Tex.
Ins. Code Section 226.053
Tax Imposed; Rate
(a)
A tax is imposed on each insured at the rate of 4.85 percent of the premium paid for the insurance contract procured in accordance with Section 226.052 (Applicability of Subchapter).(b)
If an independently procured insurance policy covers risks or exposures only partially located in this state and this state has not joined a cooperative agreement, reciprocal agreement, or compact with another state for the allocation of nonadmitted insurance taxes as authorized by Chapter 229 (Cooperative Agreements with Other States), the tax is computed on the entire policy premium for any policy in which this state is the home state of the insured.(b-1)
Repealed by Acts 2011, 82nd Leg., 1st C.S., Ch. 4, Sec. 18.11(2), eff. September 28, 2011.(c)
Premiums for individual life or individual disability insurance are not included in determining an insured’s taxable premiums.(d)
If this state enters into a cooperative agreement, reciprocal agreement, or compact with another state for the allocation of nonadmitted insurance taxes as authorized by Chapter 229 (Cooperative Agreements with Other States), the tax due on multistate policies shall be allocated and reported in accordance with the agreement or compact.
Source:
Section 226.053 — Tax Imposed; Rate, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.226.htm#226.053 (accessed Jun. 5, 2024).
