Texas Statutes
Subchapter B. Exemptions
Section 171.052. Certain Corporations

Sec. 171.052. CERTAIN CORPORATIONS. (a) Except as provided by Subsection (c), an insurance organization, title insurance company, or title insurance agent authorized to engage in insurance business in this state that is required to pay an annual tax measured by its gross premium receipts is exempted from the franchise tax. A nonadmitted insurance organization that is required to pay a gross premium receipts tax during a tax year is exempted from the franchise tax for that same tax year. A nonadmitted insurance organization that is subject to an occupation tax or any other tax that is imposed for the privilege of doing business in another state or a foreign jurisdiction, including a tax on gross premium receipts, is exempted from the franchise tax.
(b) Farm mutuals, local mutual aid associations, and burial associations are not subject to the franchise tax.
(c) An entity is subject to the franchise tax for a tax year in any portion of which the entity is in violation of an order issued by the Texas Department of Insurance under Section 2254.003(b), Insurance Code, that is final after appeal or that is no longer subject to appeal.
Acts 1981, 67th Leg., p. 1693, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1985, 69th Leg., ch. 30, Sec. 1, eff. Aug. 26, 1985; Acts 1993, 73rd Leg., ch. 546, Sec. 2, eff. Jan. 1, 1994; Acts 2001, 77th Leg., ch. 1275, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 209, Sec. 33, eff. Oct. 1, 2003.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 1 (H.B. 3), Sec. 3, eff. January 1, 2008.
Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 5, eff. June 14, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 4, eff. January 1, 2014.
Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 16.003, eff. September 1, 2015.

Structure Texas Statutes

Texas Statutes

Tax Code

Title 2 - State Taxation

Subtitle F - Franchise Tax

Chapter 171 - Franchise Tax

Subchapter B. Exemptions

Section 171.051. Application for Exemption; Effective Date

Section 171.052. Certain Corporations

Section 171.0525. Exemption--Certain Insurance Companies

Section 171.053. Exemption--Railway Terminal Corporation

Section 171.055. Exemption--Open-End Investment Company

Section 171.056. Exemption--Corporation With Business Interest in Solar Energy Devices

Section 171.057. Exemption--Nonprofit Corporation Organized to Promote County, City, or Another Area

Section 171.058. Exemption--Nonprofit Corporation Organized for Religious Purposes

Section 171.059. Exemption--Nonprofit Corporation Organized to Provide Burial Places

Section 171.060. Exemption--Nonprofit Corporation Organized for Agricultural Purposes

Section 171.061. Exemption--Nonprofit Corporation Organized for Educational Purposes

Section 171.062. Exemption--Nonprofit Corporation Organized for Public Charity

Section 171.063. Exemption-Nonprofit Corporation Exempt From Federal Income Tax

Section 171.064. Exemption--Nonprofit Corporation Organized for Conservation Purposes

Section 171.065. Exemption--Nonprofit Corporation Organized to Provide Water Supply or Sewer Services

Section 171.066. Exemption--Nonprofit Corporation Involved With City Natural Gas Facility

Section 171.067. Exemption--Nonprofit Corporation Organized to Provide Convalescent Homes for Elderly

Section 171.068. Exemption--Nonprofit Corporation Organized to Provide Cooperative Housing

Section 171.069. Exemption--Marketing Associations

Section 171.070. Exemption--Lodges

Section 171.071. Exemption--Farmers' Cooperative Society

Section 171.072. Exemption--Housing Finance Corporation

Section 171.073. Exemption--Hospital Laundry Cooperative Association

Section 171.074. Exemption--Development Corporation

Section 171.075. Exemption--Cooperative Association

Section 171.076. Exemption--Cooperative Credit Association

Section 171.077. Exemption--Credit Union

Section 171.079. Exemption--Electric Cooperative Corporation

Section 171.080. Exemption--Telephone Cooperative Corporations

Section 171.081. Exemption--Corporation Exempt by Another Law

Section 171.082. Exemption--Certain Homeowners' Associations

Section 171.083. Exemption--Emergency Medical Service Corporation

Section 171.084. Exemption--Certain Trade Show Participants

Section 171.085. Exemption; Recycling Operation

Section 171.086. Exemption: Political Subdivision Corporation

Section 171.087. Exemption--Nonprofit Corporation Organized for Student Loan Funds or Student Scholarship Purposes

Section 171.088. Exemption--Noncorporate Entity Eligible for Certain Exemptions