Colorado § 10-6-128 Tax on premiums collected - exemptions - penalties

Colorado Statutes

§ 10-6-128 — Tax on premiums collected - exemptions - penalties

Colorado·Title 10 Insurance·Art. Captive Insurance Companies

(1)All captive insurance companies doing business in this state, except a disqualified insurance company, shall pay to the division of insurance an annual tax on the gross amount of all premiums collected, less premiums or premium credits returned to policyholders, on policies or contracts of insurance covering property or risks in this state and on risks and property situated in any other state in which the insurer has not paid premium tax.

(2)The tax imposed by subsection (1) of this section shall be the greater of:

(a)Five thousand dollars; or

(b)(I) One-half of one percent of the first twenty-five million dollars, plus one-quarter of one percent of the next fifty million dollars, plus one-tenth of one percent of each dollar thereafter of direct premiums collected, of the

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(1) All
captive insurance companies doing business in this state, except a disqualified
insurance company, shall pay to the division of insurance an annual tax on the gross
amount of all premiums collected, less premiums or premium credits returned to
policyholders, on policies or contracts of insurance covering property or risks in this
state and on risks and property situated in any other state in which the insurer has
not paid premium tax.

(2) The tax imposed by subsection (1) of this section shall be the greater of:

(a) Five thousand dollars; or

(b) (I) One-half of one percent of the first twenty-five million dollars, plus
one-quarter of one percent of the next fifty million dollars, plus one-tenth of one
percent of each dollar thereafter of direct premiums collected, of the captive
insurance company, plus:

(II) One-quarter of one percent of the first twenty million dollars, plus one-tenth of one percent of each dollar thereafter of assumed reinsurance premiums.

(c) and (d) (Deleted by amendment, L. 94, p. 550, � 16, effective April 6,
1994.)

(e) Premium tax shall not be payable in connection with the receipt of assets
in exchange for the assumption of existing loss reserves and other liabilities.

(2.5) The minimum tax provided for in paragraph (a) of subsection (2) of this
section shall be due and payable on the first day of March of each fiscal year,
accompanied by such forms as may be prescribed by the commissioner. The
balance of the tax when payable for each fiscal year shall be paid on forms
prescribed by the commissioner together with the report required under section 10-6-114 (1). The commissioner may by rule require partial payments, to be made in
quarterly installments, of the balance of the tax payable.

(3) The taxes provided for in this section shall constitute all taxes collectible
under the laws of this state against any such captive insurance companies, and no
other occupation tax or other taxes shall be levied or collected from any captive
insurance company by the state or any county, city, or town within this state, except
ad valorem taxes on real and personal property used in the production of income.

(4) to (8) (Deleted by amendment, L. 94, p. 550, � 16, effective April 6, 1994.)

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Legislative History

Source: L. 72: p. 438, � 1. C.R.S. 1963: � 72-36-28. L. 91: (1) and (2) amended, p. 1225, � 7, effective January 1, 1992. L. 94: Entire section amended, p. 550, � 16, effective April 6. L. 2021: (1) amended, (HB 21-1311), ch. 298, p. 1786, � 13, effective June 23.