Texas Insurance Code 223.003 – Tax Imposed
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(a) An annual tax is imposed on all premiums from the business of title insurance. The rate of the tax is 1.35 percent of title insurance taxable premiums for a calendar year, including any premiums retained by a title insurance agent as provided by § 223.005. For purposes of this chapter, a person engages in the business of title insurance if the person engages in an activity described by § 2501.005.
(b) Except as provided by Subsection (c), in determining a title insurance company’s taxable premiums, the company shall include the total amounts of premiums received in a calendar year from title insurance written on property located in this state.
Terms Used In Texas Insurance Code 223.003
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) The following premiums are not included in determining a title insurance company’s taxable premiums:
(1) premiums received from other title insurance companies for reinsurance; and
(2) returned premiums and dividends paid to policyholders.
(d) In determining a title insurance company’s taxable premiums, a title insurance company is not entitled to a deduction for premiums paid for reinsurance.