State Codes and Statutes
Statutes > Texas > Insurance-code > Title-3-department-funds-fees-and-taxes > Chapter-224-reciprocal-and-interinsurance-exchange-premium-tax
INSURANCE CODE
TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES
SUBTITLE B. INSURANCE PREMIUM TAXES
CHAPTER 224. RECIPROCAL AND INTERINSURANCE EXCHANGE PREMIUM TAX
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.
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.
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.
State Codes and Statutes
Statutes > Texas > Insurance-code > Title-3-department-funds-fees-and-taxes > Chapter-224-reciprocal-and-interinsurance-exchange-premium-tax
INSURANCE CODE
TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES
SUBTITLE B. INSURANCE PREMIUM TAXES
CHAPTER 224. RECIPROCAL AND INTERINSURANCE EXCHANGE PREMIUM TAX
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.
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.
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.
State Codes and Statutes
Statutes >
Texas >
Insurance-code >
Title-3-department-funds-fees-and-taxes >
Chapter-224-reciprocal-and-interinsurance-exchange-premium-tax INSURANCE CODE
TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES
SUBTITLE B. INSURANCE PREMIUM TAXES
CHAPTER 224. RECIPROCAL AND INTERINSURANCE EXCHANGE PREMIUM TAX
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.
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.
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.
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