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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.
Speaker
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
]]]] 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
2 RELATING TO INSURANCE; AMENDING SECTION 41-402, IDAHO CODE, TO SET FORTH A TAX
3 FOR CONTRACTS FOR DENTAL CARE SERVICES AND DENTAL INSURANCE AND TO PROVIDE
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-
2
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.
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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.
Contact
Name: Representative Ken Roberts
Representative Scott Bedke
Representative Bob Nonini
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 190