Sign In
Events
Newsletters
Search

Close

Close Search

SEARCH
MY LAW.COMNEW

Texas Workers' Compensation Insurance Facility v. Comptroller of Public Accounts

The Texas Workers' Compensation Insurance Facility's role in reimbursing its servicing companies does not convert the facility into a taxpayer.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Appellant Texas Workers’ Compensation Insurance Facility (the Facility) seeks a refund of roughly $24,000,000 from the Comptroller for taxes it claims it paid. The tax at issue is the maintenance tax surcharge paid by insurance companies that write workers’ compensation insurance policies. See Tex. Ins. Code Ann. art. 5.76-5, � 10(a)(1) (West Supp. 2002). Although the Facility was an association of workers’ compensation insurance companies, it was not an insurance company itself and thus was not subject to the tax. See id. � 10(a). It was, however, required to reimburse its member companies for the taxes they paid. See 28 Tex. Admin. Code � 1.411 (1993) (repealed) (“Rule 1.411″). *fn2 The Facility asserts that it is entitled to a refund because: (1) it effectively paid the tax by reimbursing the member companies even though it was not subject to the tax; and (2) the Department of Insurance exceeded its authority by adopting Rule 1.411, which required the Facility to reimburse the companies for the tax when the Facility was not itself subject to the tax under article 5.76-5, section 10(a). See Tex. Ins. Code Ann. art. 5.76-5, � 10(a) (West Supp. 2002).

We hold that: (1) the member insurance companies, not the Facility, paid the tax; (2) Rule 1.411 is valid and the Facility’s reimbursement obligation was a lawful component of the legislative scheme under which the Facility operated; (3) the Facility’s role in reimbursing its servicing companies does not convert the Facility into a taxpayer; and (4) the Facility has not met the statutory prerequisite for a tax refund. We therefore reject the Facility’s claim for a tax refund and affirm the judgment of the trial court.

The Involuntary Market

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center

Pennsylvania Legal Awards (PALA) 2023

June 14, 2023
Philadelphia, PA

The Legal Intelligencer honors lawyers leaving a mark on the legal community in Pennsylvania with their dedication to law.


Learn More

Consulting Top Consultants 2023

June 15, 2023
New York, NY

Consulting Magazine identifies consultants that have the biggest impact on their clients, firms and the profession.


Learn More

Southeastern Legal Awards (SLA) 2023

June 22, 2023
Atlanta, GA

The Daily Report is honoring those attorneys and judges who have made a remarkable difference in the legal profession.


Learn More
Go to Events Go to Webcasts

PARALEGAL - NEW YORK


Auto defense counsel seeking paralegal for discovery demands and responses as well as other legal documents. Salary range 50k to 65k depend...


Apply Now ›

NO - FAULT PARALEGAL - NEW YORK


Needed to assist in drafting, preparing and filing legal docs through NYSCEF in accordance with attorney instructions. An associate degree, ...


Apply Now ›

Litigator (Of-Counsel) - New York


Civil/Commercial Litigator (of-counsel) in Nassau or Queens county earnestly sought. Office located at Station Plaza (Great Neck) (2 mins w...


Apply Now ›
Go to Lawjobs

SCHIRMER LAW LLC

06/09/2023
DBR Web

SCHIRMER LAW LLC Celebrating 7 years of Excellent Service


View Announcement ›

POND LEHOCKY STERN GIORDANO

06/06/2023
TLI Web

Pond Lehocky Giordano LLP would like to announce that....


View Announcement ›

HARTMANN DOHERTY ROSA BERMAN & BULBULIA LLC

06/05/2023
NJLJ Web

HARTMANN DOHERTY ROSA BERMAN & BULBULIA LLC's Matrimonial & Family Practice Warmly Welcomes the Honorable Peter J. Melchionne (Ret.) to Lead its New Family Law Dispute Resolution Team.


View Announcement ›
Go to Professional Announcements

Legal Newswire

Winning Strategies: Anna Osipov’s Journey to Establishing Osipov Legal Group L...
IMS Consulting & Expert Services Acquires Nationally Recognized Tsongas Litigati...
CHAMBERS USA 2023 RANKS SOUTHBANK LEGAL AMONG THE TOP BANDS FOR COMMERCIAL LITI...
CHAMBERS USA 2023 RANKS IFRAH LAW AND FIRM PARTNERS AMONG THE TOP BANDS FOR GAMI...
Submit a press release