| Issue Date: | |
|---|---|
| Revised Date: | 2018-03-14 |
Legal Citations
- Insurance Code sec. 251.004
- Labor Code sec. 407A.302, sec. 403.001, sec. 403.002, sec. 403.007, sec. 404.003, sec. 407.103, sec. 407.104
Object Type
Cash — Insurance
Origin Date
1957 by the 55th Leg.
Description
Maintenance taxes collected to pay administration costs of the Workers' Compensation Division and Office of Injured Employee Counsel within the Department of Insurance. The tax is levied on all insurance companies, certified self-insurers, and self-insurance groups. Each certified self-insurer pays a maintenance tax of not more than 2% of the total tax base of all self-insurers (407.103). Each insurance company pays a tax not to exceed 2% of the correctly reported gross workers' compensation insurance premiums (403.002). Each certified self-insurance group pays a maintenance tax based on gross premiums multiplied by the assessed rate. (407A.302).
If the department determines there's inadequate funding to meet obligations of GR Account 5101 - Subsequent Injury, the account shall be supplemented by collection of an additional maintenance tax. The tax rate must provide 120% of projected unfunded liabilities (403.007).
Due Date
Report and tax due before March 1 on gross premiums collected the previous year.
Self-insurance taxes are due on the 60th day after the issuance of a certificate of authority to self-insure and the 60th day after each annual renewal date.
Collecting Agencies
- 454 – Texas Department of Insurance Self-insured taxes deposited to GR Account 0036.
- 902 – Comptroller - State Fiscal Insurance company taxes deposited to GR.
Prior to 1993, the Texas Department of Insurance collected insurance company maintenance taxes. H.B. 1461, 73rd, Leg., R.S. changed the collection of maintenance taxes from the Department of Insurance to the Comptroller. Collections were used to fund activities of the Texas Workforce Commission (453). Workforce Commission was abolished and created as a division within the Department of Insurance.
Deposit Funds
- 0001 – General Revenue Fund Deposit of insurance company maintenance taxes for allocation to GR Account 0036.
- GR Account - 0036 – Texas Department of Insurance Operating Deposit of self-insurer maintenance taxes.
- GR Account - 5101 – Subsequent Injury Deposit of additional maintenance tax.
Note
Amended by S.B. 1, 71st Leg., 2nd C.S.
Revenue Code 3203 used from date of origin through August 31, 1995 to record maintenance taxes collected for the Workers' Compensation Commission and Research and Oversight Council on Workers' Compensation. This code replaces 3203 as of September 1, 1995 to record maintenance taxes collected in support of the Workers' Compensation Commission only.
Revenue Code 3207 was used for additional surcharge under Insurance Code art 5.76-5 §10. This was repealed April 1, 2007 by H.B. 2017, 79th Leg., R.S.
Supplemental maintenance tax for the Subsequent Injury Trust Fund added by H.B. 2600, 77th Leg., R.S.
Subsequent Injury Trust Fund (0918) recreated as GR Account 5101 - Subsequent Injury by H.B. 3378 and H.B. 3318, 78th Leg., R.S.
Self-insurance groups added by H.B. 2095, 78th Leg., R.S.
H.B. 7, 79th Leg., R.S. abolished the Workers' Compensation Commission and created the Workers' Compensation Division in the Texas Department of Insurance (454) and the Office of Injured Employee Counsel (448).
USAS Values
| Appropriation Year | 25 |
|---|---|
| USAS Title | INS MAINT TAX-WC DIV/OFC INJ EMP CNCL |
| Receipt Category | 04 – Insurance |
| Receipt Type | 01 – Taxes |
| Object Group | 30 – Revenues |
| USAS Status | A |
| Rev/Exp Category | 14 – INSURANCE TAXES |