital companies; and
(2)  facilitate the transfer or assignment of premium tax credits by certified investors.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter B. Administration and Promotion › Section 228.053. Report to Legislature

Sec. 228.053.  REPORT TO LEGISLATURE.  (a)  The comptroller shall prepare a biennial report concerning the results of the implementation of this chapter.  The report must include:
(1)  the number of certified capital companies holding certified capital;
(2)  the amount of certified capital invested in each certified capital company;
(3)  the amount of certified capital the certified capital company invested in qualified businesses as of January 1, 2006, and the cumulative total for each subsequent year;
(4)  the total amount of tax credits granted under this chapter for each year that credits have been granted;
(5)  the performance of each certified capital company with respect to renewal and reporting requirements imposed under this chapter;
(6)  with respect to the qualified businesses in which certified capital companies have invested:
(A)  the classification of the qualified businesses according to the industrial sector and size of the business;
(B)  the total number of jobs created by the investment and the average wages paid for the jobs; and
(C)  the total number of jobs retained as a result of the investment and the average wages paid for the jobs; and
(7)  the certified capital companies that have been decertified or that have failed to renew the certification and the reason for any decertification.
(b)  The comptroller shall file the report with the governor, the lieutenant governor, and the speaker of the house of representatives not later than December 15 of each even-numbered year.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter B. Administration and Promotion › Section 228.054. Promotion of Program

Sec. 228.054.  PROMOTION OF PROGRAM.  The Texas Economic Development and Tourism Office shall promote the program established under this chapter in the Texas Business and Community Economic Development Clearinghouse.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter C. Application for and General Operation of Certified Capital Companies › Section 228.101. Application for Certification

Sec. 228.101.  APPLICATION FOR CERTIFICATION.  (a)  An applicant for certification must file the application in the form prescribed by the comptroller.  The application must be accompanied by a nonrefundable application fee of $7,500.
(b)  The application must include an audited balance sheet of the applicant, with an unqualified opinion from an independent certified public accountant, as of a date not more than 35 days before the date of the application.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter C. Application for and General Operation of Certified Capital Companies › Section 228.102. Qualification

Sec. 228.102.  QUALIFICATION.  To qualify as a certified capital company:
(1)  the applicant must have, at the time of application for certification, an equity capitalization of at least $500,000 in unencumbered cash or cash equivalents;
(2)  at least two principals or persons employed to manage the funds of the applicant must have at least four years of experience in the venture capital industry; and
(3)  the applicant must satisfy any additional requirement imposed by the comptroller by rule.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter C. Application for and General Operation of Certified Capital Companies › Section 228.103. Management by and Certain Ownership Interests of Insurance Entities Prohibited

Sec. 228.103.  MANAGEMENT BY AND CERTAIN OWNERSHIP INTERESTS OF INSURANCE ENTITIES PROHIBITED.  (a)  An insurer, group of insurers, or other persons who may have state premium tax liability or the insurer's or person's affiliates may not directly or indirectly:
(1)  manage a certified capital company;
(2)  beneficially own, whether through rights, options, convertible interests, or otherwise, more than 10 percent of the outstanding voting securities of a certified capital company; or
(3)  control the direction of investments for a certified capital company.
(b)  Subsection (a) applies without regard to whether the insurer or other person or the affiliate of the insurer or other person is authorized by or engages in business in this state.
(c)  Subsections (a) and (b) do not preclude an insurer, certified investor, or any other party from exercising its legal rights and remedies, including interim management of a certified capital company, if authorized by law, with respect to a certified capital company that is in default of the company's statutory or contractual obligations to the insurer, certified investor, or other party.
(d)  This chapter does not limit an insurer's ownership of nonvoting equity interests in a certified capital company.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter C. Application for and General Operation of Certified Capital Companies › Section 228.104. Action on Application

Sec. 228.104.  ACTION ON APPLICATION.  (a)  The comptroller shall:
(1)  review the application, organizational documents, and business history of each applicant; and
(2)  ensure that the applicant satisfies the requirements of this chapter.
(b)  Not later than the 30th day after the date an application is filed, the comptroller shall:
(1)  issue the certification; or
(2)  refuse to issue the certification and communicate in detail to the applicant the grounds for the refusal, including suggestions for the removal of those grounds.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter C. Application for and General Operation of Certified Capital Companies › Section 228.105. Continuation of Certification

Sec. 228.105.  CONTINUATION OF CERTIFICATION.  To continue to be certified, a certified capital company must make qualified investments according to the schedule established by Section 228.151.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter C. Application for and General Operation of Certified Capital Companies › Section 228.106. Reports to Comptroller; Audited Financial Statement

Sec. 228.106.  REPORTS TO COMPTROLLER; AUDITED FINANCIAL STATEMENT.  (a)  Each certified capital company shall report to the comptroller as soon as practicable after the receipt of certified capital:
(1)  the name of each certified investor from whom the certified capital was received, including the certified investor's insurance premium tax identification number;
(2)  the amount of each certified investor's investment of certified capital and premium tax credits; and
(3)  the date on which the certified capital was received.
(b)  Not later than January 31 of each year, each certified capital company shall report to the comptroller:
(1)  the amount of the company's certified capital at the end of the preceding year;
(2)  whether or not the company has invested more than 15 percent of the company's total certified capital in a single business;
(3)  each qualified investment that the company made during the preceding year and, with respect to each qualified investment, the number of employees of the qualified business at the time the qualified investment was made; and
(4)  any other information required by the comptroller, including any information required by the comptroller to comply with Section 228.053.
(c)  Not later than April 1 of each year, each certified capital company shall provide to the comptroller an annual audited financial statement that includes the opinion of an independent certified public accountant.  The audit must address the methods of operation and conduct of the business of the company to determine whether:
(1)  the company is complying with this chapter and the rules adopted under this chapter;
(2)  the funds received by the company have been invested as required within the time provided by Section 228.151; and
(3)  the company has invested the funds in qualified businesses.
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.
2023 Texas Statutes › Insurance Code › Title 3 - Department Funds, Fees, and Taxes › Subtitle B - Insurance Premium Taxes › Chapter 228 - Premium Tax Credit for Certain Investments › Subchapter C. Application for and General Operation of Certified Capital Companies › Section 228.107. Renewal Fee; Late Fee; Exception

Sec. 228.107.  RENEWAL FEE; LATE FEE; EXCEPTION.  (a)  Not later than January 31 of each year, each certified capital company shall pay a nonrefundable renewal fee of $5,000 to the comptroller.
(b)  If a certified capital company fails to pay the renewal fee on or before the date specified by Subsection (a), the company must pay, in addition to the renewal fee, a late fee of $5,000 to continue the company's certification.
(c)  Notwithstanding Subsection (a), a renewal fee is not required within six months of the date on which a certified capital company's initial certification is issued under Section 228.104(b).
Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 1B.001, eff. April 1, 2009.