House Journal: Page 1715: Thursday, May 1, 2003
35 annual premium tax liability, the excess shall be
36 allowed as a credit against subsequent prepayment or
37 tax liabilities. The commissioner of insurance may
38 suspend the certificate of authority of an association
39 that fails to make a prepayment on or before the due
40 date.
41 Sec. . Section 518A.35, Code 2003, is amended
42 to read as follows:
43 518A.35 ANNUAL TAX.
44 1. A state mutual insurance association doing
45 business under this chapter shall on or before the
46 first day of March, each year, pay to the director of
47 revenue and finance, or a depository designated by the
48 director, a sum equivalent to two the applicable
49 percent of the gross receipts from premiums and fees
50 for business done within the state, including all
Page 16
1 insurance upon property situated in the state without
2 including or deducting any amounts received or paid
3 for reinsurance. However, a company reinsuring
4 windstorm or hail risks written by county mutual
5 insurance associations is required to pay a two the
6 applicable percent tax on the gross amount of
7 reinsurance premiums received upon such risks, but
8 after deducting the amount returned upon canceled
9 policies and rejected applications covering property
10 situated within the state, and dividends returned to
11 policyholders on property situated within the state.
12 For purposes of this section, "applicable percent"
13 means the same as specified in section 432.1,
14 subsection 4.
15 2. Except as provided in subsection 3, the premium
16 tax shall be paid on or before March 1 of the year
17 following the calendar year for which the tax is due.
18 The commissioner of insurance may suspend the
19 certificate of authority of a state mutual insurance
20 association that fails to pay its premium tax on or
21 before the due date.
22 3. a. Each state mutual insurance association
23 transacting business in this state whose Iowa premium
24 tax liability for the preceding calendar year was one
25 thousand dollars or more shall remit on or before June
26 1, on a prepayment basis, an amount equal to one-half
27 of the premium tax liability for the preceding
28 calendar year.
29 b. In addition to the prepayment amount in
30 paragraph "a", each association shall remit on or
31 before June 30, on a prepayment basis, an additional
32 amount equal to the following percent of the premium
33 tax liability for the preceding calendar year as
© 2003 Cornell College and
League of Women Voters of Iowa
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