H. B. 2654
(By Delegate Michael)
[Introduced March 20, 1997; referred to the
Committee on Banking and Insurance then Finance.]
A BILL to amend article twelve, chapter twenty-nine of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
thirteen, relating to the board of risk and insurance
management; exempting certain entities from payment of premium
taxes.
Be it enacted by the Legislature of West Virginia:
That article twelve, chapter twenty-nine of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirteen, to read as follows:
§29-12-13. Premium Tax Liability.
Notwithstanding any other provision of this code to the
contrary, the amount of any gross direct premiums attributable to
a policy or contract of insurance entered into with the board of risk and insurance management shall be separately reported on the
annual financial statement of the insurer. These gross direct
premiums so reported may not be subject to the tax imposed on gross
direct premiums pursuant to article three, chapter thirty-three of
this code. The provisions of this section shall be effective upon
passage and shall apply to any amount of premium tax owed and not
yet paid upon the effective date of this section.
NOTE: The purpose of this bill is to clarity that insurers
doing business with the board of risk and insurance management are
not subject to the premium tax on gross direct premiums received
from the board.