FEES AND TAXES
41-402. Premium tax. (1) Each authorized insurer, and each formerly authorized insurer with respect to insurance transacted while an authorized insurer, shall file with the director, on or before the dates in each year set forth in subsections (3) and (4) of this section, a statement (on forms as prescribed and furnished by the director) under oath, for the period set forth in subsections (3) and (4) of this section, and pay the director a tax at the rate set forth in subsection (2) of this section, on the following amounts:
(a) As to life insurers, the amount of all gross premiums received by the insurer on direct risks resident in this state, and also, if a domestic insurer, on direct risks resident in any other jurisdiction or jurisdictions in which the insurer is not licensed and upon which no premium tax is otherwise paid or payable, less returned coupons and dividends paid to or credited to policyholders.
(b) As to all insurers other than life insurers, the amount of gross direct premiums written on policies covering subjects of insurance resident, located or performed in this state, and also, if a domestic insurer, on such premiums in any other jurisdiction or jurisdictions in which the insurer is not licensed and upon which no premium tax is otherwise paid or payable, less returned premiums, premiums on policies not taken and dividends paid or credited to policyholders. As to title insurance, "gross premium" means the insurance risk portion of the amount charged for title insurance.
(2) Subject to section 41-403, Idaho Code, as that section applies through calendar year 2009, the rate of tax shall be as follows:
(a) As to title insurance, the rate of tax shall be one and five-tenths percent (1.5%).
(b) As to all other kinds of insurance, the rate of tax shall be:
(i) For calendar year 2004 and before, two and seventy-five hundredths percent (2.75%);
(ii) For calendar year 2005, two and five-tenths percent (2.5%);
(iii) For calendar year 2006, two and three-tenths percent (2.3%);
(iv) For calendar year 2007, two and one-tenth percent (2.1%);
(v) For calendar year 2008, one and nine-tenths percent (1.9%);
(vi) For calendar year 2009, one and seven-tenths percent (1.7%); and
(vii) For calendar year 2010 and thereafter, one and five-tenths percent (1.5%).
(3) (a) Every insurer with a tax obligation under this section shall make prepayment of the tax obligations for the current calendar year’s business if the sum of the tax obligations for the preceding calendar year’s business is four hundred dollars ($400) or more.
(b) The director shall credit the prepayments toward the appropriate tax obligations of the insurer for the current calendar year.
(c) The minimum amounts of the prepayments shall be percentages of the insurer’s tax obligation based on the preceding calendar year’s business and the current year’s rate and shall be paid to the director’s office by the due dates and in the following amounts:
(i) On or before June 15, sixty percent (60%);
(ii) On or before September 15, twenty percent (20%); and
(iii) On or before December 15, fifteen percent (15%).
(4) On or before March 1, any balance of tax due for the preceding calendar year shall be paid to the director.
(5) The effect of transferring policies of insurance from one insurer to another insurer is to transfer the tax prepayment obligation with respect to the policies.
(6) This section shall not apply as to any reciprocal insurer doing exclusively a worker’s compensation business and complying with the provisions of the worker’s compensation law of this state and writing worker’s compensation only for members under that law, if its representatives or agents or the attorney in fact executing such contracts are not compensated on a commission basis.
(7) This section shall not apply as to life insurance policies issued under pension plans or profit-sharing plans exempt or qualified under section 401(a), 403, 404, 408 or 501(a) of the Internal Revenue Code, as hereafter amended or renumbered from time to time, nor to annuity contracts in general.
(8) This section shall not apply to any reciprocal insurer that exclusively insures members who are governmental entities, as defined by section 6-902(1), (2) and (3), Idaho Code.
(9) Except as otherwise provided in this subsection, this section shall not apply as to any dental care services or as to any dental insurance authorized by title 41, Idaho Code. A tax is hereby imposed upon each contract for dental care services and dental insurance at the rate of four cents (4¢) per contract, per month, such amount to be computed each month. Tax payments shall be made consistent with the documentation requirements and payment dates set forth in this section. The tax imposed in this subsection shall be in lieu of the premium tax provided in this section and in lieu of all other taxes, licenses and fees as provided by section 41-405, Idaho Code; provided however, that this subsection shall not apply to entities governed by chapter 34, title 41, Idaho Code.
(10) The amount of tax due for the current year shall be paid in full in the manner and at the times required in this section without any credit or offset for refunds or other amounts due or claimed to be due by the insurer.
(11) An insurer shall round to the nearest whole dollar any amount shown or required to be shown on any return, form, statement, or other document submitted to the director. Any record or other document prepared or maintained by the director shall express any dollar amount rounded to the nearest whole dollar.
[41-402, added 1977, ch. 303, sec. 2, p. 849; am. 1979, ch. 318, sec. 1, p. 854; am. 1982, ch. 352, sec. 1, p. 872; am. 1983, ch. 4, sec. 12, p. 12; am. 1987, ch. 340, sec. 1, p. 720; am. 1988, ch. 366, sec. 1, p. 1077; am. 1994, ch. 383, sec. 1, p. 1229; am. 2001, ch. 111, sec. 1, p. 400; am. 2004, ch. 356, sec. 1, p. 1063; am. 2007, ch. 151, sec. 1, p. 461; am. 2019, ch. 45, sec. 1, p. 124.]