(a)Before March 1 of each year, an organization
providing nonprofit agricultural organization coverage shall report to
the department, under the oath of the president and secretary, the gross
premiums received from providing nonprofit agricultural organization
coverage during the twelve (12) month period ending on December 31
of the preceding calendar year.
(b)Any organization providing nonprofit agricultural organization
coverage shall pay into the treasury of Indiana an amount equal to one
and three-tenths percent (1.3%) of gross premiums collected during the
previous calendar year. In the computation of the tax, the organization
providing nonprofit agricultural organization coverage shall be entitled
to deduct any annual Indiana gross premiums returned on account of
cancellation or di
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Before March 1 of each year, an organization
providing nonprofit agricultural organization coverage shall report to
the department, under the oath of the president and secretary, the gross
premiums received from providing nonprofit agricultural organization
coverage during the twelve (12) month period ending on December 31
of the preceding calendar year.
(b) Any organization providing nonprofit agricultural organization
coverage shall pay into the treasury of Indiana an amount equal to one
and three-tenths percent (1.3%) of gross premiums collected during the
previous calendar year. In the computation of the tax, the organization
providing nonprofit agricultural organization coverage shall be entitled
to deduct any annual Indiana gross premiums returned on account of
cancellation or dividends returned to members or expenditures used for
the purchase of reinsurance or stop-loss coverage.
(c) Payments of the nonprofit agricultural organization health
coverage tax imposed by this chapter 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.
(d) Any balance due shall be paid on or before April 15 of the next
succeeding calendar year.
(e) 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.
(f) If an organization providing nonprofit agricultural organization
coverage 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 percent (20%) of the actual tax for the current calendar
year;
the organization 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.
(g) The nonprofit agricultural organization health coverage tax
under this chapter shall be in lieu of all license fees or privilege or
other tax levied or assessed by Indiana or by any municipality, county,
or other political subdivision of Indiana. No municipality, county, or
other political subdivision of Indiana shall impose any license fee or
privilege or other tax upon any nonprofit agricultural organization or
any of its agents for the privilege of providing nonprofit agricultural
organization coverage 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 for 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 an organization providing
nonprofit agricultural organization coverage or to prohibit the levy of
any retaliatory tax, fine, penalty, or fee provided by law. However, all
organizations providing nonprofit agricultural organization coverage
paying taxes in Indiana predicated in part on their income from
nonprofit agricultural organization coverage provided shall have the
same rights and privileges from further taxation, and shall be given the
same credits wherever applicable, as those set out for insurance
companies paying only a tax on premiums as set out in IC 27-1-18-2.
(h) Any organization providing nonprofit agricultural organization
coverage that fails or refuses, for more than thirty (30) days, to:
(1) render an accurate account of its receipts as provided in this
chapter; and
(2) pay the nonprofit agricultural organization health coverage 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 the defaulting nonprofit
agricultural organization to provide nonprofit agricultural organization
coverage or suspend the nonprofit agricultural organization's authority
during the period of the default, in the discretion of the commissioner.