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Maintenance Taxes — Retaliatory Tax
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Retaliatory Worksheet
If the Retaliatory Tax due is zero because the insurance company is domiciled in Texas, check the box to skip the page.
Risk retention groups are not subject to retaliatory tax.
ALL foreign and alien insurers subject to the Retaliatory Tax MUST complete this worksheet.
The retaliatory computation requires that the same type and volume of premium must be the starting point for both Texas and the State of Organization.
Texas Column Computation
The amounts shown in the State of Texas column of the Retaliatory Worksheet must reflect the amounts imposed upon and paid by the insurer for the premium tax, maintenance tax, the Office of Public Insurance Counsel assessment, the annual statement filing or other fees. Enter these amounts in the appropriate section of the worksheet.
The correctly reported Texas premium must be the starting point for both the State of Texas and for the State of Organization.
Title insurers must include only their portion of the Texas title premium tax and the maintenance fee due. Taxes and fees on the agent's portion of the premium are not included. Do not include either the Automobile Burglary and Theft Prevention Assessment or the Volunteer Fire Department Assistance Fund assessment because each of these Texas assessments may be recouped from the policyholders, and are therefore not a burden to the insurer.
Annuities are not subject to premium tax in Texas.
Guaranty association assessments, CAPCO credits and TWIA assessments are not used in the calculation because these amounts may be recouped in the form of premium tax credits.
State of Organization Column Computation
Select the State of Organization.
Life
Life Premiums* — Enter the amount of gross life premiums. This amount must match the Texas amount.
Deductions authorized by State of Organization* — Enter the life deductions as authorized by the State of Organization.
Tax Rate — Enter the basic rate under the laws of the State of Organization.
Accident/Health
Accident and Health Premiums* — Enter the amount of gross accident and health premiums, including premiums and revenues received from the State Treasury for Medicaid and the Children's Health Insurance Program (CHIP). This amount must match the Texas amount.
Deductions authorized by State of Organization* — Enter the accident and health deductions as authorized by the State of Organization.
Tax Rate - State of Organization — Enter the basic rate under the laws of the State of Organization.
Annuities
Taxable annuity premiums for State of Organization — Enter annuities less annuity deductions as authorized by the State of Organization.
Tax Rate — Enter the basic rate form under the laws of the State of Organization.
Property/Casualty
Property and Casualty Premiums* — Enter the amount of gross property and casualty premiums. This amount must match the Texas amount.
Deductions authorized by State of Organization* — Enter the property and casualty deductions as authorized by the State of Organization.
Tax Rate — Enter the basic rate under the laws of the State of Organization.
Title
Title Insurance Premiums* — Enter the amount of gross title premiums. This amount must match the Texas amount.
Deductions authorized by State of Organization* — Enumerate the title deductions as authorized by the State of Organization, including any adjustment required to reflect the premium reporting method required by the State of Organization.
Tax Rate — Enter the basic rate under the laws of the State of Organization.
Adjustments
Credits or write-offs authorized by State of Organization — Amounts are not typically entered on this line and are subject to verification. Do not include amounts used as premium tax credits in another state based on investments or any other financial obligation resulting in a lower tax rate or premium tax credit.
Other Taxes — Enter corporate franchise taxes, income taxes, excise taxes, maintenance taxes, surtaxes, fire marshal, fire department, transportation or any other taxes that are required and applicable in the State of Organization. For title insurer's maintenance fees in the Texas Column, do not include the fees on the agent's portion of the "Division of Premium."
Other Tax Credits or Write-Offs — Amounts are not typically entered on this line and are subject to verification. Do not include amounts used as premium tax credits in another state based on investments or any other financial obligation resulting in a lower tax rate or premium tax credit.
Other Fees
- Special purpose assessments are not included. A special purpose assessment is an assessment that applies to insurance companies and only for losses or deficits such as guaranty association assessments, high-risk health pool assessments, joint underwriters association (JUA) assessments, windstorm association assessments or other similar assessments, both under the laws of this state and under the laws of any other state or territory.
- Enter annual statement filing fee, examination fees, overhead assessment fees, maintenance fees, certificate of authority fee or any other fees that are required and applicable in Texas or the State of Organization.
- Examination fees, overhead assessments and other miscellaneous fees and assessments paid to Texas or a company's State of Organization that may be taken as premium tax credits over the current or subsequent years must not be listed, as applicable. Note: Taxpayers organized in states that do not allow 100% premium tax credits on these fees or assessments must enter the amount that a similar Texas company would have been assessed during the previous tax year in the appropriate items in the State of Organization column. These amounts may be reduced by the amount of premium tax credits allowed, if any.
Other Fee Credits or Write-Offs — Amounts are not typically entered on this line and are subject to verification. Include credits or write-offs against other fees are to be deducted in both columns, as applicable. Do not include credits allowed by Texas or the State of Organization for special purpose assessments.
* Do not include adjustments allowed by State of Organization as a result of investments made in that state.
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