ENGROSSED
Senate Bill No. 647
(By Senator Craigo)
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[Introduced February 18, 2002; referred to the Committee
on Finance.]
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A BILL to amend and reenact section fifteen, article three, chapter
thirty-three of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to taxes on the sale
of annuities in the state; and clarifying the alternatives
that life insurers may choose for reporting and paying taxes
on annuities.
Be it enacted by the Legislature of West Virginia:
That section 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.
§33-3-15. Annuity tax.
(a) 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 its annuity business
transacted in this state and stating the amount of tax due under
this section, together with payment in full for the tax due. The
tax is the sum equal to one per centum of the gross amount of the
annuity considerations, less annuity considerations returned and
less termination allowances on group annuity contracts. All the
taxes received by the commissioner shall be paid into the insurance
tax fund created in subsection (b), section fourteen of this
article. In the case of funds accepted by a life insurer under an
agreement which provides for an accumulation of money to purchase
annuities at future dates, annuity considerations may be either
considered by the life insurer to be collected and received upon
receipt or upon actual application to the purchase of annuities.
Any earnings credited to money accumulated while under the latter
alternative will also be considered annuity considerations. For
purposes of this election, the alternative which the life insurer
elected to file its tax return for the two thousand one tax year or
which it elects when it enters the state, whichever is later, shall
be considered the life insurer's election between these
alternatives. A life insurer filing a year two thousand one tax
return shall provide written notice to the commissioner of its election within ninety days of the effective date of this article.
Otherwise, a life insurer shall provide written notice to the
commissioner of its election within ninety days after it enters the
state. Thereafter, a life insurer may not change its election
without the consent of the insurance commissioner. The insurance
commissioner may develop forms to assure compliance with this
subsection.
(b) The amendment to this section enacted during the regular
session of the Legislature in the year one thousand nine hundred
ninety-eight is effective on the first day of July, one thousand
nine hundred ninety-eight.