Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
91A.080,
304.10-120
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
304.2-110(1) authorizes the
Commissioner of Insurance to promulgate administrative regulations necessary
for or as an aid to the effectuation of any provision of the Kentucky Insurance
Code as established in
KRS
304.1-010.
KRS
91A.080(4) requires the
department to promulgate administrative regulations for the collection and
reporting of local government premium taxes. This administrative regulation
establishes requirements for the accounting and reporting procedures to be used
for the collection and reporting of a local government premium tax.
Section 1. Definitions.
(1) "Commissioner" is defined by
KRS
304.1-050(1).
(2) "Insurance company" shall mean:
(a) An entity holding a certificate of
authority in accordance with KRS Subtitle 304.3; and
(b) A surplus lines broker licensed in
accordance with
KRS
304.10-120.
(3) "Local government" is defined by
KRS
91A.0802(2).
(4) "Local government premium tax" shall mean
a tax or license fee levied pursuant to
KRS
91A.080.
Section 2. Quarterly Payment and Reporting of
Local Government Premium Taxes.
(1) Each
insurance company with local government premium tax liability shall make
payment of its tax liability based on premiums actually collected within a
calendar quarter. Payment shall be made to each local government within thirty
(30) days of the end of each calendar quarter and shall be accompanied by:
(a)
1. Form
LGT-141, City, County, or Urban County Government Quarterly Insurance Premium
Tax Return; and
2. Form LGT-142,
City Credit Against County Taxes; or
(b) A form containing the same information as
Form LGT-141 and LGT-142.
(2) A copy of the report required in
subsection (1) of this section shall not be filed with the
commissioner.
Section 3.
Annual Reports.
(1) By March 31 of each year,
an insurance company shall submit to:
(a) Each
local government to which local government premium taxes have been paid during
the preceding calendar year, a report on the local government premium taxes
paid during the preceding calendar year on:
1.
a. Form LGT-140, City, County, or Urban
County Government Insurance Premium Tax Annual Reconciliation; and
b. Form LGT-142, City Credit Against County
Taxes; or
2. A form
substantially similar to Form LGT-140; and
(b) The department a report on the local
government premium taxes paid during the preceding calendar year, accompanied
by a fee of five (5) dollars per insurance company, through the Department of
Insurance Web site,
https://insurance.ky.gov/doieservices/UserRole.aspx.
(2)
(a) If
an insurance company does not have any local government premium tax liability
for the preceding calendar year, the insurance company shall submit a report to
the department in accordance with subsection (1)(b) of this section.
(b) The report required by paragraph (a) of
this subsection shall be required if the insurance company held an active
license or certificate of authority at any time during the preceding calendar
year.
Section
4. Each insurance company shall maintain records adequate to
support the reports required by this administrative regulation.
Section 5. Each insurance company shall file
the reports required by this administrative regulation. Reports required by
this administrative regulation and filed on a group basis shall not be
acceptable.
Section 6.
Incorporation by Reference.
(1) The following
material is incorporated by reference:
(a)
Form LGT-140, "City, County, or Urban County Government Insurance Premium Tax
Annual Reconciliation", 1/2012;
(b)
Form LGT-141, "City, County, or Urban County Government Quarterly Insurance
Premium Tax Return", 1/2012; and
(c) Form LGT-142 "City Credit Against County
Taxes", 1/2012.
(2) This
material may be inspected, copied, or obtained, subject to applicable copyright
law, at the Department of Insurance, Mayo-Underwood Building, 500 Mero Street,
2 SE 11,, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
This material is also available on the department's Web site at:
http://insurance.ky.gov.
STATUTORY AUTHORITY:
KRS
91A.080(4),
304.2-110(1),
304.4-010