1-1 By: Ellis S.B. No. 1690
1-2 (In the Senate - Filed March 9, 2001; March 12, 2001, read
1-3 first time and referred to Committee on Finance; April 24, 2001,
1-4 reported favorably by the following vote: Yeas 10, Nays 0;
1-5 April 24, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the taxation of insurance companies and certain
1-9 insurance agents.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Article 4.01, Insurance Code, is amended to read
1-12 as follows:
1-13 Art. 4.01. TAX OTHER THAN PREMIUM TAX. All insurance
1-14 companies incorporated under the laws of this state shall hereafter
1-15 be required to render for county and municipal taxation all of
1-16 their real estate and all furniture, fixtures, automobiles,
1-17 equipment, and data processing systems, as other such real estate
1-18 and tangible personal property is rendered in the city and county
1-19 where such property is located.
1-20 All other personal property owned by such insurance
1-21 companies, except fire insurance companies and casualty insurance
1-22 companies, shall be valued as other such property is valued for
1-23 assessment by the taxing authority in the following manner:
1-24 From the total valuation of the entire assets of each
1-25 insurance company shall be deducted:
1-26 (a) All the debts of every kind and character owed by
1-27 such insurance company;
1-28 (b) All intangible personal property owned by such
1-29 insurance company;
1-30 (c) All reserves, being the amount of the debts of
1-31 such insurance company by reason of its outstanding policies in
1-32 gross.
1-33 From the remainder shall be deducted the assessed value of
1-34 all real estate and the assessed value of all furniture, fixtures,
1-35 automobiles, equipment, and data-processing systems, rendered for
1-36 taxation, and the remainder, if any there be, shall be taxable as
1-37 personal property by the city and county where the principal
1-38 business office of any such company is fixed by its charter.
1-39 All other personal property of fire insurance companies and
1-40 casualty insurance companies incorporated under the laws of this
1-41 state shall be valued as other such property is valued for
1-42 assessment by the taxing authority in the following manner:
1-43 From the total valuation of the entire assets of each
1-44 insurance company shall be deducted:
1-45 (a) All the debts of every kind and character owed by
1-46 such insurance company;
1-47 (b) All intangible personal property owned by such
1-48 insurance company;
1-49 (c) All reserves, which reserves shall be computed in
1-50 such manner as may be prescribed by the rules and regulations of
1-51 the State Board of Insurance, for unearned premiums and for all
1-52 bona fide outstanding losses.
1-53 From the remainder shall be deducted the assessed value of
1-54 all real estate and the assessed value of all furniture, fixtures,
1-55 automobiles, equipment, and data-processing systems, rendered for
1-56 taxation, and the remainder, if any there be, shall be taxable as
1-57 personal property by the city and county where the principal
1-58 business office of any company is fixed by its charter.
1-59 [Domestic insurance companies shall not be required to pay
1-60 any occupation or gross receipts tax except as otherwise provided
1-61 by this code.]
1-62 SECTION 2. Article 4.06, Insurance Code, is amended to read
1-63 as follows:
1-64 Art. 4.06. TAXES IMPOSED EXCLUSIVE. (a) This chapter
2-1 applies to insurance organizations authorized to do insurance
2-2 business in this state other than eligible surplus lines insurers.
2-3 (b) An insurance organization subject to a tax levied by
2-4 this chapter may not be required to pay any additional tax in
2-5 proportion to its gross premium receipts levied by this state or
2-6 any county or municipality except as otherwise provided by this
2-7 code or the Labor Code. This exemption may not be construed to
2-8 limit the applicability of other taxes, fees, and assessments that
2-9 are imposed by other chapters of this code. This exemption may not
2-10 be construed to prohibit the levy and collection of state, county,
2-11 and municipal taxes on the real and personal property of insurance
2-12 organizations, or the levy and collection of state, county, and
2-13 municipal taxes that are imposed by other laws of this state,
2-14 unless a specific exemption for insurance organizations is provided
2-15 in those laws. [No occupation tax other than herein imposed shall
2-16 be levied by the State or any county, city or town, upon any
2-17 insurance organization herein subject to the occupation tax in
2-18 proportion to its gross premium receipts, or its agents. The
2-19 occupation tax imposed by this chapter shall be the sole occupation
2-20 tax which any company doing business in this State under the
2-21 provisions of this chapter shall be required to pay.]
2-22 SECTION 3. Section 8, Article 9.59, Insurance Code, is
2-23 amended to read as follows:
2-24 Sec. 8. NO OTHER TAXES TO BE LEVIED OR COLLECTED;
2-25 EXCEPTIONS. (a) Title insurance companies and title insurance
2-26 agents subject to the tax levied by this article may not be
2-27 required to pay any additional tax in proportion to their gross
2-28 premium receipts levied by this state or any county or municipality
2-29 except as otherwise provided by this code and the Labor Code. This
2-30 exemption may not be construed to limit the applicability of other
2-31 taxes, fees, and assessments that are imposed by other chapters of
2-32 this code. This exemption may not be construed to prohibit the
2-33 levy and collection of state, county, and municipal taxes on the
2-34 real and personal property of title insurance companies and title
2-35 insurance agents, or the levy and collection of state, county, and
2-36 municipal taxes that are imposed by other laws of this state,
2-37 unless a specific exemption for title insurance companies and title
2-38 insurance agents is provided in those laws. [An occupational tax
2-39 may not be levied on title insurance companies or title insurance
2-40 agents who are subject to this premium tax by any county, city, or
2-41 town. The taxes in this article constitute all taxes collectible
2-42 under the laws of this state against any title insurance company or
2-43 title insurance agent, except maintenance taxes specifically levied
2-44 under the laws of this state and assessed by the State Board of
2-45 Insurance to support the various activities of the divisions of the
2-46 State Board of Insurance.]
2-47 (b) [No other tax may be levied or collected from any title
2-48 insurance company or title insurance agent by the state or any
2-49 county or city, but this law may not be construed to prohibit the
2-50 levy and collection of state, county, and municipal taxes on the
2-51 real and personal property of the title insurance company or title
2-52 insurance agent.] The premium tax is levied on all amounts defined
2-53 to be premium in this Chapter, whether paid to the title insurance
2-54 company or retained by the title insurance agent, such tax being in
2-55 lieu of the tax on the premium retained by the agent. The State of
2-56 Texas facilitates the collection of the premium tax on the premium
2-57 retained by the agent by setting the division of the premium
2-58 between insurer and agent so that the insurer receives the premium
2-59 tax due on the agent's portion of the premium and remits it to the
2-60 State.
2-61 SECTION 4. The following provisions of the Insurance Code
2-62 are repealed:
2-63 (1) Section 14, Article 4.10; and
2-64 (2) Section 9, Article 4.11.
2-65 SECTION 5. (a) This Act takes effect September 1, 2001.
2-66 (b) The change in law made by this Act does not affect taxes
2-67 imposed before the effective date of this Act, and the law in
2-68 effect before the effective date of this Act is continued in effect
2-69 for purposes of the liability for and collection of those taxes.
3-1 * * * * *