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H0201...............................................by REVENUE AND TAXATION
INSURANCE - PREMIUM TAX - Amends existing law relating to insurance premium
tax to remove the term "domestic" from the exemption relating to insurers
doing exclusively worker's compensation business and from the exemption
relating to insurers which exclusively insure governmental entities.
02/09 House intro - 1st rdg - to printing
02/12 Rpt prt - to Rev/Tax
02/23 Rpt out - rec d/p - to 2nd rdg
02/26 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 65-0-5
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow,
Cuddy, Deal, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck,
Jaquet, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
Sellman, Shepherd, Smith, Smylie, Stevenson, Tilman, Trail, Wheeler,
Wood, Young, Mr. Speaker
NAYS -- None
Absent and excused -- Denney, Jones, Schaefer, Stone, Swan
Floor Sponsor -- Cuddy
Title apvd - to Senate
02/28 Senate intro - 1st rdg - to Loc Gov
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Branch(Bartlett), Boatright, Brandt, Bunderson,
Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough,
King-Barrutia, Lee, Lodge, Noh, Richardson, Risch, Sandy, Schroeder,
Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth
NAYS -- None
Absent and excused -- Williams
Floor Sponsor -- Thorne
Title apvd - to House
03/19 To enrol
03/20 Rpt enrol - Sp signed
03/21 Pres signed - to Governor
03/22 Governor signed
Session Law Chapter 111
Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 201
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE INSURANCE PREMIUM TAX; AMENDING SECTION 41-402, IDAHO CODE, TO
3 REMOVE THE TERM "DOMESTIC" FROM THE EXEMPTION RELATING TO INSURERS DOING
4 EXCLUSIVELY WORKER'S COMPENSATION BUSINESS, TO REMOVE THE TERM "DOMESTIC"
5 FROM THE EXEMPTION RELATING TO INSURERS WHICH EXCLUSIVELY INSURE GOVERN-
6 MENTAL ENTITIES AND TO MAKE TECHNICAL CORRECTIONS.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 41-402, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 41-402. PREMIUM TAX. (1) Each authorized insurer, and each formerly
11 authorized insurer with respect to insurance transacted while an authorized
12 insurer, shall file with the director on or before the dates in each year set
13 forth in subsections (3) and (4) of this section, a statement (on forms as
14 prescribed and furnished by the director) under oath for the period set forth
15 in subsections (3) and (4) of this section, and pay the director a tax at the
16 rate set forth in subsection (2) of this section, on the following amounts:
17 (a) As to life insurers, the amount of all gross premiums received by the
18 insurer on direct risks resident in this state, and also, if a domestic
19 insurer, on direct risks resident in any other jurisdiction or jurisdic-
20 tions in which the insurer is not licensed and upon which no premium tax
21 is otherwise paid or payable, less returned coupons and dividends paid to
22 or credited to policyholders.
23 (b) As to all insurers other than life insurers, the amount of gross
24 direct premiums written on policies covering subjects of insurance resi-
25 dent, located or performed in this state, and also, if a domestic insurer,
26 on such premiums in any other jurisdiction or jurisdictions in which the
27 insurer is not licensed and upon which no premium tax is otherwise paid or
28 payable, less returned premiums, premiums on policies not taken and divi-
29 dends paid or credited to policyholders. As to title insurance "gross pre-
30 mium" means the insurance risk portion of the amount charged for title
31 insurance.
32 (2) Subject to section 41-403, Idaho Code, the rate of tax shall be as
33 follows:
34 (a) As to title insurance, the rate of tax shall be one and five-tenths
35 per cent percent (1.5%).
36 (b) As to all other kinds of insurance, the rate of tax shall be two and
37 seventy-five hundredths per cent percent (2.75%).
38 (3) (a) Every insurer with a tax obligation under this section shall make
39 prepayment of the tax obligations for the current calendar year's busi-
40 ness, if the sum of the tax obligations for the preceding calendar year's
41 business is four hundred dollars ($400) or more.
42 (b) The director shall credit the prepayments toward the appropriate tax
43 obligations of the insurer for the current calendar year.
2
1 (c) The minimum amounts of the prepayments shall be percentages of the
2 insurer's tax obligation based on the preceding calendar year's business
3 and the current year's rate, and shall be paid to the director's office by
4 the due dates and in the following amounts:
5 (i) On or before June 15, sixty per cent percent (60%);
6 (ii) On or before September 15, twenty per cent percent (20%); and
7 (iii) On or before December 15, fifteen per cent percent (15%).
8 (4) On or before March 1, any balance of tax due for the preceding calen-
9 dar year shall be paid to the director.
10 (5) The effect of transferring policies of insurance from one insurer to
11 another insurer is to transfer the tax prepayment obligation with respect to
12 the policies.
13 (6) This section shall not apply as to any domestic reciprocal insurer
14 doing exclusively a workmen's worker's compensation business and complying
15 with the provisions of the workmen's worker's compensation law of this state
16 and writing workmen's worker's compensation only for members under that law,
17 if its representatives or agents or the attorney in fact executing such con-
18 tracts are not compensated on a commission basis.
19 (7) This section shall not apply as to life insurance policies issued
20 under pension plans or profit-sharing plans exempt or qualified under sections
21 401(a), 403, 404, 408, or 501(a) of the United States iInternal rRevenue
22 cCode, as hereafter amended or renumbered from time to time, nor to annuity
23 contracts in general.
24 (8) This section shall not apply to any domestic reciprocal insurer which
25 exclusively insures members who are governmental entities, as defined by sec-
26 tion 6-902(1), (2) and (3), Idaho Code.
27 (9) The amount of tax due for the current year shall be paid in full in
28 the manner and at the times required in this section without any credit or
29 offset for refunds or other amounts due or claimed to be due by the insurer.
STATEMENT OF PURPOSE
RS 10925
This proposal will clarify application of the premium tax. The
proposed legislation will remove the term "domestic" from the
exemption relating to insurers doing exclusively workers compensation
business and it will remove the term "domestic" from the exemption
relating to insurers which exclusively insure governmental entities.
FISCAL IMPACT
There should be no fiscal impact resulting from this proposed
legislation.
CONTACT:
Name: Woody Richards
Organization: Associated Loggers Exchange and Workers Compensation
Exchange
Phone: 385-5451
STATEMENT OF PURPOSE/FISCAL IMPACT H 20