§ 27-43-9. Tax on premiums collected.
(a) Each captive insurance company shall pay to the division of taxation, on or before
the first day of March of each year, a tax at the rate of two tenths of one percent
(0.2%) on the first twenty million dollars ($20,000,000), and fifteen one hundredths
of one percent (0.15%) on the next twenty million dollars ($20,000,000), and one tenth
of one percent (0.1%) on the next twenty million dollars ($20,000,000), and thirty-seven
and one-half thousandths of one percent (0.0375%) on each dollar thereafter on the
direct premiums collected or contracted for on policies or contracts of insurance
written by the captive insurance company during the year ending December 31 next preceding,
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 division of taxation on or before
the first day of March of each year a tax at the rate of one hundred and twelve and
one-half thousandths of one percent (0.1125%) on the first twenty million dollars
($20,000,000) of assumed reinsurance premium, and seventy-five thousandths of one
percent (0.075%) on the next twenty million dollars ($20,000,000), and twenty-five
thousandths of one percent (0.025%) on the next twenty million dollars ($20,000,000),
and twelve and one-half thousandths of one percent (0.0125%) of each dollar thereafter.
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 is 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 this transaction is part of a plan to discontinue the operations
of the other insurer, and if the intent of the parties to this transaction is to renew
or maintain this business with the captive insurance company.
(c) If the aggregate taxes to be paid by a captive insurance company calculated under
subsections (a) and (b) of this section amount to less than twenty-five hundred dollars
($2,500) in any year, the captive insurance company shall pay a tax of twenty-five
hundred dollars ($2,500) for that year.
(d) Two (2) or more captive insurance companies under common ownership and control are
taxed as though they were a single captive insurance company.
(e) For the purposes of this section, common ownership and control means:
(1) In the case of stock corporations, the direct or indirect ownership of eighty percent
(80%) or more of the outstanding voting stock of two (2) or more corporations by the
same shareholder or shareholders; and
(2) In the case of mutual corporations, the direct or indirect ownership of eighty percent
(80%) or more of the surplus and the voting power of two (2) or more corporations
by the same member or members.
(f) A captive insurance company is not subject to the gross premium tax imposed under
chapter 17 of title 44.