2007 Legislation
Print Friendly

HOUSE BILL NO. 190 – Dental care/insurance contract/tax


View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status

H0190...............................................by REVENUE AND TAXATION
DENTAL CARE SERVICES - INSURANCE - Amends existing law relating to
insurance to set forth a tax for contracts for dental care services and
dental insurance; and to provide application.
02/13    House intro - 1st rdg - to printing
02/14    Rpt prt - to Rev/Tax
02/16    Rpt out - rec d/p - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 68-0-2
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
      LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
      Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
      Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
      Stevenson, Thayn, Trail, Vander Woude, Wood(27), Wood(35), Mr.
      NAYS -- None
      Absent and excused -- Lake, Wills
    Floor Sponsor - Roberts
    Title apvd - to Senate
02/23    Senate intro - 1st rdg - to Loc Gov
03/02    Rpt out - to 14th Ord
03/07    Rpt out - w/o amen - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/14    3rd rdg - PASSED - 25-10-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Cameron,
      Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Keough, Lodge, McGee, McKague, McKenzie,
      Pearce, Richardson, Schroeder, Siddoway
      NAYS -- Burkett, Coiner, Corder, Kelly, Langhorst, Little, Malepeai,
      Stegner, Stennett, Werk
      Absent and excused -- None
    Floor Sponsor - Cameron
    Title apvd - to House
03/14    To enrol
03/15    Rpt enrol - Sp signed - Pres signed
03/16    To Governor
03/22    Governor signed
         Session Law Chapter 151
         Effective: 07/01/07

