State Codes and Statutes

Statutes > Texas > Insurance-code > Title-3-department-funds-fees-and-taxes > Chapter-223-title-insurance-premium-tax

INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE B. INSURANCE PREMIUM TAXES

CHAPTER 223. TITLE INSURANCE PREMIUM TAX

Sec. 223.001. APPLICABILITY OF CERTAIN DEFINITIONS. In this

chapter, a term defined by Chapter 2501 has the meaning assigned

by that chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.002. APPLICABILITY OF CHAPTER. This chapter applies to

a title insurance company that receives premiums subject to

taxation under Section 223.003.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.003. TAX IMPOSED. (a) An annual tax is imposed on all

premiums from the business of title insurance. The rate of the

tax is 1.35 percent of title insurance taxable premiums for a

calendar year, including any premiums retained by a title

insurance agent as provided by Section 223.005. For purposes of

this chapter, a person engages in the business of title insurance

if the person engages in an activity described by Section

2501.005.

(b) Except as provided by Subsection (c), in determining a title

insurance company's taxable premiums, the company shall include

the total amounts of premiums received in a calendar year from

title insurance written on property located in this state.

(c) The following premiums are not included in determining a

title insurance company's taxable premiums:

(1) premiums received from other title insurance companies for

reinsurance; and

(2) returned premiums and dividends paid to policyholders.

(d) In determining a title insurance company's taxable premiums,

a title insurance company 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, Sec. 3, eff. June 15, 2007.

Sec. 223.004. LIMITATION ON CERTAIN ADDITIONAL TAXES. (a)

Except as otherwise provided by this code or the Labor Code, a

title insurance company or title insurance agent subject to the

tax imposed by this chapter may not be required to pay any

additional tax imposed by this state or a county or municipality

in proportion to the company's or agent's gross premium receipts.

(b) This section does not:

(1) limit the applicability of other taxes, fees, and

assessments imposed by this code; or

(2) prohibit the imposition and collection of state, county, and

municipal taxes on the property of title insurance companies or

title insurance agents or state, county, and municipal taxes

imposed by other laws of this state, unless a specific exemption

for title insurance companies or title insurance agents is

provided in those laws.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.005. PREMIUMS PAID TO TITLE INSURANCE AGENT. (a)

Premiums received from the business of title insurance are

subject to the tax under this chapter regardless of whether paid

to a title insurance company or retained by a title insurance

agent, with the tax being in lieu of the tax on the premiums

retained by a title insurance agent.

(b) The state facilitates the collection of the premium tax on

the premiums retained by a title insurance agent by establishing

the division of the premiums between the title insurance company

and title insurance agent so that the company receives the

premium tax due on the agent's portion of the premiums and remits

it to the state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.006. TAX DUE DATES. (a) The total tax imposed by this

chapter is due and payable not later than:

(1) March 1 after the end of the calendar year for which the tax

is due; or

(2) another date prescribed by the comptroller.

(b) A title 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 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.007. TAX REPORTS. (a) A title 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 223.006(a).

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.008. RULES. (a) The commissioner or the comptroller,

as appropriate, may adopt fair and reasonable rules, minimum

standards, and limitations as appropriate to augment and

implement this chapter.

(b) This section does not affect the comptroller's general

authority to adopt rules to promote the efficient administration,

collection, enforcement, and reporting of taxes under this code

or another insurance law of this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.009. CREDIT FOR FEES PAID. (a) A title insurance

company is entitled to a credit on the amount of tax due under

this chapter for all examination and evaluation fees paid to the

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 foreign insurance company.

(b) The credit provided by this section is in addition to any

other credit authorized by statute.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.004(a), eff. September 1, 2005.

