INSURANCE CODE

TITLE 3. DEPARTMENT FUNDS, FEES, AND TAXES

SUBTITLE C. INSURANCE MAINTENANCE TAXES

CHAPTER 257. LIFE, HEALTH, AND ACCIDENT INSURANCE

Sec. 257.001.  MAINTENANCE TAX IMPOSED.  (a)  A maintenance tax is imposed on each authorized insurer, including a group hospital service corporation, managed care organization, local mutual aid association, statewide mutual assessment company, stipulated premium company, and stock or mutual insurance company, that collects from residents of this state gross premiums or gross considerations subject to taxation under Section 257.003.  The tax required by this chapter is in addition to other taxes imposed that are not in conflict with this chapter.
(b)  In this section, "managed care organization" means an organization authorized under this code to engage in the business of issuing health benefit plans that is not authorized as a health maintenance organization, preferred provider organization, or insurance company and the taxation of which is not preempted by federal law.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by: 
Acts 2007, 80th Leg., R.S., Ch. 932 (H.B. 3315), Sec. 14, eff. June 15, 2007.

Sec. 257.002.  MAXIMUM RATE;  ANNUAL ADJUSTMENT.  (a)  The rate of assessment set by the commissioner may not exceed 0.04 percent of the gross premiums and gross considerations subject to taxation under Section 257.003.
(b)  The commissioner shall annually adjust the rate of assessment of the maintenance tax so that the tax imposed that year, together with any unexpended funds produced by the tax, produces the amount the commissioner determines is necessary to pay the expenses during the succeeding year of regulating life, health, and accident insurers.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.

Sec. 257.003.  PREMIUMS AND CONSIDERATIONS SUBJECT TO TAXATION;  LIMIT.  (a)  An insurer shall pay maintenance taxes under this chapter on the correctly reported:
(1)  gross premiums collected from writing life, health, and accident insurance in this state, except as provided in Subsection (b);  and
(2)  gross considerations collected from writing annuity or endowment contracts in this state.
(b)  The gross premiums on which an assessment is based under this chapter may not include:
(1)  premiums received from the United States for insurance contracted for by the United States  in accordance with or in furtherance of Title XVIII of the Social Security Act (42 U.S.C. Section 1395c et seq.) and its subsequent amendments; or
(2)  premiums paid on group health, accident, and life policies in which the group covered by the policy consists of a single nonprofit trust established to provide coverage primarily for employees of:
(A)  a municipality, county, or hospital district in this state; or
(B)  a county or municipal hospital, without regard to whether the employees are employees of the county or municipality or of an entity operating the hospital on behalf of the county or municipality.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.
Amended by: 
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.006(a), eff. September 1, 2005.

Sec. 257.004.  MAINTENANCE TAX DUE DATES.  (a)  The insurer shall pay the maintenance tax annually, semiannually, or on another periodic basis, as determined by the comptroller.
(b)  The comptroller may require semiannual or other periodic payment only from an insurer whose maintenance tax liability under this chapter for the previous year was at least $2,000.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 1, eff. April 1, 2005.