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Premium Tax – Licensed Insurers
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Property and Casualty insurance premiums are reported on a premium written basis. Amounts reported on the NAIC Annual Statement may require adjustments in order to satisfy Texas tax reporting requirements.
Life, and Accident and Health premiums are reported on a received basis. Amounts reported on the NAIC Annual Statement may also require adjustments in order to satisfy Texas tax reporting requirements.
As applicable, complete Sections I, II and/or III.
Section I - Life/Health Maintenance Organizations and/or Section II – Accident and Health, as Applicable
Enter the total gross amounts of premiums, membership fees, assessments, dues, revenues, and other considerations received by the insurer or health maintenance organization in a calendar year from any kind of health maintenance organization certificate or contract or insurance policy or contract covering risks on individuals or groups located in this state.
Premiums and revenues received from the State Treasury for insurance coverage provided under Medicaid and the Children's Health Insurance Program (CHIP) are subject to tax.
Enter employee contributions applied toward the cost of the accident and health benefits an insurer provides for its employees, if not included in gross premium.
Non-taxable premiums: Enter the total non-taxable premiums and/or revenues that must then be entered on the Worksheet for Non-Taxable Premiums.
Section III - Property and Casualty/Title
Enter the gross amount of property and casualty insurance premiums, membership fees, assessments, dues and any other consideration written during the year for policies or contracts covering property or risks located in Texas; or the gross amount of title insurance premiums, membership fees, dues and any other consideration received during the year for policies or contracts covering property located in Texas.
Both title agents and insurers are subject to the premium tax; however, the state of Texas facilitates the collection of the premium tax on the premium retained by the agent by setting the division of the premium between insurer and agent so that the insurer receives the premium tax due on the agent’s portion of the premium and remits it to the state. The current division of premium allows the agent to retain 85% of the premium charged, while the insurer receives 15%.
Non-taxable premiums: Enter the total non-taxable premiums and/or revenues that must then be entered on the Worksheet for Non-Taxable Premiums.
Credits: Enter the total examination expenses paid to the Texas Department of Insurance (TDI) or expenses paid to a third party specifically required as part of a TDI examination plus any overhead assessment paid to the TDI during the tax year.
Credit is not allowed for the following:
- examination expenses incurred by representatives of the TDI that are directly attributable to an examination of the books, records, accounts or principal offices of a domestic insurance company located outside this state;
- examination expenses or fees paid to another state; or
- examination expenses paid in a different year.
The examination expense credit is limited to the amount of tax due, and any unused credits do not carry forward.
Credits claimed that exceed the allowable amount reflected in the TDI’s records will result in additional tax due, while credits claimed that are less than the amount the insurer is entitled to claim may result in a refund.
Examination expense credits we not allowed to be claimed as a premium tax credit in tax years 2012 and 2013.
Do not enter guaranty association assessments, CAPCO, TWIA or similar credits; the Webfile system automatically populates this field.
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