Sec. 223.010. FAILURE TO PAY TAXES. A title insurance company

that fails to pay all taxes imposed by this chapter is subject to

Section 203.002.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.011. DISPOSITION OF REVENUE. Chapter 227 applies to

the disposition of the revenue from the tax imposed by this

chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

State Codes and Statutes

Statutes > Texas > Insurance-code > Title-3-department-funds-fees-and-taxes > Chapter-223-title-insurance-premium-tax

INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE B. INSURANCE PREMIUM TAXES

CHAPTER 223. TITLE INSURANCE PREMIUM TAX

Sec. 223.001. APPLICABILITY OF CERTAIN DEFINITIONS. In this

chapter, a term defined by Chapter 2501 has the meaning assigned

by that chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.002. APPLICABILITY OF CHAPTER. This chapter applies to

a title insurance company that receives premiums subject to

taxation under Section 223.003.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.003. TAX IMPOSED. (a) An annual tax is imposed on all

premiums from the business of title insurance. The rate of the

tax is 1.35 percent of title insurance taxable premiums for a

calendar year, including any premiums retained by a title

insurance agent as provided by Section 223.005. For purposes of

this chapter, a person engages in the business of title insurance

if the person engages in an activity described by Section

2501.005.

(b) Except as provided by Subsection (c), in determining a title

insurance company's taxable premiums, the company shall include

the total amounts of premiums received in a calendar year from

title insurance written on property located in this state.

(c) The following premiums are not included in determining a

title insurance company's taxable premiums:

(1) premiums received from other title insurance companies for

reinsurance; and

(2) returned premiums and dividends paid to policyholders.

(d) In determining a title insurance company's taxable premiums,

a title insurance company 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, Sec. 3, eff. June 15, 2007.

Sec. 223.004. LIMITATION ON CERTAIN ADDITIONAL TAXES. (a)

Except as otherwise provided by this code or the Labor Code, a

title insurance company or title insurance agent subject to the

tax imposed by this chapter may not be required to pay any

additional tax imposed by this state or a county or municipality

in proportion to the company's or agent's gross premium receipts.

(b) This section does not:

(1) limit the applicability of other taxes, fees, and

assessments imposed by this code; or

(2) prohibit the imposition and collection of state, county, and

municipal taxes on the property of title insurance companies or

title insurance agents or state, county, and municipal taxes

imposed by other laws of this state, unless a specific exemption

for title insurance companies or title insurance agents is

provided in those laws.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.005. PREMIUMS PAID TO TITLE INSURANCE AGENT. (a)

Premiums received from the business of title insurance are

subject to the tax under this chapter regardless of whether paid

to a title insurance company or retained by a title insurance

agent, with the tax being in lieu of the tax on the premiums

retained by a title insurance agent.

(b) The state facilitates the collection of the premium tax on

the premiums retained by a title insurance agent by establishing

the division of the premiums between the title insurance company

and title insurance agent so that the company receives the

premium tax due on the agent's portion of the premiums and remits

it to the state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.006. TAX DUE DATES. (a) The total tax imposed by this

chapter is due and payable not later than:

(1) March 1 after the end of the calendar year for which the tax

is due; or

(2) another date prescribed by the comptroller.

(b) A title 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 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.007. TAX REPORTS. (a) A title 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 223.006(a).

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.008. RULES. (a) The commissioner or the comptroller,

as appropriate, may adopt fair and reasonable rules, minimum

standards, and limitations as appropriate to augment and

implement this chapter.

(b) This section does not affect the comptroller's general

authority to adopt rules to promote the efficient administration,

collection, enforcement, and reporting of taxes under this code

or another insurance law of this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.009. CREDIT FOR FEES PAID. (a) A title insurance

company is entitled to a credit on the amount of tax due under

this chapter for all examination and evaluation fees paid to the

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 foreign insurance company.

(b) The credit provided by this section is in addition to any

other credit authorized by statute.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.004(a), eff. September 1, 2005.

Sec. 223.010. FAILURE TO PAY TAXES. A title insurance company

that fails to pay all taxes imposed by this chapter is subject to

Section 203.002.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.011. DISPOSITION OF REVENUE. Chapter 227 applies to

the disposition of the revenue from the tax imposed by this

chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.


