TWCC Sets Maintenance Tax Rate

The Texas Workers’ Compensation Commission reported it has determined, pursuant to the authority and direction given under the Texas Workers’ Compensation Act (Texas Labor Code, Section 403.003), that the maintenance tax rate be set at 0.92 percent of the gross premiums collected Jan. 1, 2004 through Dec. 31, 2004.

This maintenance tax rate is for support of the Commission and only applies to insurance companies writing workers’ compensation policies in Texas. Section 403.002 of the Act caps the maintenance tax rate at 2 percent of gross premiums collected by insurance companies. The previous tax rate was set at 1.125 percent of gross premiums.

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