(A) 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:
(1) 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.
(2) Except as otherwise provided in division (A)(3) 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 | 7% | 7% | 7% | 7% | 0% | 7% | 7% |
The base fee shall not apply to premiums exempted by state or federal law. | |||||||
(3) If the Louisville Metro LGPT is raised in excess of the city’s base fee, an additional license fee is hereby imposed by the city, within each class of insurance listed in division (A)(2) above, equal to the amount by which the credit for the city LGPT is allowable under KRS 91A.080(12), against the offsetting Metro LGPT, except for health, which is not taxed by city’s base fee.
(B) Fees to be paid to the General Revenue Fund. The license fee or tax established by this chapter is imposed and levied for the purpose of general revenue funds and shall be paid into the General Fund of the city.
(C) The license fee or tax imposed by a city upon each insurance company with respect to life insurance policies may be based upon the first year’s premiums and 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.
(Ord. 5 series 2023-2024, passed 3-4-2024)