Tex.
Ins. Code Section 223.003
Tax Imposed
(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 Section 223.005 (Premiums Paid to Title Insurance Agent). For purposes of this chapter, a person engages in the business of title insurance if the person engages in an activity described by Section 2501.005 (Business of Title Insurance).(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.(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.
Source:
Section 223.003 — Tax Imposed, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.223.htm#223.003 (accessed May 4, 2024).