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State Codes and Statutes

Statutes > Texas > Insurance-code > Title-3-department-funds-fees-and-taxes > Chapter-223-title-insurance-premium-tax

INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE B. INSURANCE PREMIUM TAXES

CHAPTER 223. TITLE INSURANCE PREMIUM TAX

Sec. 223.001. APPLICABILITY OF CERTAIN DEFINITIONS. In this

chapter, a term defined by Chapter 2501 has the meaning assigned

by that chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.002. APPLICABILITY OF CHAPTER. This chapter applies to

a title insurance company that receives premiums subject to

taxation under Section 223.003.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.003. TAX IMPOSED. (a) An annual tax is imposed on all

premiums from the business of title insurance. The rate of the

tax is 1.35 percent of title insurance taxable premiums for a

calendar year, including any premiums retained by a title

insurance agent as provided by Section 223.005. For purposes of

this chapter, a person engages in the business of title insurance

if the person engages in an activity described by Section

2501.005.

(b) Except as provided by Subsection (c), in determining a title

insurance company's taxable premiums, the company shall include

the total amounts of premiums received in a calendar year from

title insurance written on property located in this state.

(c) The following premiums are not included in determining a

title insurance company's taxable premiums:

(1) premiums received from other title insurance companies for

reinsurance; and

(2) returned premiums and dividends paid to policyholders.

(d) In determining a title insurance company's taxable premiums,

a title insurance company 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, Sec. 3, eff. June 15, 2007.

Sec. 223.004. LIMITATION ON CERTAIN ADDITIONAL TAXES. (a)

Except as otherwise provided by this code or the Labor Code, a

title insurance company or title insurance agent subject to the

tax imposed by this chapter may not be required to pay any

additional tax imposed by this state or a county or municipality

in proportion to the company's or agent's gross premium receipts.

(b) This section does not:

(1) limit the applicability of other taxes, fees, and

assessments imposed by this code; or

(2) prohibit the imposition and collection of state, county, and

municipal taxes on the property of title insurance companies or

title insurance agents or state, county, and municipal taxes

imposed by other laws of this state, unless a specific exemption

for title insurance companies or title insurance agents is

provided in those laws.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.005. PREMIUMS PAID TO TITLE INSURANCE AGENT. (a)

Premiums received from the business of title insurance are

subject to the tax under this chapter regardless of whether paid

to a title insurance company or retained by a title insurance

agent, with the tax being in lieu of the tax on the premiums

retained by a title insurance agent.

(b) The state facilitates the collection of the premium tax on

the premiums retained by a title insurance agent by establishing

the division of the premiums between the title insurance company

and title insurance agent so that the company receives the

premium tax due on the agent's portion of the premiums and remits

it to the state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.006. TAX DUE DATES. (a) The total tax imposed by this

chapter is due and payable not later than:

(1) March 1 after the end of the calendar year for which the tax

is due; or

(2) another date prescribed by the comptroller.

(b) A title 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 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.007. TAX REPORTS. (a) A title 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 223.006(a).

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.008. RULES. (a) The commissioner or the comptroller,

as appropriate, may adopt fair and reasonable rules, minimum

standards, and limitations as appropriate to augment and

implement this chapter.

(b) This section does not affect the comptroller's general

authority to adopt rules to promote the efficient administration,

collection, enforcement, and reporting of taxes under this code

or another insurance law of this state.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.009. CREDIT FOR FEES PAID. (a) A title insurance

company is entitled to a credit on the amount of tax due under

this chapter for all examination and evaluation fees paid to the

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 foreign insurance company.

(b) The credit provided by this section is in addition to any

other credit authorized by statute.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.004(a), eff. September 1, 2005.

Sec. 223.010. FAILURE TO PAY TAXES. A title insurance company

that fails to pay all taxes imposed by this chapter is subject to

Section 203.002.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.

Sec. 223.011. DISPOSITION OF REVENUE. Chapter 227 applies to

the disposition of the revenue from the tax imposed by this

chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1,

2005.


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