There is hereby imposed on each insurance company a license fee 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) 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) (1) 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 Tasked | |
Initial Rate | 7% | 7% | 7% | 7% | 7% | 5% | 7% |
(2) 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 is hereby imposed upon each insurance company with respect to premiums equal to the amount by which the credit for city LGPT allowable under KRS 91A.080(12) against the Metro LGPT exceeds the base fee under division (A) above.
(D) Example. The city currently imposes 7% tax on casualty liability premiums. Metro currently imposes a 5% LGPT on casualty liability premiums. Assume Metro hereafter adopts an ordinance increasing its countywide LGPT rate on casualty liability premiums to 10% and provides that ordinance to the Kentucky Commissioner of Insurance on or before March 23, 2019 (100 days prior to the July 1, 2019 effective date) so that the increase in the Metro LGPT rate will be effective July 1, 2019. Beginning July 1, 2019, the city LGPT rate on casualty liability premiums will also be a total of 10%.
(Ord. 574-2019, passed 3-18-19)