Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-54 - Self-Insured Worker's Compensation Pools
Section 0780-01-54-.12 - TAXES AND DELINQUENCIES

Universal Citation: TN Comp Rules and Regs 0780-01-54-.12

Current through September 24, 2024

(1) Each pool shall be subject to pay a tax on monies collected from members in the amount required of insurance companies pursuant to T.C.A. § 56-4-206. Such tax shall also include the surcharge imposed on insurance companies pursuant to T.C.A. § 56-4-206 to be earmarked for the administration of the Tennessee Occupational Safety and Health Act, T.C.A. § 50-3-101, et seq. Assessments made by the pool or ordered by the Commissioner shall be taxed as premium pursuant to this Rule.

(2) Any pool failing and neglecting to make such returns and payments promptly and correctly on or before the last day of the sixth (6th) month following the end of the pool's fiscal year shall forfeit and pay to the Commissioner, in addition to the amount of these taxes, an amount equal to five percent (5%) for the first month or fractional part thereof of delinquency; provided, that should the period of delinquency exceed one (1) month, the rate of penalty will be an additional five percent (5%) for the second month or fractional part thereof and penalty thereafter at the rate of one half of one percent (.5%) per month of the amount of tax due, the maximum penalty not to exceed ten thousand dollars ($10,000) for any pool not more than three (3) days delinquent. All delinquencies shall bear interest at the rate of ten percent (10%) per annum from the date the amount was due until paid. The penalty and interest herein provided for shall apply to any part of the tax unpaid by the due date and no such penalty or interest may be waived.

(3) The Commissioner has the discretion, for good cause shown, upon application made at least thirty (30) days in advance of delinquency date, to grant an extension of time determined by the Commissioner but not to exceed sixty (60) days to a pool to file the premium tax returns and pay the tax imposed by T.C.A. § 56-4-206, without penalty attached, but such tax shall bear interest as herein provided from the date the amount was due.

(4) Any pool failing to pay the tax due plus penalty and interest for sixty (60) days beyond the due date shall thereafter be barred from transacting any business of insurance in the state until these taxes and penalties are fully paid, and the Commissioner shall revoke the certificate of authority granted to the pool and its administrator to transact business in the state.

(5) No grace period for the filing of returns and payments shall be allowed except for the thirty (30) day extension provided for in Paragraph (3) of this Rule. A premium tax return and payment made to the Commissioner shall not be considered as paid on or before the due date unless:

(a) The premium tax return and payment are received by the Commissioner on or before the due date;

(b) The premium tax return and payment bears a post office cancellation mark stamped by the United States post office on or before the due date, or are mailed by certified or registered mail, or have a certificate of mailing on or before the due date. A premium tax return and payment received by the Commissioner bearing a metered mail stamp and no post office cancellation mark stamped by the United States post office shall be deemed filed and received on the date such premium tax return arrives at the Commissioner; or

(c) In the event a premium tax return and payment are mailed but not received by the Commissioner, or received and the cancellation mark is illegible or omitted, such return and payment shall be deemed filed and received on the date they were mailed, if the sender establishes that the premium tax return and payment were deposited in the United States mail. In order to establish proof of mailing under these circumstances, a record authenticated by the United States post office that the original mailing was sent registered mail, certified mail, or by certificate of mailing, shall be the only proof accepted by the Commissioner.

(6) A pool may receive a tax credit in accordance with T.C.A. § 56-4-210.

Authority: T.C.A. §§ 50-6-405(c) and (h), 56-4-206, 56-4-210, 56-4-216 and 2005 Public Acts, Chapter 390.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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