Senate Bill No. 496
(By Senators Love, Schoonover and Wagner)
____________
[Introduced February 19, 1996; referred to the Committee
on Finance.]
____________
A BILL to amend and reenact sections fourteen, fourteen-a and
fifteen, article three, chapter thirty-three of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, relating to directing revenue collected from the
remaining percentages of the insurance taxes.
Be it enacted by the Legislature of West Virginia:
That sections fourteen, fourteen-a and fifteen, 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.
§33-3-14. Annual financial statement and premium tax return;
remittance by insurer of premium tax, less certain deductions.
Every insurer transacting insurance in West Virginia shall
file with the commissioner, on or before the first day of March,
each year, a financial statement made under oath of its president
or secretary and on a form prescribed by the commissioner. Such
insurer shall also, on or before the first day of March of each
year subject to the provisions of section fourteen-c of this
article, under the oath of its president or secretary, make a
premium tax return for the previous calendar year, on a form
prescribed by the commissioner showing the gross amount of direct
premiums (whether designated as a premium or by some other name)
collected and received by it during the previous calendar year on
policies covering risks resident, located or to be performed in
this state and compute the amount of premium tax chargeable to it
in accordance with the provisions of this article, deducting the
amount of quarterly payments as required to be made pursuant to
the provisions of section fourteen-c of this article, if any,
less any adjustments to the gross amount of such direct premiums
made during such calendar year, if any, and transmit with such
return to the commissioner a remittance in full for the tax due.
The tax shall be a sum equal to two percent of the gross direct premiums, including dividends (by whatever name called) on
participating policies applied in reduction of premiums, less
premiums returned to policyholders because of cancellation of
policies, and shall also include any additional tax due under
section fourteen-a of this section. All taxes received by the
commissioner shall be paid by him into the state treasury for the
benefit of the state fund: Provided, That four percent of this
premium tax revenue shall be directed to the operations of the
state fire commission in addition to revenue appropriated from
general revenue and special revenue.
§33-3-14a. Additional premium tax.
For the purpose of providing additional revenue for the
state general revenue fund, there is hereby levied and imposed,
in addition to the taxes imposed by section fourteen of this
article, an additional premium tax equal to one percent of such
gross direct premiums, including dividends (by whatever name
called) on participating policies applied in reduction of
premiums, less premiums returned to policyholders because of
cancellation of policy. Except as otherwise provided in this
section, all provisions of this article relating to the levy,
imposition and collection of the regular premium tax shall be applicable to the levy, imposition and collection of such
additional tax.
All moneys received from the additional tax imposed by this
section, less deductions allowed by this article for refunds and
for costs of administration, shall be received by the
commissioner and shall be paid by him into the state treasury for
the benefit of the state fund: Provided, That four percent of
this premium tax revenue shall be directed to the operations of
the state fire commission in addition to revenue appropriated
from general revenue and special revenue.
§33-3-15. Annuity tax.
Every life insurer transacting insurance in West Virginia
shall make a return to the commissioner annually on a form
prescribed by the commissioner, on or before the first day of
March, under the oath of its president or secretary, of the gross
amount of annuity considerations collected and received by it
during the previous calendar year on business transacted in this
state and stating the amount of tax due hereunder, together with
payment in full for such tax due. Such tax shall be a sum equal
to one per centum percent of the gross amount of such annuity
considerations, less annuity considerations returned and less termination allowances on group annuity contracts. All such
taxes received by the commissioner shall be paid by him into the
state treasury for the benefit of the state fund: Provided,
That four percent of this premium tax revenue shall be directed
to the operations of the state fire commission in addition to
revenue appropriated from general revenue and special revenue.
NOTE: The purpose of this bill is to direct revenue
collected from the remaining percentages of the insurance taxes.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.