State Tax Day - Current, S.9, Texas—Insurance Tax: Insurance Tax Frequently Asked Questions, (Nov 4, 2025)

Texas revised its list of frequently asked questions (FAQs) on insurance premium taxes. The FAQs were revised to:

• update dates and figures for Volunteer Fire Department Assessment and MVCPA fees;

• add historical context for and otherwise clarify CAPCO credits;

• expand guidance for surplus lines, NRRA, and independently procured taxes;

• clarify title insurance premium tax/retaliatory tax calculations; and

• provide more precise instructions for captive insurance companies prepayments.

In general, the FAQs, among other topics, cover:

• credits available to licensed companies against their insurance premium taxes and their authority to transfer guaranty association assessment credits to other companies;

• licensed captive insurance companies’ insurance premium and maintenance tax reporting responsibilities;

• methods to file and pay surplus lines taxes and policies exempt from surplus lines tax;

• types of insurance that are subject to a 4.85% independently procured insurance tax; and

• unauthorized insurance premium tax and its filing and payment requirements.

Letter No. 202510001W, Texas Comptroller of Public Accounts, October 29, 2025, ¶405-135