a. There is hereby imposed on each insurance company an insurance premium tax for the privilege of engaging in the business of insurance within the corporate limits of the City as set out herein below of premiums actually collected in the corporate limits of Bowling Green on those classes of business which such company is authorized to transact, less all premiums returned to policyholders, but in no event shall this tax be less than five ($5.00) dollars per quarter; provided however, with regard to life insurance policies, the insurance premium tax shall be based on first year’s premiums actually collected within the corporate limits of Bowling Green. The insurance premium tax imposed upon premium receipts shall not include premiums received for insuring employers against liability for personal injuries to their employees or death caused thereby under the provisions of the Workers’ Compensation Act, and shall not include premiums received on polices of group health insurance provided for State employees.
b. The insurance premium tax imposed by hereinabove shall be as follows:
Category of Risk | Rate |
Category of Risk | Rate |
(a) Life | 2% (of first year’s premiums only) |
(b) Health | 2% |
(c) Accident | 2% |
(d) Burial | 2% |
(e) Casualty | 2% |
(f) Automobile | 2% |
(g) Inland Marine | 7% |
(h) Fire and Allied Perils | 7% |
(i) All other Risks | 7% |
(j) Multiple Line Policies with indivisible premium | 5.5% |
c. All insurance premium taxes imposed by this Subchapter, including the minimum quarterly tax of five ($5.00) dollars shall be due no later than thirty (30) days after the end of each calendar quarter. Insurance premium taxes which are not paid on or before the due date shall bear the interest rate as defined in KRS 131.010(6). The minimum tax required under this Subchapter shall be a credit on the insurance premium tax due that quarter.
d. Every insurance company subject to the insurance premium tax imposed by this Subchapter, including any insurance company required to pay only the minimum tax, shall on or before March 31 of each calendar year furnish to the City an annual report in writing in affidavit form, therein setting forth the amount of premiums collected from policies insuring risks within the City from the following types of insurance: 1) casualty; 2) automobile; 3) inland marine; 4) fire and allied perils; 5) health; and 6) life.
e. All collections made from the tax imposed upon and related to inland marine, fire and allied perils, all other risks, and multiple line policies with indivisible premium shall be credited to a special reserve fund within the City’s general accounting system entitled, “Fire Improvement Fund.”
1. All disbursements, withdrawals and debits from the special reserve fund herein created shall be restricted to the purchase of apparatus, vehicles, equipment, tools, personal protective gear, safety items and any other necessary capital expenditures, as well as for the construction, maintenance and furnishings of facilities and buildings for the Fire Department, and related debt service on financing of the above items; provided, however, the Board of Commissioners may authorize by Municipal Order expenditures from the fund for other City purposes.
2. No transfers to other funds shall be made from the special reserve fund without the approval of the Board of Commissioners.
(Ord. BG2020-23, 9/1/2020)