First reading of insurance tax held
by Nola Sizemore Staff Writer
Holding first reading of the city’s ordinance imposing an insurance premium tax, members of Loyall City Council proposed the license fee for each insurance company doing business in the city be set at 9.2 percent.
Categories include casualty, automobile, inland marine, fire and allied perils, health and life.
The ordinance states, “The license fee imposed upon each insurance company, which issues like insurance policies on the lives of persons residing within the corporate limits of the city shall be 9.2 percent for the first year’s premiums actually collected within each calendar quarter by reason of the insurances of those policies. The license fee imposed upon each insurance company, which issued any insurance policy, which is not a life insurance policy shall be 9.2 percent of the premiums actually collected within each calendar quarter by reason of the issuance of those policies on risks located with the corporate limits of the city on those classes of business which that company is authorized to transact, less all premiums returned to policy holders. However, any license fee or tax imposed upon premium receipts shall not include premiums received on policies of group health insurance provided for state employees under KRS 18A.225 (2).”
It further states “License fees imposed shall be due no later than 30 days after the end of each calendar quarter. License fees not paid on or before the due date shall bear interest at the tax interest rate defined in KRS 131.010 (6).
The ordinance went on to say, “every insurance company subject to the license fees imposed shall annually, by March 31, furnish the city with a written breakdown of all collections in the preceding calendar year…”
Reach Nola Sizemore at 606-573-4510, ext. 115, email@example.com
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