There is imposed on each insurance company a premium tax for the privilege of engaging in the business of insurance within the corporate limits of the City on a calendar-year basis.
(A) The insurance premium tax imposed upon each insurance company which issues life insurance policies on the lives of persons residing within the corporate limits of the City shall be based upon 10% of the first year’s premiums actually collected within each calendar quarter by reason of the issuance of the policies. Said fee shall continue annually thereafter at said rate until changed by the City based upon receipt of updated premiums.
(B) The insurance premium tax imposed upon each insurance company which issues any insurance policy for casualty, motor vehicle, health, fire and allied perils shall be 15%of the premiums actually collected within each calendar quarter by reason of the issuance of the policies on risks located within the corporate limits of the City on those classes of businesses which the company is authorized to transact, less all premiums returned to policy holders; however, any insurance premium tax upon premium receipts shall not include premiums exempted by state statute.
(C) The insurance premium tax imposed upon each insurance company which issued any insurance policy for inland marine and all other risks shall be 10% of the premiums actually collected within each calendar quarter by reason of the issuance of the policies on risks located within the corporate limits of the City on those classes of businesses which the company is authorized to transact, less all premiums returned to policy holders; however, any license fee upon premium receipts shall not include premiums exempted by state statute.
(D) All insurance premium taxes imposed by this section shall be due no later than 30 days after the end of each calendar quarter. Insurance premium taxes which are not paid on or before the due date shall bear interest at the tax interest rate as defined in KRS 131.010(6).
(E) Every insurance company subject to the insurance premium taxes imposed by this section shall annually, by March 31, furnish the City with a written breakdown of all collections in the preceding calendar year for the following categories of insurance:
(1) Casualty;
(2) Motor vehicle;
(3) Inland marine;
(4) Fire and allied perils;
(5) Health;
(6) Life; and
(7) All other risks.
(F) All such premiums required under this division shall be based upon the amount of premiums collected upon policies or contracts of insurance for the quarter preceding.
(G) Nine percent of the annual projected insurance premium tax amount shall be transferred into the Capital Projects Fund of the City and used specifically for street and road maintenance, improvements and repairs.
(Ord. O-2007-014, passed 9-24-2007; Am. Ord. O-2012-007, passed 3-12-2012)