H. B. 4125


(By Delegates Phillips, Michael and Gallagher)
[Introduced January 25, 1994; referred to the
Committee on Banking and Insurance then Finance.]




A BILL to amend and reenact section fourteen-c, article three, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to the filing of quarterly tax estimates.
Be it enacted by the Legislature of West Virginia:

That section fourteen-c, article three, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.

§ 33 - 3 - 14c. Computation of tax; payment; filing of quarterly tax estimates.

The taxes levied hereunder shall be due and payable in quarterly installments on or before the twenty-fifth day of the month succeeding the end of the quarter in which they accrue, except for the fourth quarter, for which taxes shall be due and payable on or before the first day of March of the succeeding year. The Every insurer subject to making such payments shall, by the twenty-fifth day of the month succeeding the close of the quarter, except the fourth quarter as provided above, prepare an estimate of the tax based on the estimated amount of taxable premium during the preceding calendar quarter, less adjustments to the gross amount of direct premiums from the preceding quarter, sign the same by its president or secretary, under oath, and mail the same together with a remittance of the amount of tax to the office of the commissioner. The estimate and tax remittance, if any shall be postmarked on or by the twenty-fifth day of the month succeeding the quarter in which the taxes accrue, or in the case of the fourth quarter, postmarked on or before the first day of March.

Any insurer failing or refusing to pay estimated taxes and whose taxes are not postmarked by the preceding dates for quarterly filing is liable for a civil penalty of up to one hundred dollars for each additional day of delinquency, to be assessed by the commissioner. Failure of an insurer to make quarterly payments, if required, of at least one fourth of either the total tax paid during the preceding calendar year or eighty percent of the actual tax for the current calendar year is considered the same as a failure or refusal to pay the estimated taxes and subjects the insurer to the penalties provided in this section. Any insurer filing or refusing to timely file a quarterly estimate of the tax, even if no tax is due for the quarter, is liable for a penalty of up to one hundred dollars to be assessed by the commissioner for each such failure or refusal. The amount of estimated taxes and the penalties collected shall be paid to the commissioner and he may suspend the insurer until estimated taxes and penalty, should any penalty be imposed, are fully paid.



NOTE: The purpose of this bill is to clarify that quarterly premium tax filings must be timely made even if the insurer has zero tax liability for the quarter. Present language is unclear and makes enforcement difficult. If a licensed company does not file, it leaves regulators to doubt whether the company had liability and did not file.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.