SECTION 1.414. Assessment of Maintenance Taxes and Fees

(a) Each calendar year by Commissioner order the department will assess rates for maintenance taxes and fees on the gross premiums of insurers for the following lines of insurance:

(1) motor vehicle insurance, under Insurance Code §254.002;

(2) casualty insurance and fidelity, guaranty, and surety bonds, under Insurance Code §253.002;

(3) fire insurance and allied lines, including inland marine, under Insurance Code §252.002;

(4) workers' compensation insurance, under Insurance Code §255.002;

(5) workers' compensation insurance, under Labor Code §403.003;

(6) workers' compensation insurance, under Labor Code §405.003;

(7) workers' compensation insurance, under Labor Code §407A.301;

(8) workers' compensation insurance, under Labor Code §407A.302; and

(9) title insurance, under Insurance Code §271.005.

(b) Each calendar year by Commissioner order the department will assess the rate for the maintenance tax to be assessed on gross premiums of insurers for life, health, and accident insurance and the gross considerations for annuity and endowment contracts, under Insurance Code §257.002.

(c) Each calendar year by Commissioner order the department will assess rates for maintenance taxes for the following entities:

(1) under Insurance Code §258.003, an amount per enrollee for:

(A) single service health maintenance organizations;

(B) multiservice health maintenance organizations; and

(C) limited service health maintenance organizations; and

(2) under Insurance Code §259.003, a rate of the correctly reported gross amount of administrative or service fees for third-party administrators.

(d) Each calendar year by Commissioner order the department will assess a rate for maintenance tax under Labor Code §405.003 for each certified self-insurer, to fund the Workers' Compensation Research and Evaluation Group. The rate will be calculated under Labor Code §407.103(b), and it will be billed to the certified self-insurer by the Division of Workers' Compensation.

(e) Each calendar year by Commissioner order the department will assess a rate for maintenance tax under Labor Code §405.003 and §407A.301 for each workers' compensation self-insurance group, to fund the Workers' Compensation Research and Evaluation Group. The rate will be calculated under Labor Code §407.103(b).

(f) Each calendar year by Commissioner order the department will assess a rate for self-insurer maintenance tax under Labor Code §407.103 and §407.104 for each certified self-insurer. The rate will be calculated under Labor Code §407.103(b), and it will be billed to the certified self-insurer by the Division of Workers' Compensation.

(g) The maintenance tax revenue need is calculated as the amount of revenue needed to reach the targeted year-end fund balance, taking into account the beginning balance, expected non-maintenance tax revenues, and estimated expenditures. For each line of insurance:

(1) the assessment rate is calculated by dividing the revenue need by the estimated premium volume or assessment base; and

(2) if the calculated rate is above the statutory rate, the rate is set at the statutory maximum and any revenue shortfall is spread to the other maintenance tax lines, increasing the revenue need and tax rates for the remaining lines.

(h) The taxes and fees assessed by the Commissioner order issued under subsections (a), (b), (c), and (e) of this section will be payable and due to the Comptroller of Public Accounts on March 1 each year.

Source Note: The provisions of this §1.414 adopted to be effective February 2, 1994, 19 TexReg 346; amended to be effective February 1, 1995, 20 TexReg 283; amended to be effective January 1, 1996, 20 TexReg 10783; amended to be effective January 13, 1997, 22 TexReg 113; amended to be effective February 9, 1998, 23 TexReg 1097; amended to be effective January 27, 1999, 24 TexReg 387; amended to be effective January 3, 2000, 24 TexReg 12068; amended to be effective January 10, 2001, 26 TexReg 201; amended to be effective January 7, 2002, 27 TexReg 184; amended to be effective January 8, 2003, 28 TexReg 74; amended to be effective January20,2004, 29 TexReg 457; amended to be effective January 11, 2005, 30 TexReg 21; amended to be effective February 2, 2006, 31 TexReg 700; amended to be effective February 1, 2012, 37 TexReg 323; amended to be effective January 30, 2013, 38 TexReg 372; amended to be effective January 6, 2014, 39 TexReg 79; amended to be effective January 6, 2015, 40 TexReg 62; amended to be effective January 5, 2016, 41 TexReg 250; amended to be effective January 4, 2017, 41 TexReg 10616; amended to be effective January 3, 2018, 42 TexReg 7710; amended to be effective January 3, 2019, 43 TexReg 8596; amended to be effective January 5, 2020, 45 TexReg 154; amended to be effective December 29, 2020, 45 TexReg 9563