In 1880 life insurance companies were subject to a state occupation tax of $300, payable annually to the comptroller, and to a county tax of $10. The county tax was reduced to $7 in 1882, but was increased to $10 in 1889. In 1893 a tax of l 1/4% on gross premium receipts within the state was enacted. It was made payable to the state treasurer, and the levy of an occupation tax on companies was denied to any count}', city, or town.2 In 1895 a strong effort was made to increase the tax, but the result was to impose an occupation tax of $50 on general agents and one of $7 on local agents of the life companies, and one of $2 on agents of industrial life companies.3 In 1897 the gross receipts tax was increased to 2%, and the tax on local agents was reduced to $5.4 In 1905 there were two enactments, but the later and prevailing one levied a tax of 2 1/4% on gross premium receipts, and provided for a reduction to 1/2 of 1% and 1/4 of 1% should the companies invest as much as one-quarter and one-half of their entire assets in Texas real estate or Texas securities.5 Fraternal insurance orders were exempt. The "Robertson Law" of April 24, 1907, required companies doing a life insurance business in Texas to invest and keep invested in Texas real estate and Texas securities not less than 75% of their legal reserve on account of policies written on the lives of citizens of Texas. In 1907 the gross receipts tax was increased to 3%, but any company complying with the Robertson Law was subject to a tax of only 1%; also if any company should invest as much as 25% of its entire assets in Texas securities or Texas real estate, the tax became 1%, and if it should invest as much as 50%, the rate became 1/2 of 1% on its gross premium receipts.1 Fraternal orders were exempt. Companies which failed to subscribe to the law became subject to a penalty of $5,000 and double the amount of the tax for each year delinquent. This tax was in lieu of all other occupation taxes. In 1907 were repealed the occupation taxes on local and general agents of insurance companies, except industrial life. In 1909 a distinction was made in the methods of taxing domestic and foreign life companies. Domestic life companies, or those incorporated by this state, were relieved of an occupation tax and became taxable only by the property tax, the base of the tax being the value of their real estate and personal property less reserve.2 Foreign insurance companies remained subject to the tax of 3% upon gross premium receipts, and it was provided that if as much as 30% of the total Texas reserves should be invested in Texas real estate securities, the tax should be 2.6%; if as much as 60%, 2.3%; if as much as 75%, 2%. The requirement that at least 75% of the Texas reserves should be invested in Texas real estate or Texas securities remained unchanged.3 This requirement, which was first made in 1907, led to the withdrawal from the state of the leading old line companies, and the merits of the requirement have been hotly debated.4

1 Rev. Civil Stats., 1911, art. 7355, secs. 25, 26, 27.

2 The feeling about this tax as expressed by the Austin correspondent of the Galveston News in the issue of February 18, 1893 was that "it salts the life companies, and they have few enthusiastic friends."

3 Houston Post, March 14, 15, and 21, 1895.

4 The increased rate was urged by the governor; Houston Post, March 24, 1897.

5 Laws of 1905, p. 373.