OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
GROVER SELLERS
Al-rol?N~ GmtCU‘
r"
HonorableQeorge 8. Butler,Chairman
Board of InsuranceComalssfoners
Austin 14, Texas
Dear Xr. iutler*
OpinloaIfo.O-7235
A .
Rer Whether
oi this Depsrtmentin
anmer to the r0
s OS Article7064, RevisedCivil
S 925, an as follouar .~~
uraauo caa~ tmnaacrtlngthe
. . title . . . or aa.yother klad
Of i.BEcCr bU8iIiOB8 Other thsn the
lie iasuraaoe,rlthin thir State . . .
at the tire of flllng its annual statement,shall
report to the Commlssloner, of Insuranoethe gro86
amount of premium receivedin the State upon
property, and frm pexmm~ resldlng in the State
during the precedingyear, and .eacbof such com-
pauier shall spayan anaual tax upon such gross
premiumreceipt6as iollovar. . . lrosuch lnsur-
aace caspaagshall recelrea permit to do business
131
l$morableGeorge B,'ktler, Chairwan,page 2
in thla State until ruoh taxes am paid.
i llooocupatlontax shall be levied cn insu&~e' "
coppaalos herein rubjootedto a grow premium.I+
celpt tax by uy ootmtr,olty or tova. . . pk
taaer 8ioresald&all oonrtitute all tams and
llcenaefees oolleotlbleundo* the lava of,this
State againatsay rawh S.a8uraace coopaales.
*
i
The foregoingArtlolovad lateraaendedby House Blll
Ho. 8, Aatr 1936, fhird Called Session 2040, obapter 495
Artlale4, Section51 House Bill lo. #%ts 1937, 45th Lsgl:-
latpn, page 525, Chapter250, Section1; &use Bill Ilo.556,
Aotm 19 9, 46th Leglslatme, page 6381 and House Bill lo. 8,
.Aotn 19z1, 57th Legislature,page 269, Chapter184, Artlele 18,
Seotloa1. form of theseaaeadnnntsohange6the materialprovi-
aions of Artlole 7064 above a&t forth but relatedmalnlf to the
uount c4f $he tax, addithaal alassltluatltm8 of rubibjeats,
and
other matte= not pertbent to this question.
/. House Bill 153, A&s 3929, 41st Legirlatwe, page n,
,Chapter40, (oodlf%edas &302a, Veraoaae Annotetbd Civil Statutes)
-.providedfor the areationof aoqwratkm for ovnl.ng abstract
plants,%nsur%ngtltleu,lendtigraney and dealingin saiouritles
aa actlngam trwtee8 satlior llegnlation of ruab oorporations
by the Board of fnsumnce Calmloners. Tbo pertinentsections
s of this &at are a@ follows(all emphaseshereafteradded)I
%eotlon 7. me general law epplicableto
paymentof ilUng few and fmnchise taxes of.oor-
poratlonsbaviaga capitalstoolt.anherebymade
applicableto oorporatiensooalngunder the provl-
rloas of thlr Act. Doaneatia aoroortLfion8 o$mmt-
lnu under thla lav shall not be mqulred to wx
premium taxO8.' : . ..~.
..
I. ls4lotlm 8. The aborter of oorporatloa8in-
aorporutedhereunder,aad .tbeaaendmnts thebto,
ibis11b fil*d lfiththe Boati of xnmlranceCmls-
%eotloo 22. Aay oorporatlonorgaairedand
lntorponstedunder the lavr of arq Other rtate, ter-
for the purposeof transactinga
ritory or ootnrt*~
or title guarantybuslners&all be
title lnr,uranoe
-.
132
HonorableGeorge B. ButloP,chplman, page 3
required to par the ~a80 filing tee8 and occupa- '
.-tl6n tax 8ny foreigncarualtyoompanyir re-.;
a8
qufred to pa In order to procure a permit to @
buslnersIn Faxar. Such foreigntitle ccmpanl'es
vi11 not be requiredto pay a franchxse~xu,~
or pr~vllege t8x
That a fr8nahfre tax 18 aimoctoupstfon
under the lava of t&i8 State 1s aaqueatloned.By virtue of tbe above
seations,doaestlutitle Irmaranoe~~or title gusrantyoapanier paid
a franohlrotax vhile foreigntitle Insuranceor title guamaty cots-
panles paid a gaw88 premium moelpts tax under the provI8lm8 of
Artlole7064, sappn.
