Insurance companies, both domestic and foreign, are, except fraternal or benevolent companies, subject to taxation by the property tax on their real and personal property; but on account of the need of the definition of their debts and also on account of the requirement of the deposit of securities with the state treasurer, special legislation has been found to be necessary to define what personal property is taxable and what its situs is for taxation.

Interest in this state in the taxation of insurance companies has increased greatly since 1903, when there began the prolific insurance legislation. In 1903 companies for mutual insurance against loss or damage by fire, lightning, and storms were authorized to be chartered, and it was provided that no other tax should be required of such companies than one of one-half of one per cent on all gross premiums.1 Fraternal beneficiary associations, domestic or foreign, are declared to be charitable and benevolent institutions and all their funds and assets, except real estate and office equipment, are exempt from state, county, and municipal taxation.2 Domestic life, accident, and health companies, and domestic co-operative life insurance companies are taxable on their real and personal property less reserve.3

Foreign fire insurance companies must either file a bond or deposit securities, and domestic life, accident, health, fidelity, guaranty, surety, and casualty companies, and domestic mutual fire, storm and lightning companies must deposit securities with the state treasurer as a condition precedent to doing business in the state. But it is specifically provided only in the case of domestic life, accident, and health companies that the situs of all personal property for state, county, and municipal taxation shall be at the home office.4

In 1907 the condition was imposed upon all domestic or foreign stock or mutual life companies to invest not less than 75 per cent of their legal reserve against policies of Texas citizens in Texas securities or Texas real estate.1

1 Laws of 1903, p. 166. 2Laws of 1909, p. 357.

3 Laws of 1909, pp. 192 and 285. Rev. Civil Stats., 1911, arts. 4764 and 4825.

4 Laws of 1909, p. 192. Rev. Civil Stats., 1911, art. 4749.

All insurance companies, except domestic life, fraternal benefit associations, and mutual fire companies are, in addition to the taxes on their real and personal property, subject to an occupation tax on their gross receipts from premiums upon property and persons in this state.2