Motor Vehicle Crime Prevention Authority Fee

Every form of insurance on any automobile, or other type of vehicle listed, and its operating equipment or necessitated by reason of the liability imposed by law for damages arising out of the ownership, operation, maintenance or use in this state of the following, including: any automobile; tractor; motorcycle; autocycle; traction engine; motorbicycle; any self-propelled vehicle; truck; truck-tractor; or any vehicle trailer or semi-trailer pulled or towed by a motor vehicle.

The following are excluded from consideration of the fee:

• motor vehicles running only on fixed rails or tracks
• policies providing mechanical breakdown coverage
• garage liability policies
• nonresident policies
• policies providing only non-ownership or hired auto coverages.

"Motor vehicle years of insurance" means the total number of years or portions of years during which a motor vehicle is covered by insurance consistent with 43 TAC 57.48. The fee is equal to the number of motor vehicle years of insurance multiplied by $5.

Senate Bill 224, 88th Legislature, increased the Motor Vehicle Crime Prevention Authority (MVCPA) fee from $4 to $5 per motor vehicle for insurance policies delivered, issued for delivery or renewed on or after May 29, 2023 (the effective date of the bill). This effective date resulted in a split period for the first 2023 Insurance Motor Vehicle Crime Prevention Authority Semiannual Fee Report, which was due Aug. 1, 2023.

Please note:

• Policy cancellations for any reason have no effect on the fee amount due for the vehicles covered by such policies.
• Once a policy is delivered, issued for delivery or renewed during each semiannual period, the fee accrues based on the total motor vehicle years in effect at that time.
• If a policy is written and later cancelled, the MVCPA fee is due.
• A flat cancellation of an insurance policy means that no insurance coverage was provided; therefore, no MVCPA fee is due.
• Endorsements adding vehicles accrue "motor vehicle years" in the year of the endorsement.
• Endorsements deleting vehicles are treated in the same manner as a cancellation.
• If a vehicle is removed from a policy by endorsement, the full MVCPA fee is still due.
• Vehicles substituted on existing policies by endorsement, if substituted concurrently, are subject to additional fees.
• Policies delivered, issued for delivery or renewed with an effective period that extends into the next period or year, will be counted 100 percent in the period or year of issue.

Total Number of Motor Vehicle Years for the Period January 1 through June 30: Use whole numbers only.

Total Number of Motor Vehicle Years for the Period July 1 through December31: Use whole numbers only.

Insurers may recoup this fee from policyholders as authorized by 28 TAC, Rule §5.205.

The Comptroller's office does not have the authority to grant a refund. Taxpayers have four years from the date a fee payment was due in which to file a refund request.

In the case of an overpayment, taxpayers must submit an amended report, along with all supporting documentation, directly to the Authority at the following address:

Refer to TAC Rule §57.51 and our Publication 96-667, Motor Vehicle Crime Prevention Authority Fee for additional information.