Untitled Texas Attorney General Opinion

February 18, 1950 Hon. George B. Butler opinion no. v-1003. Chairman, Board of Insurance Commissioners Re: The legality of credlt- Austin, Texas ing examination and valuation fees against premium taxes paid on workmenls oompensatlon Dear Sir: insurance. Your letter requestlng our opinion relative to the above captioned matter asks: "WI.11you please advise me whether pre- q luresreceived by domestic Insurers on their workmen's oompensatloninsurance buslnesa ati to be reported and paid under the provisions of the present Article 7064a, and if so, wheth- er examination and valuation fees paid by such insurers shall be allowed as a credit on the premium taxes in the manner set out in your opinion No. Q-967, dated December 14, 1949.” The answer to your questions 1s found in the ewording of Articles 7064 and 7064a, V.C.S. _ Article 7064, Xf.C.9.(Acts 49th Leg., 1945, oh.341, Sec. 1, p.574) provides, in part: "Fiveryinsurance cornoration.Lloyd's or reciprocals, and any other orRan1zatlon or conoern transactinnthe business of fire, marine. marine Inland, acoldent, credit. title,.livestock,fidelity, guaranty, s&e- ty, casualty, workmeats compensation,em- ployers llabll~tg, or any other kind or character of insurance business, other than the business of life Insurance.personal ac- Hon. George B. Butler, page 2 (v-1003) report to the Board of Insurance CommFssion- ers the gross amount of premix received upon property located in this State or on risks located in this State during the pre-: ceding year, and each of such Insurance carriers shall pay an annual tax upon such gross premium receipts of three and five- tenths per cent. . . .'I (Emphasisours throughoutthis opinion unless otherwise indicated.) This Article then sets out variations depending on in- vestments in Texas securities, and continues thus: II . . . The taxes aforesaid shall con- stitute all taxes collectibleunder the laws of this State against any such Insurance carriers except maintenance taxes special- ly levied under the laws of this State and assessed by the Board of InsuranceCommls- sloners to support the various activities of the divisions of the Board of Insurance Commlssloners,and except if any such car- rier is writing personal accident or health and accident insurance other than workmen's compensation,it shall be taxed as otherwise provided by law on account of such business . . . ?Phls Act shall be cumulative of all other laws and shall repeal Article 479, Re- vised Civil Statutes of 19;i5,as amended, and a~11other laws onlr in so far as they levs'- any tax on any of the organizationsaffected by this Act or otherwise conflict with this Act, except as provided above." It is our opinion that it was the intent of the Legislature to subject all workmen's compensation insurancebusiness to the provisions of the above Act. Artlole 7064a, entitled "Tax on domestic life, accident and health Insurance organizations,"Acts 51st Leg., R.S.1949, ch.620, p.1365, provides, in part: "Every group of individuals,society, association,or corporation, (all of which shall be deemed included in the term 'Insur- ante brganlzatlon~wherever used in this Act) Hon. George B. Butler, Page 3 (v-1003) organized under the laws of this State ---- - and transactingthe business or 11x-einsurance, ersonal aocident Insurance,life and acoi- ent insurance. or health and accident in- surance for profit . . . shall . . . file its annual statement . . . shall pay an annual tax of one per cent (1%) of the gross amount of premiums collected during such year from persons residing or domiciled In the State of Texas on aalicles of Insurance . . . Dravlded all taxes and license fees collectible under the laws of this State from any such insur- ante organleatlon,organized under the laws of this State, except, and only except unem- ployment oompensationtaxes . . .; and In case of companies writinu workmen's compen- sation Insurance, the taxes otherwise Pro- vided by law on account of such business . . ." It is our opinion that Article 7064a does not tax workmen's compensationpremiums and specificallyin- dicates that in case of lLfe, health and aocident aom- panics also writing workmen's compensationInsurance, -their latter business is to be taxed under another stat- ute, i.e. Artlole 7064. In reply to your first question you are advis- ed that premitis received by domestio insurers on their workmen's compensation insurance business areto be re- ported and paid under the provisions of Article 7064, V.C.S., and not under AxWcle 7o64a, V.C.S. Your second question, depending upon'an affirmativeanswer to your first question, therefore need not be answered. Article 7064 does not provide credit for examination and valua- tion fees. See Opinion v-967. SUMMARY Premiums received by domestic Insurers on their workmen's oompensatlon Insurance Hon. George B. Butler, page 4 (Q-1003) business are to be reported and pald under PrOViSlOnS of Article 7064, Q.C.S. Yours very truly, PRICE DANIEL APPROQED: Attorney General Ned McDaniel State Affairs Division B; "i"rF Charles D. Mathews Q. F. Ta lor Executive Assistant Assistant QFTrammmw