Notice is hereby given that the Commissioner of Insurance has entered Commissioner's Order No. 99-0654 dated April 30, 1999, which reduced the maintenance tax surcharge from 0.350% adopted on January 7, 1999 to 0.0%.
The amendment is required to reflect the Texas Workers' Compensation Insurance Fund's decision to defease $63.2 million of its outstanding bonded indebtedness from the Fund's accumulated earnings. Therefore, the Fund does not need the funds collected from the maintenance tax surcharge to service its bonded indebtedness. The Comptroller of Public Accounts will refund the payments made by insurance companies writing workers' compensation insurance in Texas pursuant to the previously adopted 1999 workers' compensation insurance maintenance tax surcharge.
With this reduction in the maintenance tax surcharge to 0.0%, there will be no maintenance tax surcharge to pass on to policyholders during the recoupment period beginning June 1, 1999 and ending May 31, 2000. Any premium calculation for a policyholder with a policy effective date during the recoupment period of June 1, 1999 to May 31, 2000 that includes the maintenance tax surcharge either as a line-item charge or in the rate must be amended to delete the pass through of this tax.
Contact the Workers' Compensation Division at 512-322-3495 if you have any questions.
Yours very truly,
Mail Code 105-2A