INSURANCE CODE

CHAPTER 224. RECIPROCAL AND INTERINSURANCE EXCHANGE PREMIUM TAX


	§ 224.001.  APPLICABILITY OF CHAPTER.  This chapter 
applies to a reciprocal or interinsurance exchange that has a 
certificate of authority to engage in business in this state.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 224.002.  TAX IMPOSED;  RATE.  (a)  An annual tax is 
imposed on each reciprocal or interinsurance exchange that:
		(1)  does not file an election to be subject to the tax 
imposed by Chapter 221 in accordance with Section 224.003;  or
		(2)  withdraws that election.                                                 
	(b)  The rate of the tax is 1.7 percent of the reciprocal or 
interinsurance exchange's gross premium receipts.
	(c)  A reciprocal or interinsurance exchange that is subject 
to the tax imposed by this chapter is not subject to the tax imposed 
by Chapter 221.
	(d)  Except as provided by Subsection (b), Chapter 221 
applies to the imposition, computation, and administration of the 
tax imposed by this chapter in the same manner that Chapter 221 
applies to the tax imposed by that chapter.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.          


	§ 224.003.  TAXATION ELECTION.  (a)  A reciprocal or 
interinsurance exchange may elect to be subject to the tax imposed 
by Chapter 221.
	(b)  A reciprocal or interinsurance exchange that elects to 
be subject to the tax imposed by Chapter 221 must file with the 
comptroller on a form prescribed by the comptroller a written 
statement that the exchange has elected to be subject to that tax.  
The exchange must file the form not later than the 31st day before 
the date on which the tax year for which the election is to be 
effective begins.
	(c)  A reciprocal or interinsurance exchange that elects to 
be subject to the tax imposed by Chapter 221 continues to be subject 
to that tax for each tax year until the exchange withdraws the 
election under Subsection (d).
	(d)  A reciprocal or interinsurance exchange may withdraw an 
election made under Subsection (b) by filing with the comptroller 
written notice of the withdrawal.  The exchange must file the notice 
not later than the 31st day before the date on which the tax year for 
which the withdrawal is to be effective begins.
	(e)  A reciprocal or interinsurance exchange that elects to 
be subject to the tax imposed by Chapter 221 is not subject to the 
tax imposed by Section 224.002.

Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.