TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 3. TAX ADMINISTRATION

Subchapter GG. INSURANCE TAX

34 TAC §3.822

The Comptroller of Public Accounts adopts the repeal of §3.822, concerning collection of taxes, without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12632).

A new §3.822, concerning the basis and reporting of surplus lines premium tax, allocating premium for surplus lines and independently procured premium tax and multiple agent transactions for surplus lines insurance, is being simultaneously proposed in order to provide more specific tax collection information to taxpayers. The substance of the current §3.822 will be incorporated into the new proposal.

No comments were received regarding adoption of the repeal.

This repeal is adopted under the Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2.

The repeal implements the Tax Code, §111.002.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 28, 2001.

TRD-200101204

Martin Cherry

Deputy General Counsel for Tax Policy and Agency Affairs

Comptroller of Public Accounts

Effective date: March 20, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 463-4062


34 TAC §3.822

The Comptroller of Public Accounts adopts new §3.822, concerning the basis and reporting of surplus lines premium tax, the allocation of premium for surplus lines and independently procured premium tax, and multiple agent transactions for surplus lines insurance, without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12633).

The new section provides information on the methods for allocating premium among or between states in a multiple state surplus lines or independently procured policy; it provides details concerning the basis of taxation for surplus lines policies as either premium received or premium written; it provides information on who is responsible for the payment of tax in a multiple agent transaction; and it discusses prepayment requirements for surplus lines taxes. Current §3.822, concerning Collection of Taxes, is being simultaneously repealed. The new section identifies the type of insurance affected and purpose of the rule.

No comments were received regarding adoption of the new section.

This new section is adopted under Tax Code, §111.002, which authorizes the comptroller to prescribe, adopt, and enforce rules relating to the administration and enforcement of Tax Code, Title 2.

The new section implements Insurance Code, Article 1.14-2, §12, and Title 2, §101.252.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 28, 2001.

TRD-200101205

Martin Cherry

Deputy General Counsel for Tax Policy and Agency Affairs

Comptroller of Public Accounts

Effective date: March 20, 2001

Proposal publication date: December 22, 2000

For further information, please call: (512) 463-4062