It is a w&titeref oaum and gene~lknovledge that
‘afterthe au me Co-t of the UnIted States readend It8 opinion
,inJ-0, l94 ln tha aase of Southeartem Underwriter8 Aa8oalatlaa
v. United S&%&r, therebyholding the bu8ine8sof lnmmaas to be
latemtate oomonevhen oarriedkyand theborden ofamy of the
severalrtataa it ~88 the Lz&entlonof the 49t.bLegirlatwe to ea-
rot soab legis~tltm a8 ktght be neoe88aapf
to elirl.nate
the dimarlm-
ination,if any, in tbd taxationof foreigrrInsuranceoompanlerrand
daneatlolaamumnaecm11panle8~
The 49th Legtdlatwe themtqma emoted Bouse Bill 23, ,.
Acts 1945, 49th kgl8lature, pa@ 442, Chaptelr 279, (erroneously
codifiedas Artlole 47&a, .V.A. C. S.), vhlch providedfar the tax-
atian of all lasuraaooorgan%urtfoa8traasaatlag the bueIne8sof
Ufe, pen-1 aaaldeat,life and aocldent,or health an&aoaldent,
lsrumace for profit,or mutual bensiLt o$ prateationFn the State
of Tsxar, vhlah 8ptwlflcal4 repealedArtialer7064a and 4769 of
the Revlred Olvil Statute8of Texas and also oootaIneda general
m Zhe Leglslatawsalso enaotedliorueBill 9, Acts
19~14%hu~~iatme page 574 Chapter341 Section 1 .Vhfch
a&endedArtlole 7064 hkeInbefo4 referredto: Each of ibese bills
uar~oa~plemeatary to the other, It being the manliest Intentlonof
the &gi~l.atum the-by to tax vlthoutdirorlminatioa every foreign
Uad doaertielamranoe organizatloadobag evoly olars of inuunuloe
buatiees peaultted by the lavr of the State of Texar.
Artlale7064, as 80 aaezaddby the Aotr of 1945, pro-
oeeded to tax a& oeganlsatioas4olng a title inspranaeborlnessand
133
George 8. Butler,Chrlraaa,
Bonom?zble page 4
provided for 6 tax upon the gross predu~ ?eaelp4sIn a,p&axlmately
the same manor as ia the orlgirmlaot. ft &an&d 8@4rially the
awductlonof the rate of the t6x by investmentln ap#oved T4xas 80-
auritle8as defined la the rat. The last paragmpb 'ofthe 8mended
artiole~tr set forth verbatim I
%O ocoupaticaa b4 levied 051inBIll’-
tax Shall.
4~4 kapsuler her8ln rubjeatedto the g?O88 p?4mlum
receipttax by any ootmty,olty or tOvu.~All mutual
rmemai nov or he?mfter do-
b4nevol4nta88o8l.8tlon8
il~&JbU8lXi488h this stat4 tie? th4 b&O SyStast and
?O~X’4802dtLtiVO
fOrP Of gOV4l'lSB4Rt, Uh4thO? O?@lbOd
undelrthe lavs of this State o?a fon1nn state or
ainmtry,an exQapt fmiihe ~i0vI81on8~ofthis Ar-
blo1.s.Th4 t4xe8 lfo?48aldshall ocm8tItut6all taxeE
aolleatIbl4uut?4rthe lam GTEhl 3bt rcelnatq
Wl??:4?8OXOSpt 8UfOt4n8ii:tax68 $4-
8U8h iII$-k'aZi44
olally levlsduuder th4 'Isv8of this 8tate aBd a88e8Bed
by thb &wrd Of as-44 CQoPiS81OZl4?8 t0 Su.p&%?tthe
: various.aativltle4of the dlvlaiofu 4f the Boarciof Ia-
surance~~OLIBSIOMM, aad exaept If say auah carrier
" ia vritlng per80nalaocldent o? health and awldent ln-
BlllFLIIO4OthOP than VOl%S+4~‘8 kWiVJlW%Mti0li,
it shou h0
4
taxad as oth4nls4 prwld6d by lav ma aammt o? suoh
bU8iU48S~and except un4mploym4slt oamp4n8atl4rI tax4s
ltwisdwader Senat4Bill Bo. 5, pa484d by Third Called
Sessi~ of the ?ortr~fmwth Idglrlatum and amendments
the?4to. fo other -kaxshall b6 leviedor aolleotedf?om
any laauranoeaarrlerby the stateA oounty,alty or say
but this b hall t b4 ooautmmd to prohibit
tZevy aad eoll~4tloao~stete.'4oua~yand mn%olprl
tsr48 ~Uiwnths ?8al and p4?84nal-p?Qp4?ty4f SUOh 4arrler.
