There is hereby imposed on each insurance company a license fee (hereinafter referred to as a local government premiums tax, or LGPT), for the privilege of engaging in the business of insurance within the corporate limits of the city, on a calendar-year basis, based upon the following:
(A) The term PREMIUMS is defined as premiums actually collected by an insurance company within each calendar quarter by reason of the issuance of policies and contracts of insurance on risks located within the city and includes premiums on new policies and contracts of insurance and on renewal business, as well as all other classes of premiums, less all premiums returned to policyholders.
(B) Except as otherwise provided in division (C) below, the license fee imposed upon each insurance company which issues any insurance policy or contract of insurance shall be the following percentage of premiums on those classes of insurance which such company is authorized to issue (the base fee):
Fire and Allied Perils | Casualty Liability Only | Vehicle | Inland Marine | Health | Life | All Other Risks Taxed | |
Initial Rate | 8% | 8% | 8% | 8% | 0% | 8% | 8% |
Note: The base fee shall not apply to premiums exempted by state or federal law. | |||||||
(C) In addition to the base fee, an additional license fee in the amount of 7.5% is hereby imposed by the city upon each insurance company on the premiums for each class of insurance listed in division (B) above, provided that Louisville Metro has raised its LGPT rate from 5% to 12.5% effective July 1, 2019 for any of the classes of insurance listed in division (B) above. In the event the Louisville Metro LGPT, effective July 1, 2019, is raised to an amount different than 12.5%, but more than the city's base fee, the city hereby imposes an additional license fee on each class of insurance listed in division (B) above, equal to the city LGPT credit allowable under KRS 91A.080(12). In the event the Louisville Metro LGPT, effective July 1, 2019, remains 5% for any class of insurance listed in division (B) above, the city's base fee shall apply.
(Ord. 19-04, Series 2019, passed 3-5-19; Am. Ord. 4, Series 2022, passed 3-15-22)