2005 Idaho Code - 41-402 — PREMIUM TAX

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 4
                                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 United States 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 which
exclusively insures members who are governmental entities, as defined by
section 6-902(1), (2) and (3), Idaho Code.
    (9)  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.