2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 518 - COUNTY MUTUAL INSURANCE ASSOCIATIONS
518.18 - PREMIUM TAX.

        518.18  PREMIUM TAX.
         After January 1, 1966, every association doing business under this
      chapter shall be required to pay to the director of the department of
      revenue, or a depository designated by the director, as taxes an
      amount equal to the following:
         1.  The applicable percent of the gross amount of premiums
      received during the preceding calendar year, after deducting the
      amount returned upon the canceled policies, certificates, and
      rejected applications; and after deducting premiums paid for
      windstorm or hail reinsurance on properties specifically reinsured.
      However, the reinsurer of such windstorm or hail risks shall pay the
      applicable percent of the gross amount of reinsurance premiums
      received upon such risks after deducting the amounts returned upon
      canceled policies, certificates, and rejected applications.  For
      purposes of this section, "applicable percent" means the same as
      specified in section 432.1, subsection 4.
         2.  Except as provided in subsection 3, the premium tax shall be
      paid on or before March 1 of the year following the calendar year for
      which the tax is due.  The commissioner of insurance may suspend the
      certificate of authority of a county mutual insurance association
      that fails to pay its premium tax on or before the due date.
         3. a.  Each county mutual insurance association transacting
      business in this state whose Iowa premium tax liability for the
      preceding calendar year was one thousand dollars or more shall remit
      on or before June 1, on a prepayment basis, an amount equal to
      one-half of the premium tax liability for the preceding calendar
      year.
         b.  In addition to the prepayment amount in paragraph "a",
      each association shall remit on or before August 15, on a prepayment
      basis, an additional amount equal to the following percent of the
      premium tax liability for the preceding calendar year as follows:
         (1)  For prepayment in the 2003 and 2004 calendar years, eleven
      percent.
         (2)  For prepayment in the 2005 calendar year, twenty-six percent.

         (3)  For prepayment in the 2006 and subsequent calendar years,
      fifty percent.
         c.  The sums prepaid by a county mutual insurance association
      under this subsection shall be allowed as credits against its premium
      tax liability for the calendar year during which the payments are
      made.  If a prepayment made under this subsection exceeds the annual
      premium tax liability, the excess shall be allowed as a credit
      against subsequent prepayment or tax liabilities.  The commissioner
      of insurance may suspend the certificate of authority of an
      association that fails to make a prepayment on or before the due
      date.  

         Section History: Early Form

         [C66, 71, 73, 75, 77, 79, 81, § 518.18] 

         Section History: Recent Form

         2003 Acts, ch 145, §286; 2003 Acts, ch 179, §136, 159; 2004 Acts,
      ch 1175, §339, 348
         Referred to in § 432.1