Texas Administrative Code
Title 34 - PUBLIC FINANCE
Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3 - TAX ADMINISTRATION
Subchapter GG - INSURANCE TAX
Section 3.809 - Due Dates, Penalty and Interest, and Overpayments

Universal Citation: 34 TX Admin Code § 3.809

Current through Reg. 50, No. 13; March 28, 2025

(a) Premium and Maintenance Tax Return due date. The premium tax and maintenance tax return for each taxable year that ends the preceding December 31st shall be filed and the total amount of tax due shall be paid on or before the 1st day of March of each year or if a company is required to file an annual statement after March 1, the premium tax and maintenance tax report is required to be filed at that time.

(b) Premium tax prepayments. All Texas licensed insurers with a net tax liability for the previous calendar year in excess of $1000 must prepay premium tax semiannually.

(1) A semiannual prepayment of premium tax must be made on March 1, or at the same time that the annual statement is required to be filed, and on August 1. Each prepayment shall equal the lesser of one-half of the net premium tax due for the previous calendar year, or one-half of the current year's net premium tax due. If no premium tax was due during the previous calendar year, the prepayment will be based on the net tax that would be owed on the aggregate of premiums for the two previous calendar quarters based on the minimum tax rate specified by law.

(2) The amount due is the lesser of the net premium tax due from the previous year, or the actual net premium tax due for the current year multiplied by 50%.

(3) Because examination expense credits, valuation fee credits, and guaranty association assessment credits have been factored into the net premium tax due line item on the annual tax report, the prepayment amount should not be adjusted to reflect these credits.

(c) Penalty and interest. Late payment or underpayment of any insurance tax, assessment, or fee will result in the application of penalty and interest.

(1) Late payment. Failure to file and pay taxes, assessments, and fees by the due date as provided under the Insurance Code will subject a taxpayer to penalty and interest under Tax Code, Title 2, Subtitles A and B.

(2) Underpayment. Failure to file and pay taxes, assessments, and fees, as provided under Insurance Code, Article 4.10, §6(b), Article 4.11, §13(a), and Article 9.59, §3(b), will subject a taxpayer to penalty and interest under Tax Code, Title 2, Subtitles A and B, on the difference between the amount of semiannual prepayment tax actually paid and the net premium tax due.

(3) Penalty. A 5.0% penalty is due on the amount of any insurance tax, assessment, or fee that is not paid when due. If any of the taxes, assessments, or fees are not paid within 30 days after the due date, an additional 5.0% penalty is imposed on the amount that remains unpaid.

(4) Interest. Delinquent taxes accrue interest beginning 60 days after the due date. For example, if payment is made on the 61st day after the due date, one day's interest is due. For reports due on or after January 1, 2000, the annual rate of interest on delinquent taxes is the prime rate plus one percent, as published in the Wall Street Journal on the first day of each calendar year that is not a Saturday, Sunday, or legal holiday.

(d) Overpayment of tax liability. Commencing with the tax return due on March 1, 1995, if the sum of the semiannual prepayments exceeds the net premium tax due as determined by the accurate and correct filing of the original or amended annual tax return, the overpayment will be automatically refunded or credited to the taxpayer unless the taxpayer notifies the comptroller in writing to apply the overpayment to another period or unless the taxpayer's account reflects an outstanding liability in any other tax collected by the comptroller.

(e) Interest on refunds. Under Tax Code, Title 2, a refund granted for a report due on or after January 1, 2000, for an amount found to be erroneously paid, will include interest at the same variable interest rate charged on delinquent taxes. The applicable interest rate is 1.0% plus the prime rate as published in the Wall Street Journal on the first business day of each year. Interest accrues beginning the later of 60 days after the date of payment or the due date of the tax report. A refund for a report due before January 1, 2000 does not accrue interest. Interest does not accrue on a credit taken on a taxpayer's report.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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