This text of Louisiana § 22:550.23 (Taxes on premiums and assessments) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§550.23. Taxes on premiums and assessments
A.Each captive insurance company shall pay to the commissioner on or before
March first of each year a tax at the rate of fifteen-hundredths of one percent on the direct
premiums collected or contracted for on policies or contracts of insurance written by the
captive insurance company during the year ending the prior December thirty-first, after
deducting from the direct premiums subject to the tax the amounts paid to policyholders as
return premiums which shall include dividends on unabsorbed premiums or premium
deposits returned or credited to policyholders.
B.Each captive insurance company shall pay to the commissioner on or before
March first of each year a tax at the rate of two hundred fourteen-thousandths of one percent
on the first twent
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§550.23. Taxes on premiums and assessments
A. Each captive insurance company shall pay to the commissioner on or before
March first of each year a tax at the rate of fifteen-hundredths of one percent on the direct
premiums collected or contracted for on policies or contracts of insurance written by the
captive insurance company during the year ending the prior December thirty-first, after
deducting from the direct premiums subject to the tax the amounts paid to policyholders as
return premiums which shall include dividends on unabsorbed premiums or premium
deposits returned or credited to policyholders.
B. Each captive insurance company shall pay to the commissioner on or before
March first of each year a tax at the rate of two hundred fourteen-thousandths of one percent
on the first twenty million dollars of assumed reinsurance premium, one hundred forty-three-thousandths of one percent on the next twenty million dollars, forty-eight-thousandths
of one percent on the next twenty million dollars, and twenty-four-thousandths of one percent
on each dollar thereafter. However, no reinsurance tax applies to premiums for risks or
portions of risks that are subject to taxation on a direct basis pursuant to Subsection A of this
Section. No reinsurance premium tax shall be payable in connection with the receipt of
assets in exchange for the assumption of loss reserves and other liabilities of another insurer
under common ownership and control if such transaction is part of a plan to discontinue the
operations of such other insurer, and if the intent of the parties to such transaction is to renew
or maintain such business with the captive insurance company. No reinsurance premium tax
shall be payable in connection with the receipt of assets in exchange for the assumption of
loss reserves and other liabilities of a captive insurance company's parent or affiliates if the
intent of such exchange is to renew or maintain such business with the captive insurance
company.
C. The annual minimum aggregate tax to be paid by a captive insurance company
calculated pursuant to Subsections A and B of this Section is seven thousand five hundred
dollars. The annual maximum aggregate tax to be paid by a captive insurance company
calculated pursuant to Subsections A and B of this Section is two hundred thousand dollars.
D. The reduction of tax in accordance with R.S. 22:832 does not apply to captive
insurance companies.
E. A captive insurance company failing to make returns as required by this Section
or failing to pay within the time required for all taxes assessed pursuant to this Section shall
be subject to the provisions of R.S. 22:846.
F. Subject to the provisions of Subsection C of this Section, two or more captive
insurance companies under common ownership and control shall be taxed as though they are
a single captive insurance company.
G. The tax provided for in this Section constitutes all taxes collectible under the laws
of this state from any captive insurance company, and no other occupation tax or other taxes
shall be levied or collected from any captive insurance company by the state or any parish,
city, or municipality within this state, except meals and rooms taxes, sales and use taxes, and
ad valorem taxes on real and personal property used in the production of income.
H. The premium tax revenues collected pursuant to this Section shall be transferred
annually to the department for the regulation of captive insurance companies pursuant to this
Subpart.
I. The tax provided for in this Section shall be calculated on an annual basis,
notwithstanding policies or contracts of insurance or contracts of reinsurance issued on a
multi-year basis. In the case of multi-year policies or contracts, the premium shall be
prorated for purposes of determining the tax pursuant to this Section.
J. As used in this Section, the following terms have the following meanings:
(1) "Common ownership and control" means ownership and control of two or more
captive insurance companies by the same person or group of persons.
(2) "Ownership and control" means the following:
(a) In the case of a stock corporation, the direct or indirect ownership of eighty
percent or more of the outstanding voting stock of the corporation.
(b) In the case of a mutual or nonprofit corporation, the direct or indirect ownership
of eighty percent or more of the surplus and the voting power of such corporation.
(c) In the case of a limited liability company, the direct or indirect ownership of
eighty percent or more of the membership interests in the limited liability company.