1-1 AN ACT
1-2 relating to the taxation of insurance companies and certain
1-3 insurance agents.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 4.01, Insurance Code, is amended to read
1-6 as follows:
1-7 Art. 4.01. TAX OTHER THAN PREMIUM TAX. All insurance
1-8 companies incorporated under the laws of this state shall hereafter
1-9 be required to render for county and municipal taxation all of
1-10 their real estate and all furniture, fixtures, automobiles,
1-11 equipment, and data processing systems, as other such real estate
1-12 and tangible personal property is rendered in the city and county
1-13 where such property is located.
1-14 All other personal property owned by such insurance
1-15 companies, except fire insurance companies and casualty insurance
1-16 companies, shall be valued as other such property is valued for
1-17 assessment by the taxing authority in the following manner:
1-18 From the total valuation of the entire assets of each
1-19 insurance company shall be deducted:
1-20 (a) All the debts of every kind and character owed by
1-21 such insurance company;
1-22 (b) All intangible personal property owned by such
1-23 insurance company;
1-24 (c) All reserves, being the amount of the debts of
1-25 such insurance company by reason of its outstanding policies in
2-1 gross.
2-2 From the remainder shall be deducted the assessed value of
2-3 all real estate and the assessed value of all furniture, fixtures,
2-4 automobiles, equipment, and data-processing systems, rendered for
2-5 taxation, and the remainder, if any there be, shall be taxable as
2-6 personal property by the city and county where the principal
2-7 business office of any such company is fixed by its charter.
2-8 All other personal property of fire insurance companies and
2-9 casualty insurance companies incorporated under the laws of this
2-10 state shall be valued as other such property is valued for
2-11 assessment by the taxing authority in the following manner:
2-12 From the total valuation of the entire assets of each
2-13 insurance company shall be deducted:
2-14 (a) All the debts of every kind and character owed by
2-15 such insurance company;
2-16 (b) All intangible personal property owned by such
2-17 insurance company;
2-18 (c) All reserves, which reserves shall be computed in
2-19 such manner as may be prescribed by the rules and regulations of
2-20 the State Board of Insurance, for unearned premiums and for all
2-21 bona fide outstanding losses.
2-22 From the remainder shall be deducted the assessed value of
2-23 all real estate and the assessed value of all furniture, fixtures,
2-24 automobiles, equipment, and data-processing systems, rendered for
2-25 taxation, and the remainder, if any there be, shall be taxable as
2-26 personal property by the city and county where the principal
3-1 business office of any company is fixed by its charter.
3-2 [Domestic insurance companies shall not be required to pay
3-3 any occupation or gross receipts tax except as otherwise provided
3-4 by this code.]
3-5 SECTION 2. Article 4.06, Insurance Code, is amended to read
3-6 as follows:
3-7 Art. 4.06. TAXES IMPOSED EXCLUSIVE. (a) This chapter
3-8 applies to insurance organizations authorized to do insurance
3-9 business in this state other than eligible surplus lines insurers.
3-10 (b) An insurance organization subject to a tax levied by
3-11 this chapter may not be required to pay any additional tax in
3-12 proportion to its gross premium receipts levied by this state or
3-13 any county or municipality except as otherwise provided by this
3-14 code or the Labor Code. This exemption may not be construed to
3-15 limit the applicability of other taxes, fees, and assessments that
3-16 are imposed by other chapters of this code. This exemption may not
3-17 be construed to prohibit the levy and collection of state, county,
3-18 and municipal taxes on the real and personal property of insurance
3-19 organizations, or the levy and collection of state, county, and
3-20 municipal taxes that are imposed by other laws of this state,
3-21 unless a specific exemption for insurance organizations is provided
3-22 in those laws. [No occupation tax other than herein imposed shall
3-23 be levied by the State or any county, city or town, upon any
3-24 insurance organization herein subject to the occupation tax in
3-25 proportion to its gross premium receipts, or its agents. The
3-26 occupation tax imposed by this chapter shall be the sole occupation
4-1 tax which any company doing business in this State under the
4-2 provisions of this chapter shall be required to pay.]
