(A) The license fee or tax imposed upon an insurance company with respect to life insurance policies shall be two percent (2%) and based upon the first year’s premiums only. The license fee or tax shall be applied to the amount of the premiums actually collected within each calendar quarter upon the lives of persons residing within the corporate limits of the city.
(B) Except as provided in subsection (C) of this section, the license fee or tax imposed upon each insurance company with respect to any insurance policy which is not a life insurance policy shall be as follows:
(1) Category of risk rate.
(a) Life: two percent (2%) (of first year’s premiums only).
(b) Health: two percent (2%).
(c) Casualty: two percent (2%).
(d) Automobile: eight percent (8%).
(e) Inland marine: eight percent (8%).
(f) Fire: eight percent (8%).
(g) All other risks: eight percent (8%).
(2) And shall be applied to the premiums actually collected within each calendar quarter by reason of the issuance of such policies on risks located within the corporate limits of the city. The license fee or tax shall apply only to those classes of business which such insurance company is authorized to transact, less all premiums returned to policyholders.
(C) No license fee or tax imposed upon premium receipts shall apply to the following:
(1) Policies of group health insurance provided for state employees under KRS 18A.225;
(2) Health insurance policies issued to individuals including policies issued through Kentucky Access;
(3) Workers compensation insurance;
(4) Annuities;
(5) Federal flood insurance;
(6) Municipal bonds, leases, or other debt instruments issued by or on behalf of the city unless the bonds, leases, or other debt instruments are issued for profit or on behalf of for-profit or private organization;
(7) Policies of high deductible health plans as defined in 26 U.S.C. § 223(c)(2), commonly referred to as Health Savings Accounts;
(8) Policies of insurance, insured or reinsured by the Federal Crop Insurance Corporation, 7 C.F.R. 400.352(b)(2);
(9) Policies insuring or naming the state or one of its agencies or political subdivisions as an insured and surety bonds where the state or one of its agencies or political subdivisions is the obligee. For the purposes of local government premium tax payments, school districts are considered agencies of the state and policies insuring school districts and bonds with school districts as the obligee are exempt from local government premium taxes;
(10) Policies issued to public service companies which pay ad valorem taxes;
(11) Entities issued a certificate of authority to do business in the state only as a health maintenance organization pursuant to KRS 304.38-060;
(12) Entities issued a certificate of authority to do business in Kentucky as a captive insurer pursuant to KRS 304.49-010; or
(13) Domestic life insurance companies electing to be taxed under the provisions of KRS 136.320.
(Ord. 2016-01, passed 3-10-16; Am. Ord. 2023-01, passed 3-3-23)