Every insurance company or association of whatever kind or character, not including
fraternal beneficiary associations, and nonprofit hospital and medical service corporations,
shall, as required by law, pay to the director of the department of revenue, or to a depository
designated by the director, as taxes, an amount equal to the following, except that the
premium tax applicable to county mutual insurance associations shall be governed by
section 518.18:
1.
a.The applicable percent, as provided in subsection 2, of the gross amount of
premiums received during the preceding calendar year by every life insurance company
or association, not including fraternal beneficiary associations, or the gross payments or
deposits collected from holders of fraternal beneficiary association certificates
Free access — add to your briefcase to read the full text and ask questions with AI
Every insurance company or association of whatever kind or character, not including
fraternal beneficiary associations, and nonprofit hospital and medical service corporations,
shall, as required by law, pay to the director of the department of revenue, or to a depository
designated by the director, as taxes, an amount equal to the following, except that the
premium tax applicable to county mutual insurance associations shall be governed by
section 518.18:
1. a. The applicable percent, as provided in subsection 2, of the gross amount of
premiums received during the preceding calendar year by every life insurance company
or association, not including fraternal beneficiary associations, or the gross payments or
deposits collected from holders of fraternal beneficiary association certificates, on contracts
of insurance covering risks resident in this state during the preceding year, including
contracts for group insurance and annuities and without including or deducting any amounts
received or paid for reinsurance.
b. In determining the gross amount of premiums to be taxed hereunder, there shall
be excluded all premiums received from policies or contracts issued in connection with a
pension, annuity, profit-sharing plan or individual retirement annuity qualified or exempt
under sections 401, 403, 404, 408 or 501(a) of the federal Internal Revenue Code as now or
hereafter amended and all premiums returned to policyholders or annuitants during the
preceding calendar year, except cash surrender values, all dividends that, during said year,
have been paid in cash or applied in reduction of premiums or left to accumulate to the
credit of policyholders or annuitants.
c. In determining the gross amount of premiums to be taxed, there shall be excluded all
consideration received in connection with an annuity contract, whether or not such contract
is qualified or exempt under the federal Internal Revenue Code as now or hereafter amended,
andallpremiumsreturnedtopolicyholdersorannuitantsduringtheprecedingcalendaryear,
except cash surrender values, and all dividends that, during said year, have been paid in cash
or applied in reduction of premiums or left to accumulate to the credit of policyholders or
annuitants.
2. The “applicable percent” for purposes of subsection 1 of this section, section 432.1B,
and section 432.2 is the following:
a. For calendar years beginning before the 2003 calendar year, two percent.
b. For the 2003 calendar year, one and three-fourths percent.
c. For the 2004 calendar year, one and one-half percent.
d. For the 2005 calendar year, one and one-fourth percent.
e. For the 2006 calendar year through the 2023 calendar year, one percent.
f. For the 2024 calendar year, nine hundred seventy-five thousandths of one percent.
g. For the 2025 calendar year, ninety-five hundredths of one percent.
h. For the 2026 calendar year, nine hundred twenty-five thousandths of one percent.
i. For the 2027 and subsequent calendar years, nine-tenths of one percent.
3. The applicable percent, as provided in subsection 4, of the gross amount of premiums
written, and assessments and fees received during the preceding calendar year by every
company or association other than life on contracts of insurance other than life for business
done in this state, including all insurance upon property situated in this state except surplus
lines insurance, after deducting the amounts returned upon canceled policies, certificates,
and rejected applications but not including the gross premiums written, and assessments
and fees received in connection with ocean marine insurance authorized in section 515.48.
For surplus lines insurance, the applicable percent, as provided in subsection 4, shall be
calculated on the amount of premiums written on surplus lines insurance policies where the
home state of the insured, as defined in chapter 515I, is Iowa.
4. The “applicable percent” for purposes of subsection 3 is the following:
a. For calendar years beginning before the 2004 calendar year, two percent.
b. For the 2004 calendar year, one and three-fourths percent.
c. For the 2005 calendar year, one and one-half percent.
d. For the 2006 calendar year, one and one-fourth percent.
e. For the 2007 calendar year through the 2023 calendar year, one percent.
f. For the 2024 calendar year, nine hundred seventy-five thousandths of one percent.
g. For the 2025 calendar year, ninety-five hundredths of one percent.
h. For the 2026 calendar year, nine hundred twenty-five thousandths of one percent.
i. For the 2027 and subsequent calendar years, nine-tenths of one percent.
5. Except as provided in subsection 6, 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 may
suspend or revoke the license of a company or association that fails to pay its premium tax
on or before the due date.
6. a. Each insurance company and 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 life insurance company
or association which is subject to tax under subsection 1 of this section and each mutual
health service corporation which is subject to tax under section 432.2 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 calendar year, four percent.
(2) For prepayment in the 2004 calendar year, twenty-one percent.
(3) For prepayment in the 2005 and subsequent calendar years, fifty percent.
c. In addition to the prepayment amount in paragraph “a”, each insurance company or
association, other than a life insurance company or association, which is subject to tax under
subsection 3 shall remit on or before August 15, on a prepayment basis, an additional amount
3 INSURANCE COMPANIES TAX, §432.1A
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.
d. The sums prepaid by a company or 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 shall authorize the department of revenue to
make a cash refund to an insurer, in lieu of a credit against subsequent prepayment or tax
liabilities, if the insurer demonstrates the inability to recoup the funds paid via a credit. The
commissioner shall adopt rules establishing eligibility criteria for such a refund and a refund
process. The commissioner may suspend or revoke the license of a company or association
that fails to make a prepayment on or before the due date.