Texas § IN.221.002 - TAX IMPOSED

§ IN.221.002. TAX IMPOSED

TAX IMPOSED; RATE. (a) An annual tax is imposed on each insurer that receives gross premiums subject to taxation under this section. The rate of the tax is 1.6 percent of the insurer's taxable premium receipts for a calendar year. (b) Except as provided by Subsection (c), in determining an insurer's taxable premium receipts, the insurer shall include the total gross amounts of premiums, membership fees, assessments, dues, revenues, and any other considerations for insurance written by the insurer in a calendar year from any kind of insurance written by the insurer on each kind of property or risk located in this state, including: (1) fire insurance; (2) ocean marine insurance; (3) inland marine insurance; (4) accident insurance; (5) credit insurance; (6) livestock insurance; (7) fidelity insurance; (8) guaranty insurance; (9) surety insurance; (10) casualty insurance; (11) workers' compensation insurance; (12) employers' liability insurance; (13) crop insurance written by a farm mutual insurance company; (14) home warranty insurance; and (15) travel insurance. (c) The following premium receipts are not included in determining an insurer's taxable premium receipts: (1) premium receipts received from the business of title insurance; (2) premium receipts received from the business of life insurance, personal accident insurance, life and accident insurance, or health and accident insurance for profit, written by a life insurance company, life and accident insurance company, health and accident insurance company, or for mutual benefit or protection in this state; (3) premium receipts received from another authorized insurer for reinsurance; (4) returned premiums and dividends paid to policyholders; (5) premiums excluded by another law of this state; and (6) premiums or service fees retained by a bail bond surety licensed under Chapter 1704 , Occupations Code, or by a property and casualty agent in connection with the execution or delivery of a bail bond as defined by Section 1704.001 , Occupations Code. (d) In determining an insurer's taxable premium receipts, an insurer 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 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315 ), Sec. 1, eff. June 15, 2007. Acts 2013, 83rd Leg., R.S., Ch. 896 (H.B. 1047 ), Sec. 1, eff. September 1, 2013. Acts 2019, 86th Leg., R.S., Ch. 1000 (H.B. 2587 ), Sec. 6, eff. September 1, 2019.