Texas Administrative Code
Title 34 - PUBLIC FINANCE
Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3 - TAX ADMINISTRATION
Subchapter GG - INSURANCE TAX
Section 3.831 - Gross Premium Definitions for Property and Casualty; Life, Accident, and Health; Health Maintenance Organizations; and Title Insurance Companies; and Clarification of the Taxation on the Distribution of Title Premiums

(A) Gross premiums are the total gross amount of premiums, membership fees, assessments, dues, and any other considerations for the taxable year on insurance written on each and every kind of property or risk located in the state, with no deduction for premiums paid for reinsurance, and excluding:

(B) The following non-taxable premiums are deducted from gross premiums in order to calculate taxable premiums:

(C) Gross premium defined in subparagraph (A) of this paragraph applies to every insurance carrier, including Lloyds, reciprocal exchanges, and any other organization or concern writing gross premiums from the business of fire, marine, inland marine, accident, credit, livestock, fidelity, guaranty, surety, casualty, employers' liability, or any other kind or character of insurance. However, the definition does not apply to:

(A) Gross premiums are the total gross amount of all premiums, including membership fees, assessments, dues and any other consideration received during the taxable year, with no deduction for premiums paid for reinsurance, on each and every kind of life, accident, or health insurance policy or contract that covers persons who are located in the State of Texas, or the gross amount of revenues for the issuance of health maintenance organization certificates or contracts, and excludes:

(B) The following non-taxable premiums are deducted from gross premiums in order to calculate taxable premiums:

(C) The definition of gross premiums does not include annuities or annuity considerations. Therefore, annuities and annuity consideration are not subject to premium taxation under Article 4.11. However, annuities and annuity considerations are included for purposes of Article 4.17, Maintenance Tax on Gross Premiums, and are taxed accordingly. Maintenance taxes are assessed when annuities are purchased from insurance companies (at the time of annuitization), which is typically known as back-end reporting.

(D) The gross premium definition in subparagraph (A) of this paragraph applies to every insurance carrier that receives premiums from the business of life insurance, accident insurance, health insurance, life and accident insurance, life and health insurance, health and accident insurance, or life, health and accident insurance, including variable life insurance, credit life insurance, and credit accident and health insurance for profit or otherwise or for mutual benefit or protection in the State of Texas, and to every health maintenance organization that receives revenues for the issuance of certificates or contracts in the State of Texas.

(A) premiums received from other licensed title insurance companies for reinsurance; and

(B) return premiums paid to policyholders.

(A) Premium and maintenance taxes are levied on all amounts defined to be title premiums whether paid to the title insurance company or retained by the title insurance agent.

(B) The collection of the title premium tax and maintenance fee remitted to the comptroller on the premium retained by the title agent is incorporated in the division of the premium between insurer and agent so that the insurer receives the premium tax and maintenance fee due on the agent's portion of the premium.

(C) Title insurers and title agents are both subject to the premium and maintenance tax on their proportional share of the premiums and are separately liable for the tax if the insurer fails to remit the tax due on the agent's portion.

(D) The insurer is required to remit to the comptroller the total title premium and maintenance taxes due.