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 190
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  4        APPLICATION.
  5    Be It Enacted by the Legislature of the State of Idaho:
  6        SECTION 1.  That Section 41-402, Idaho Code, be, and the  same  is  hereby
  7    amended to read as follows:
  8        41-402.  PREMIUM  TAX.  (1)  Each  authorized  insurer,  and each formerly
  9    authorized insurer with respect to insurance transacted  while  an  authorized
 10    insurer,  shall file with the director on or before the dates in each year set
 11    forth in subsections (3) and (4) of this section, a  statement  (on  forms  as
 12    prescribed  and furnished by the director) under oath for the period set forth
 13    in subsections (3) and (4) of this section, and pay the director a tax at  the
 14    rate set forth in subsection (2) of this section, on the following amounts:
 15        (a)  As to life insurers, the amount of all gross premiums received by the
 16        insurer  on  direct  risks resident in this state, and also, if a domestic
 17        insurer, on direct risks resident in any other jurisdiction  or  jurisdic-
 18        tions  in  which the insurer is not licensed and upon which no premium tax
 19        is otherwise paid or payable, less returned coupons and dividends paid  to
 20        or credited to policyholders.
 21        (b)  As  to  all  insurers  other  than life insurers, the amount of gross
 22        direct premiums written on policies covering subjects of  insurance  resi-
 23        dent, located or performed in this state, and also, if a domestic insurer,
 24        on  such  premiums in any other jurisdiction or jurisdictions in which the
 25        insurer is not licensed and upon which no premium tax is otherwise paid or
 26        payable, less returned premiums, premiums on policies not taken and  divi-
 27        dends paid or credited to policyholders. As to title insurance "gross pre-
 28        mium"  means  the  insurance  risk portion of the amount charged for title
 29        insurance.
 30        (2)  Subject to section  41-403,  Idaho  Code,  as  that  section  applies
 31    through calendar year 2009, the rate of tax shall be as follows:
 32        (a)  As  to  title insurance, the rate of tax shall be one and five-tenths
 33        percent (1.5%).
 34        (b)  As to all other kinds of insurance, the rate of tax shall be:
 35             (i)   For calendar year 2004 and before, two  and  seventy-five  hun-
 36             dredths percent (2.75%);
 37             (ii)  For calendar year 2005, two and five-tenths percent (2.5%);
 38             (iii) For calendar year 2006, two and three-tenths percent (2.3%);
 39             (iv)  For calendar year 2007, two and one-tenth percent (2.1%);
 40             (v)   For calendar year 2008, one and nine-tenths percent (1.9%);
 41             (vi)  For  calendar  year  2009, one and seven-tenths percent (1.7%);
 42             and
 43             (vii) For calendar year 2010 and thereafter, one and five-tenths per-
  1             cent (1.5%).
  2        (3)  (a) Every insurer with a tax obligation under this section shall make
  3        prepayment of the tax obligations for the current  calendar  year's  busi-
  4        ness,  if the sum of the tax obligations for the preceding calendar year's
  5        business is four hundred dollars ($400) or more.
  6        (b)  The director shall credit the prepayments toward the appropriate  tax
  7        obligations of the insurer for the current calendar year.
  8        (c)  The  minimum  amounts  of the prepayments shall be percentages of the
  9        insurer's  tax obligation based on the preceding calendar year's  business
 10        and the current year's rate, and shall be paid to the director's office by
 11        the due dates and in the following amounts:
 12             (i)   On or before June 15, sixty percent (60%);
 13             (ii)  On or before September 15, twenty percent (20%); and
 14             (iii) On or before December 15, fifteen percent (15%).
 15        (4)  On or before March 1, any balance of tax due for the preceding calen-
 16    dar year shall be paid to the director.
 17        (5)  The  effect of transferring policies of insurance from one insurer to
 18    another insurer is to transfer the tax prepayment obligation with  respect  to
 19    the policies.
 20        (6)  This  section  shall  not  apply  as  to any reciprocal insurer doing
 21    exclusively a worker's compensation business and complying with the provisions
 22    of the worker's compensation law of this state and writing worker's  compensa-
 23    tion  only for members under that law, if its representatives or agents or the
 24    attorney in fact executing such contracts are not compensated on a  commission
 25    basis.
 26        (7)  This  section  shall  not  apply as to life insurance policies issued
 27    under pension plans or profit-sharing plans exempt or qualified under  section
 28    401(a), 403, 404, 408 or 501(a) of the United States Internal Revenue Code, as
 29    hereafter amended or renumbered from time to time, nor to annuity contracts in
 30    general.
 31        (8)  This  section  shall not apply to any reciprocal insurer which exclu-
 32    sively insures members who are governmental entities, as  defined  by  section
 33    6-902(1), (2) and (3), Idaho Code.
 34        (9)  Except  as  otherwise provided in this subsection, this section shall
 35    not apply as to any dental care services or as to any dental insurance  autho-
 36    rized  by title 41, Idaho Code. A tax is hereby imposed upon each contract for
 37    dental care services and dental insurance, at the rate of four cents (4¢)  per
 38    contract, per month, such amount to be computed each month. Tax payments shall
 39    be  made  consistent with the documentation requirements and payment dates set
 40    forth in this section. The tax imposed in this subsection shall be in lieu  of
 41    the  premium  tax  provided  in  this  section and in lieu of all other taxes,
 42    licenses and fees as provided by section 41-405, Idaho Code; provided however,
 43    that this subsection shall not apply to entities governed by chapter 34, title
 44    41, Idaho Code.
 45        (10) The amount of tax due for the current year shall be paid in  full  in
 46    the  manner  and  at  the times required in this section without any credit or
 47    offset for refunds or other amounts due or claimed to be due by the insurer.

Statement of Purpose / Fiscal Impact

REPRINT             REPRINT             REPRINT           REPRINT

                       STATEMENT OF PURPOSE

                             RS 16927

The purpose of this legislation is to change the tax rates in
Title 41, Idaho Code, for dental plans and dental insurance so
that all dental coverage carriers will pay the same tax rate to
the State of Idaho.  The current tax rates vary significantly
from a low of $.04 per subscriber contract per month to a high of
2.1% of premium for some companies offering dental plans or
dental insurance.  A single tax rate will be fair for all
competitors selling essentially the same product.  A single tax
rate will make Idaho more competitive in its efforts to attract
insurance carriers to the market and will increase the number of
products available to Idaho residents.  Reducing the cost of
dental insurance will make it more attractive to employers due to
their sensitivity to cost.

                            FISCAL NOTE

DFM estimates the FY2008 fiscal impact of HB190 on the General
Fund to be $240,000.  It should also be noted the diversions for
the High Risk Pool and Access Card will each be reduced by
approximately $112,800.

Name: Representative Ken Roberts 
      Representative Scott Bedke
      Representative Bob Nonini
Phone: 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                          H 190