According the Comptroller FAQ, “(t)he surcharges authorized under Insurance Code, Section 2211.104are subject to premium tax under Insurance Code, Chapter 221 and maintenance tax under Chapters 252 and 253 as applicable. The Insurance Code does not provide an exemption or deduction for the premium surcharges and the amounts represent a consideration for insurance subject to both premium tax and maintenance tax. The premium surcharges are not included in the retaliatory tax computation under Insurance Code, Section 281.005(4)” ICT’s legal counsel is working with TDI and the Comptroller’s office; ICT will update our members on any further developments regarding the premium tax issue.
Insurance Council of Texas (ICT)
Phone: (512) 444-9611
Fax: (512) 444-0734
2801 South IH35, Austin, TX 78741
Correspondence should be directed to: P.O. Box 15
Austin, TX 78767-0015