Q. We have an insured that is a 501-C non-profit organization that is tax exempt for sales taxes. Are they exempt from the surplus lines tax on their policy?
A. No, they are not exempt. The Texas Comptroller of Public Accounts website states each Texas tax has its own exemptions. An exemption from one tax does not necessarily extend to other taxes. There is no exemption from surplus lines tax for policies issued to non-profit organizations.