p\mlj OOO~lUtiV4 O? 8UtUd fillstIASUlUIh44 04Bml48
oarsled on by the members thenof solely for the proteo-
tlon oi.their ovn pmpstiy',aad not for profit, shall be
‘exarptfrktha provlsloarr Of thk lav. %%liSlet ahall
be omtllatIv4of all other fsV8 md *ha11TF-X-A?t141e
$758. RevisedCivil Statutesof 1925, ----f%&
as B1po anda
~o~gab.leGoor@ ri.Butler,Chsinaea,pege 5
Rmpmalm8~~9of tvo klndm--express or Irplied. An ex-
ptimm repeel 1s one oooompllmhedby positiveenaataeat ealaripg
thm Perpose ot the Legislature.'It may be *neral or?-8 pecial.
Uheem a MY enactmnt abrogatedany torrner act'on thd mame siubjeet
with vhlch it oleetrly and sanIfemt.ly
aanflictm,to the extent of'the
lnnoonmimteaa~ or repugrtanae beivetin the tvo, muoh kaeotment consti-
tutor 8 repealb? necemmaq Lpllaatlaa and ham the *ame effectam
an erpwsm repeal. TWquestlon of repeal Is-onm of lmglmlatlreln-
tmat.~ i'armhall v. State, 138 S. Y. 759; 39 Texas Jurisprudence,
Pp. 13O:and137.
*: Xt vi11 be noted tbat.theformgolngprovimionm of Ar-
tiole. 7064; 88 ulsnded, ltate‘thatr "The taxeaaforesaidmball oon-
mtitute all;-taxes collootibleus&d& the lavm of this State against
rnr much lnmwaaoe carriers. . .* and that "go other.- shell be
leviedar collectedfrcp au7 lns~ce aarr%eP by the State, . . ."
b&i of the forsgoing ~vbionm constitutes r.repeslbr lx~plice-
tlen of tlm e69hamlmedportioamof Seotlonm~ 7 and 8 of Article UO2a, -'
mupra.- '-
Tbo further9rovIml~ of the esmended rrtlale that 'thim
. all other lam only inmots~~a8 then le
orgemlZiii affeoted by thti.hotqr others -9 80
am providedabove,’ oonstltutesan ax-
p-mm generalre9eal of all,thomeprrrts of Artiole1302e vhhich pro-
vldi for tbe aelleat@&tr#.or a payment by &memtLa title lnsvmncm
6~ tit16 ysranty em~poniem of fnrnohise taxmm to be oms4~med aal
collected tier the pro~lmlonm of Art&ale7084, RevisedC%vIl Stat-
utes, 1925, am wended, ~ffeotlvwS~ptamher3, 1945.
.- la thereforethe ipInIonof thlm Dmpartmemtthat the
It
k&d of Inmum.nce Conlmmionen barn DO euthorltyto and shouldnot
demendor"rcmiptfranohtietaxes tror any doebstle title ~murance
or title gumrinty ooqaay ohrtered inade~ e of thC8tate OS
$‘aram, but @at its is ~tbo duty ei muohdcmteatio
caa~pmnlem to psy
the grosr promlum roaeiptmtax rocordhg to the terns and 9?ovlmionm
Of'ktlEld 7064, R#ylmed Civil Statutes,1925, am amwtdedby Aotm
19%. 49th Legimlature,lupra.. ..
Yours verg trulJ
ATTORl5tY tB%BRAL OF TTah8