The Kentucky Department of Insurance has issued a bulletin announcing that the monthly premium surcharge tax is increasing from 1.5% to 1.8% effective April 1, 2010.
The monthly premium surcharge tax is required to be paid by all domestic, foreign, or alien insurers, other than life and health insurers, and it will increase from $1.50 to $1.80 per $100 of premiums, assessments, or other charges for insurance coverage provided to policyholders on risks located in Kentucky. The adjustment to the premium surcharge rate will be effective and applied to policies issued or renewed on or after April 1, 2010.
The exceptions listed in KRS 136.392(5) remain effect. In addition:
• Municipal premium taxes imposed pursuant to KRS 91A are not to be included in calculation of the premium surcharge;
• Life and health insurers are not subject to the premium surcharge imposed by KRS 136.392; and
• Pursuant to KRS 342.122(1)(e), the premium surcharge shall not be imposed on Workers’ Compensation premium.
3 comments:
Just to clarify, the commissioner of the Kentucky Department of Revenue notifies the Department of Insurance commissioner when the premium surcharge tax is to be increased. The Department of Insurance is responsible for notifying insurers but it is not accurate to say "it (meaning DOI) is increasing" the tax. The decision to increase the tax is made by Revenue.
Noted - blog has been updated - NAPSLO
It doesn't matter if your best friend or your worst enemy pokes you in the eye...ya still got poked in the eye. Instead of worrying about ridiculous semantics, try coming up with a user-friendly, all-in-one tax system in KY that doesn't require an accounting degree to follow. So much paper to file, so many entities to address. There are software programs that allow one set of entries...check out the Florida surplus lines website. Enter your numbers ONCE and all calculations are made for you, followed by printable forms for each entity that must be paid. The digital age was supposed to make life easier. Sheeeeeeesh.
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