CHAPTER 224. RECIPROCAL AND INTERINSURANCE EXCHANGE PREMIUM TAX - Texas Statutes

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.