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Insurance Maintenance Tax

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This includes the Office of Public Insurance Counsel (OPIC) Assessment, Retaliatory Tax and Annual Statement Filing Fees

Non-Taxable Premiums

Although the statutory definition of gross premium excludes certain items, these amounts must be reported on the Worksheet for Non-Taxable Premiums. Refer to §221.002(c)(4) and 222.002(c)(1) and (2), Texas Insurance Code (TIC). As a result, the insurer or health maintenance organization is entitled to deduct those amounts, as well as any other non-taxable premiums as applicable, from gross premiums to arrive at net taxable premiums subject to maintenance taxes or fees.

Licensed Captive Insurance Companies — Maintenance Taxes/Fees

Captive insurance companies licensed in Texas must pay maintenance taxes on gross premiums received on any kind of insurance written by the company on each kind of property or risk located in Texas. Do not include premiums received from another authorized insurer for reinsurance and do not deduct premiums paid for reinsurance.

Taxable Premiums — For Fire and Allied, Casualty and Fidelity, Motor Vehicle and Accident and Health insurance only, as applicable, enter the total gross amounts of premiums; membership fees; assessments; dues; revenues; and any other considerations paid for insurance.

Licensed captive insurance companies may deduct the following from gross premium: returned premiums and dividends paid to policyholders.

Email the Commissioner's Order or other documentation granting a waiver of maintenance taxes due or send a copy to

Comptroller of Public Accounts
Revenue Accounting Division
P.O. Box 13528
Austin, TX 78711-3528

DO NOT complete any other lines on the maintenance tax return; a filing fee is not due and Retaliatory Tax applies to foreign insurers only.

Maintenance Taxes / Fees

Property and Casualty insurance premiums are reported on a premium written basis. Amounts reported on the NAIC Annual Statement, Statutory Page 14 may require adjustments in order to satisfy Texas tax reporting requirements.

Similarly, Life, and Accident and Health insurance premiums are reported on a received basis. Amounts reported on the NAIC Annual Statement, Life Insurance / Accident and Health Insurance State Page may also require adjustments in order to satisfy Texas tax reporting requirements.

The Texas Department of Insurance (TDI) has not set a maintenance tax rate for Aircraft insurance under Chapter 256, TIC. As a result, maintenance tax is not due until a rate is set.

Ocean Marine insurance is not subject to rate administration under §2252.001, TIC, and is not subject to maintenance tax. Refer to Publication 94-130 (PDF) for the yearly maintenance tax rates set by the TDI.

Fire and Allied Lines

Enter the total premiums written on Lines 1, 2.1, 2.2, 2.4, 3, 4, 5.1, 9 and 12 of NAIC Annual Statement, Statutory Page 14, Column 1 less Column 3. Note: Texas recognizes the Federal Preemption for Multi-Peril Crop Insurance reinsured through the Federal Crop Insurance Corporation (FCIC). Premiums written by insurers participating in the National Flood Insurance Program’s (NFIP) Write Your Own (WYO) program are exempt from maintenance tax but are subject to premium tax. Do not include these premiums in Fire and Allied Lines. Chapter 252, TIC.

Casualty and Fidelity

Enter the total premiums written on Lines 5.2, 6, 10, 11, 17.1 through 17.3, 18, and 23 through 30 of NAIC Annual Statement, Statutory Page 14, Column 1 less Column 3, and less any premiums reported on Line 17 for the unregulated professional liability lines listed in the Property and Casualty Filings Made Easy Guide – Part 5 of 9, available at www.tdi.texas.gov. Auto warranty premiums are reported on Line 17.1 or 17.2 as applicable, and unemployment insurance premiums reported on Line 28. Chapter 253, TIC.

Motor Vehicle

Enter the total premiums written on Lines 19.1 through 19.4, 21.1 and 21.2 of NAIC Annual Statement, Statutory Page 14, Column 1 less Column 3. Vendor's single interest physical damage premiums are included on Line 21.1. Chapter 254, TIC.

Workers' Compensation – TDI

Enter the premiums written prior to applying any deductible credits (premiums written plus deductible credits reported on a written basis.) Texas Administrative Code (TAC), Ch. 34, §3.828; Chapter 255, TIC; and §407A.302, Texas Labor Code (TLC).

Workers Compensation Commission (Division Workers' Compensation / Office of Injured Employee Counsel)

Enter the premiums written prior to applying any deductible credits (premiums written plus deductible credits reported on a written basis.) TAC, Ch. 34, §3.828; §403.003 and 407A.301, TLC.

Workers' Compensation Research

Enter the premiums written prior to applying any deductible credits (premiums written plus deductible credits reported on a written basis.) TAC, Ch. 34, §3.828 and §405.003, TLC.

Accident and Health

For property and casualty companies writing accident and health insurance, enter the total premiums reported on Lines 13, 14 and 15.1 through 15.8 of NAIC Annual Statement, Statutory Page 14, Column 1, as applicable. Chapter 257, TIC.

For life insurance companies writing accident and health insurance, enter the total premiums reported on NAIC Annual Statement, Schedule T, Line 44, Column 4. Chapter 257, TIC.

Life and Annuity

Enter the total premiums reported on NAIC Annual Statement, Schedule T, Line 44, Column 2. In addition, include all amounts from Schedule T, Columns 3, 5 and 7, that were applied to purchase annuity contracts during the year, regardless of whether or not morbidity or mortality rates apply to these amounts. To the degree that deposit-type accounts represent amounts deposited to accumulate interest or investment earnings, these deposits are not subject to maintenance tax until such time as the funds are actually applied to purchase annuity contracts. Chapter 257, TIC.

