§ 27-1-18-2 — Gross premium privilege tax

(a) Every insurance company not organized
under the laws of this state, and each domestic company electing to be
taxed under this section, and doing business within this state shall, on
or before March 1 of each year, report to the department, under the oath
of the president and secretary, the gross amount of all premiums
received by it on policies of insurance covering risks within this state,
or in the case of marine or transportation risks, on policies made,
written, or renewed within this state during the twelve (12) month
period ending on December 31 of the preceding calendar year. From
the amount of gross premiums described in this subsection shall be
deducted:
(1) considerations received for reinsurance of risks within this
state from companies authorized to transact an insurance business
in this state;
(2) the amount of dividends paid or credited to resident insureds,
or used to reduce current premiums of resident insureds;
(3) the amount of premiums actually returned to residents on
account of applications not accepted or on account of policies not
delivered; and
(4) the amount of unearned premiums returned on account of the
cancellation of policies covering risks within the state.
(b) A domestic company shall be taxed under this section only in
each calendar year with respect to which it files a notice of election.
The notice of election shall be filed with the insurance commissioner
and the commissioner of the department of state revenue on or before
November 30 in each year and shall state that the domestic company
elects to submit to the tax imposed by this section with respect to the
calendar year commencing January 1 next following the filing of the
notice. The exemption from license fees, privilege, or other taxes
accorded by this section to insurance companies not organized under
the laws of this state and doing business within this state which are
taxed under this chapter shall be applicable to each domestic company
in each calendar year with respect to which it is taxed under this
section. In each calendar year with respect to which a domestic
company has not elected to be taxed under this section it shall be taxed
without regard to this section.
(c) For the privilege of doing business in this state, every insurance
company required to file the report provided in this section shall pay
into the treasury of this state an amount equal to the excess, if any, of
the gross premiums over the allowable deductions multiplied by one
and three-tenths percent (1.3%).
(d) Payments of the tax imposed by this section shall be made on a
quarterly estimated basis. The amounts of the quarterly installments
shall be computed on the basis of the total estimated tax liability for the
current calendar year and the installments shall be due and payable on
or before April 15, June 15, September 15, and December 15, of the
current calendar year.
(e) Any balance due shall be paid in the next succeeding calendar
year at the time designated for the filing of the annual report with the
department.
(f) Any overpayment of the estimated tax during the preceding
calendar year shall be allowed as a credit against the liability for the
first installment of the current calendar year.
(g) In the event a company subject to taxation under this section
fails to make any quarterly payment in an amount equal to at least:
(1) twenty-five percent (25%) of the total tax paid during the
preceding calendar year; or
(2) twenty per cent (20%) of the actual tax for the current
calendar year;
the company shall be liable, in addition to the amount due, for interest
in the amount of one percent (1%) of the amount due and unpaid for
each month or part of a month that the amount due, together with
interest, remains unpaid. This interest penalty shall be exclusive of and
in addition to any other fee, assessment, or charge made by the
department.
(h) The taxes under this article shall be in lieu of all license fees or
privilege or other tax levied or assessed by this state or by any
municipality, county, or other political subdivision of this state. No
municipality, county, or other political subdivision of this state shall
impose any license fee or privilege or other tax upon any insurance
company or any of its agents for the privilege of doing an insurance
business in the municipality, county, or other political subdivision,
except the tax authorized by IC 22-12-6-5. However, the taxes
authorized under IC 22-12-6-5 shall be credited against the taxes
provided under this chapter. This section shall not be construed to
prohibit the levy and collection of state, county, or municipal taxes
upon real and tangible personal property of such company, or to
prohibit the levy of any retaliatory tax, fine, penalty, or fee provided by
law. However, all insurance companies, foreign or domestic, paying
taxes in this state predicated in part on their premium income from
policies sold and premiums received in Indiana, shall have the same
rights and privileges from further taxation and shall be given the same
credits wherever applicable, as those set out for those companies
paying only a tax on premiums as set out in this section.
(i) Any insurance company failing or refusing, for more than thirty
(30) days, to render an accurate account of its premium receipts as
provided in this section and pay the tax due thereon shall be subject to
a penalty of one hundred dollars ($100) for each additional day such
report and payment shall be delayed, not to exceed a maximum penalty
of ten thousand dollars ($10,000). The penalty may be ordered by the
commissioner after a hearing under IC 4-21.5-3. The commissioner
may revoke all authority of such defaulting company to do business
within this state, or suspend such authority during the period of such
default, in the discretion of the commissioner.
Formerly: Acts 1935, c.162, s.235; Acts 1963, c.301, s.1; Acts
1971, P.L.386, SEC.1. As amended by P.L.252-1985, SEC.77;
P.L.245-1987, SEC.15; P.L.268-1999, SEC.7; P.L.144-2000, SEC.2;
P.L.81-2012, SEC.7; P.L.136-2018, SEC.162.