4-3 SECTION 3. Section 14, Article 4.10, Insurance Code, is
4-4 amended to read as follows:
4-5 Sec. 14. [NO OTHER TAXES TO BE LEVIED OR COLLECTED;]
4-6 EXCEPTIONS. [No occupational tax shall be levied on insurance
4-7 carriers or companies herein subjected to this premium receipts tax
4-8 by any county, city, or town. The taxes in this article shall
4-9 constitute all taxes collectible under the laws of Texas against
4-10 any such insurance carrier, except maintenance taxes specifically
4-11 levied under the laws of Texas and assessed by the commissioner and
4-12 administered by the comptroller.] Farm mutuals, local mutual aid
4-13 associations and burial associations are not subject to the
4-14 franchise tax.
4-15 [No other tax shall be levied or collected from any insurance
4-16 carrier by the state, county, or city or any town, but this law
4-17 shall not be construed to prohibit the levy and collection of
4-18 state, county, and municipal taxes upon the real and personal
4-19 property of such carrier.]
4-20 SECTION 4. Section 8, Article 9.59, Insurance Code, is
4-21 amended to read as follows:
4-22 Sec. 8. NO OTHER TAXES TO BE LEVIED OR COLLECTED;
4-23 EXCEPTIONS. (a) Title insurance companies and title insurance
4-24 agents subject to the tax levied by this article may not be
4-25 required to pay any additional tax in proportion to their gross
4-26 premium receipts levied by this state or any county or municipality
5-1 except as otherwise provided by this code and the Labor Code. This
5-2 exemption may not be construed to limit the applicability of other
5-3 taxes, fees, and assessments that are imposed by other chapters of
5-4 this code. This exemption may not be construed to prohibit the
5-5 levy and collection of state, county, and municipal taxes on the
5-6 real and personal property of title insurance companies and title
5-7 insurance agents, or the levy and collection of state, county, and
5-8 municipal taxes that are imposed by other laws of this state,
5-9 unless a specific exemption for title insurance companies and title
5-10 insurance agents is provided in those laws. [An occupational tax
5-11 may not be levied on title insurance companies or title insurance
5-12 agents who are subject to this premium tax by any county, city, or
5-13 town. The taxes in this article constitute all taxes collectible
5-14 under the laws of this state against any title insurance company or
5-15 title insurance agent, except maintenance taxes specifically levied
5-16 under the laws of this state and assessed by the State Board of
5-17 Insurance to support the various activities of the divisions of the
5-18 State Board of Insurance.]
5-19 (b) [No other tax may be levied or collected from any title
5-20 insurance company or title insurance agent by the state or any
5-21 county or city, but this law may not be construed to prohibit the
5-22 levy and collection of state, county, and municipal taxes on the
5-23 real and personal property of the title insurance company or title
5-24 insurance agent.] The premium tax is levied on all amounts defined
5-25 to be premium in this Chapter, whether paid to the title insurance
5-26 company or retained by the title insurance agent, such tax being in
6-1 lieu of the tax on the premium retained by the agent. The State of
6-2 Texas facilitates the collection of the premium tax on the premium
6-3 retained by the agent by setting the division of the premium
6-4 between insurer and agent so that the insurer receives the premium
6-5 tax due on the agent's portion of the premium and remits it to the
6-6 State.
6-7 SECTION 5. Section 9, Article 4.11, Insurance Code, is
6-8 repealed.
6-9 SECTION 6. (a) This Act takes effect September 1, 2001.
6-10 (b) The change in law made by this Act does not affect taxes
6-11 imposed before the effective date of this Act, and the law in
6-12 effect before the effective date of this Act is continued in effect
6-13 for purposes of the liability for and collection of those taxes.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1690 passed the Senate on
April 27, 2001, by a viva-voce vote; and that the Senate concurred
in House amendment on May 26, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1690 passed the House, with
amendment, on May 23, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor