Print Friendly HOUSE BILL NO. 276 – Insurers, certain, reports/tax
HOUSE BILL NO. 276
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H0276...............................................by REVENUE AND TAXATION
INSURANCE - Amends existing law relating to insurance to remove a reference
to annual reports and to revise provisions applicable to premium taxes and
fees paid by service corporations.
02/28 House intro - 1st rdg - to printing
03/01 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 276
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE; AMENDING SECTION 41-3427, IDAHO CODE, TO REMOVE A REF-
3 ERENCE TO ANNUAL REPORTS AND TO REVISE PROVISIONS APPLICABLE TO PREMIUM
4 TAXES AND FEES PAID BY SERVICE CORPORATIONS.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 41-3427, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 41-3427. TAXATION. AND ANNUAL REPORT. (1) Each service corporation shall
9 annually on or before the first day of March, file with the director a report
10 in addition to the statement required under section 41-3425, Idaho Code, (on
11 forms as approved by the director) under oath, showing the number of sub-
12 scribers' contracts, as defined under section 41-3403(6), Idaho Code, in
13 effect during the preceding year. A tax is hereby imposed upon each such
14 subscriber's contract, at the rate of four cents ($.04) per subscriber's con-
15 tract, per month, such amount to be computed each month. The tax imposed
16 hereby shall be due and payable by each service corporation to the director
17 annually on or before the first day of March of the succeeding year pay a pre-
18 mium tax as provided in section 41-402, Idaho Code, and shall be deemed to be
19 an "insurer" for purposes thereof.
20 The tax imposed hereby shall be in lieu of and in place of the premium tax
21 provided in section 41-402, Idaho Code, and eExcept as to the tax imposed
22 hereby, and as to the fees provided for in section 41-3433, Idaho Code, the
23 subscription income, funds and assets of every service corporation are exempt
24 from all state, county and municipal taxes, other than payroll taxes and taxes
25 on real estate and office furniture and equipment.
26 The director shall transmit and account for all taxes received by him
27 hereunder as provided in section 41-3433, Idaho Code.
28 (2) Any service corporation failing to render the annual statement or pay
29 the fee required by section 41-3425, Idaho Code, or to render the report or
30 pay the tax required under subsection (1) of this section on or before the
31 date due or within any extension of time thereof, not to exceed thirty (30)
32 days, which the director for good cause may have granted, shall be liable to a
33 fine of twenty-five dollars ($25.00) for each additional day of delinquency ;
34 and the taxes shall be collected by distraint and recovered by an action to be
35 instituted by the attorney general in the name of the state in any court of
36 competent jurisdiction. The director shall suspend or revoke the certificate
37 of authority of the delinquent service corporation until the statement is
38 filed and the taxes fee and fine, if any, are fully paid.
STATEMENT OF PURPOSE
The purpose of this legislation is to change the tax on, Title
41, Chapter 34, Idaho Code, companies to be consistent with the
premium tax structure adopted as part of HB 724 in the 2004
Legislative Session. Unlike premium taxes assessed pursuant to
Idaho Code Section 41-402, the current method of taxation based
on $.04 cents per subscriber contract per month in Chapter 34 has
not been adjusted for health care inflation rates since 1982. A
single premium tax rate should make Idaho more competitive in its
efforts to attract insurance carriers to locate in Idaho as its
"home" or "domiciliary" state. The change to a single premium
tax rate for all dental insurance carriers will also eliminate
legal and financial exposure to the State created by the dual
Projections utilizing 2003 premium numbers provided by the Idaho
Department of Insurance indicate that there would be a benefit to
the General Fund of approximately $400,000 in the next year.
Representative Bob Nonini 332-1074
Senator Joe Stegner 332-1308
STATEMENT OF PURPOSE/FISCAL NOTE H 276