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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 report10 in addition to the statement required under section 41-3425, Idaho Code, (on11 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, in13 effect during the preceding year. A tax is hereby imposed upon each such14 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 imposed16 hereby shall be due and payable by each service corporation to the director17 annually on or before the first day of March of the succeeding yearpay 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 tax21 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 or30 pay the tax required under subsection (1) of this sectionon 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 be35 instituted by the attorney general in the name of the state in any court of36 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 taxesfee and fine, if any, are fully paid.
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. Contacts Representative Bob Nonini 332-1074 Senator Joe Stegner 332-1308 STATEMENT OF PURPOSE/FISCAL NOTE H 276