I have been treasurer of the San Antonio Prop Busters, Inc. for 9 years. Each year the State of Texas sends the corporation's registered agent, which has been the club treasurer, Franchise tax forms. Those forms are filled out and returned to maintain the incorporated status with the state.
This year there was a new form in the package titled "Texas Annual Insurance Tax Report". I had never seen it before so I read it carefully to figure out what to do with it. After some on-line research, it appeared that my club was going to owe the state some money and I had no idea how much. So I started calling for help.
A few calls to Muncie stumbled across folks not available and yielded no answers, so I called Doug Holland. He started the ball rolling to find out as his thought was that we did not need to pay the insurance premium taxes. Last week there were several calls from different folks trying to get a handle on the issue and I know the insurance broker was going to call the State to get a ruling on the status of the AMA insurance carrier as per the new form.
This morning Doug Holland called me and told me what to do. It follows:
In the middle of the form where it says "Premium Tax Calculation" the Total Texas premiums (number 1 on the form) are where you are to put the result of multiplying your number of members by $10 each. If you have 100 members the total entered will be $1,000.
Multiply line 1 result by line 2 and enter the result in line 3. That is the total your club will owe the state.
Please pass the word to any and all clubs you know of that are incorporated in the State of Texas.
Jim Branaum
AMA Leader Member 1428