2005 Legislation
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HOUSE BILL NO. 276 – Insurers, certain, reports/tax


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Bill Status

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

Bill Text

  ]]]]              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
  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 / Fiscal Impact

                    STATEMENT  OF  PURPOSE

                           RS 15024

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
rate system.  

                         FISCAL  IMPACT

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