Local Mutual Aid Associations

Enter the gross life and accident and health premiums received. Chapter 257, TIC.

Non-Profit Prepaid Legal Services

Enter the gross revenues received for the issuance of prepaid legal services contracts in Texas. Chapter 260, TIC.

Title Company

Enter the total of premiums reported on NAIC Annual Statement, Schedule T, Line 44, Column 3, Column 4 and Column 5. The maintenance fee due is subject to the same standard division of premium as found in Chapter 223, TIC, and is administered in the same manner as the premium tax. Agents remit their portion of the fee to insurers, who then file and remit the combined, total maintenance fee to the Comptroller. Chapter 271, TIC.

Third Party Administration (TPA fees)

Enter the total amount of administrative or service fees received less any administrative or service fees received for qualified plans under the Employee Retirement Income Security Act of 1974 (ERISA) and less fees received from the administration of plans under Chapters 1551, 1575, 1576, 1579 and 1601, TIC. Administrative or service fees include all consideration, fees, assessments, payments, reimbursements, dues and any other compensation, monetary or otherwise, received for services as an administrator during the taxable year. TPAs that have a valid agent's license should NOT include sales commissions received. Chapter 259, TIC.

A TPA that administers workers' compensation benefit plans must be licensed by the TDI as a TPA and is subject to the TPA maintenance tax. Exclusions to the definition of an administrator can be found under §4151.002, TIC.

HMO – Basic Care

Enter the HMO basic care services by determining the correctly reported number of HMO enrollees covered by basic health service certificates or contracts at the end of each quarter. From these quarterly totals, subtract the number of enrollees for whom non-taxable revenues were reported for premium tax purposes. Divide the total of the four quarters' net taxable enrollees by 4 to determine the average number of enrollees. Chapter 258, TIC.

HMO – Single Care

Enter the HMO single care services by determining the correctly reported number of HMO enrollees covered by single health service certificates or contracts at the end of each quarter. From these quarterly totals, subtract the number of enrollees for whom non-taxable revenues were reported for premium tax purposes. Divide the total of the four quarters' net taxable enrollees by 4 to determine the average number of enrollees. Chapter 258, TIC.

HMO – Limited Care Services

Enter the HMO Limited Care services by determining the correctly reported number of HMO enrollees covered by limited health service certificates or contracts at the end of each quarter. From these quarterly totals, subtract the number of enrollees for whom non-taxable revenues were reported for premium tax purposes. Divide the total of the four quarters' net taxable enrollees by 4 to determine the average number of enrollees. Chapter 258, TIC.

Office of Public Insurance Counsel (OPIC) Assessment

The assessment is collected annually under Chapter 501, TIC, to defray the cost of administering and operating this office. Include policies for all premiums reported in the NAIC Annual Statement except policies written for coverage under Chapters 1551, 1575, 1576, 1579 and 1601, TIC. A captive insurance company licensed under Chapter 964, TIC, is not subject to this assessment. 34 TAC, §3.832.

The number of policies should be entered in Column A as follows:

All Property and Casualty Policies

Enter the total number of policies in force in Texas at the end of the calendar year.

Accident and Health Policies/Certificates of Coverage

Enter the total number of new Texas accident and health individual policies and/or new certificates of coverage under a group policy written for delivery and placed in force with initial premium paid in full during the calendar year.

Life Policies/Certificates of Coverage

Enter the total number of new Texas individual policies and/or new certificates of coverage under a group policy written for delivery and placed in force with the initial premium paid in full during the calendar year.

HMO Policies/Certificates of Coverage

Enter the total number of new Texas individual policies and/or new certificates of coverage under a group policy written for delivery and placed in force with the initial premium paid in full during the calendar year.

Title Policies

Enter the total number of owner policies and/or mortgagee policies written during the calendar year on property located in Texas for which the full basic premium was charged.

Long Term Care Facility Surcharge Fee

There is no surcharge fee due because revenue bonds have not been issued and debt has not been incurred. §2203.351, TIC.

Annual Statement Filing Fees

Insurance companies and miscellaneous organizations are required to file an Annual Statement with the TDI. The Comptroller collects the Annual Statement filing fee for certain licensed companies and miscellaneous organizations.

Entity Filing Fee
Reciprocal Exchanges $250.00
Foreign Registered Risk Retention Groups $250.00
Health Maintenance Organizations $250.00
Life, A and H Carriers and P and C Carriers writing AandH $250.00*
Local Mutual Aid Associations $250.00*
Burial Associations $250.00*
Statewide Mutual Assessment Companies $250.00*
Non-Profit Legal Services Corporations $200.00
P and C Carriers NOT writing AandH $20.00
Stipulated Premium Companies $20.00
Farm Mutual Companies $20.00
County Mutual Companies $20.00
Title Companies $20.00
Domestic Risk Retention Groups $20.00
Lloyds Companies Exempt
Licensed Captive Insurance Companies Exempt
Third Party Administrators Pay to the Department of Insurance
Accredited Reinsurer Pay to the Department of Insurance
Trusteed Reinsurer Pay to the Department of Insurance

* The Annual Statement filing fee for carriers with annual gross premiums in all states totaling less than $450,000.00 is $125.00.

Retaliatory Tax

Retaliatory tax applies to foreign and alien insurers licensed in Texas when the sum of the taxes or other charges imposed by the foreign insurer's state of incorporation (or the alien insurer's state of organization) exceed the sum of the taxes or other charges imposed by Texas on the same volume and kind of business. The Webfile program populates this field based on the computation shown on the Retaliatory Worksheet. Specific instructions can be found on the Retaliatory Tax worksheet's Help page. Chapter 281, TIC.

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