TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

The Comptroller of Public Accounts adopts an amendment to §3.549, concerning taxable capital: apportionment, without changes to the proposed text as published in the December 22, 2000, issue of the Texas Register (25 TexReg 12627).

In accordance with House Bill 2067, 76th Legislature, 1999, subsection (e)(13)(B) is being amended to provide a new apportionment requirement for dividends and/or interest received by a banking corporation or savings and loan association. The bill repealed §171.1031, which apportioned dividends and interest to the commercial domicile of the bank or savings and loan association. The legislation states that this new apportionment requirement applies to reports originally due on or after January 1, 2000.

Subsection (b)(9) is being added to provide a definition of "employee retirement plan."

Language is being added to subsections (c) and (e)(38) to provide reference to the Tax Code's requirements for apportioning services to qualified employee retirement plans in accordance with prior legislation.

Subsection (e)(28) is being amended to add magazines to the provision addressing advertising revenues and to clarify that all other receipts of newspapers and magazines must be apportioned in accordance with the apportionment rules set out in the section.

Subsections (b)(6), (c), (e)(1), (e)(21), (e)(22), (e)(26), (e)(27), (e)(28), (e)(30), (e)(31), (e)(38), (e)(40), and (e)(47) are being amended for clarification purposes.

No comments were received regarding adoption of the amendment.

This amendment is adopted under 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 Tax Code, Title 2.

The amendment implements Tax Code, §171.103.

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 13, 2001.

TRD-200100906

Martin Cherry

Deputy General Counsel for Tax Policy and Agency Affairs

Comptroller of Public Accounts

Effective date: March 5, 2001

Proposal publication date: December 22, 2000

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

Subchapter GG. INSURANCE TAX

34 TAC §3.823

The Comptroller of Public Accounts adopts the repeal of §3.823, concerning surplus lines insurance premium tax trust funds, without changes to the proposed text as published in the November 3, 2000, issue of the Texas Register (25 TexReg 10883).

The section is being repealed because the current statute eliminates the requirement for maintaining a separate bank account for the deposit and payment of surplus lines premium tax. The current statutory provisions state that surplus lines taxes are trust funds in the hands of the agent and agents must make prepayments of taxes by the 15th day of the month following the month in which accrued taxes meet $70,000.

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 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 13, 2001.

TRD-200100907

Martin Cherry

Deputy General Counsel for Tax Policy and Agency Affairs

Comptroller of Public Accounts

Effective date: March 5, 2001

Proposal publication date: November 3, 2000

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

34 TAC §3.832

The Comptroller of Public Accounts adopts an amendment to §3.832, concerning the assessment for the Office of Public Insurance Counsel (OPIC) under Insurance Code, Article 1.35B, without changes to the proposed text as published in the November 3, 2000, issue of the Texas Register (25 TexReg 10885).

The amendment changes the assessment for life, health, and accident insurers and health maintenance organizations from $.03 per policy or certificate of coverage to $.057 per policy in compliance with statutory changes and revises the interest calculations under the Tax Code, Title 2.

No comments were received regarding adoption of the amendment.

This amendment 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 amendment implements the Insurance Code, Article 1.35B.

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 13, 2001.

TRD-200100908

Martin Cherry

Deputy General Counsel for Tax Policy and Agency Affairs

Comptroller of Public Accounts

Effective date: March 5, 2001

Proposal publication date: November 3, 2000

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