77-908 Insurance companies; tax on gross premiums; rate; exceptions.
77-908. Insurance companies; tax on grosspremiums; rate; exceptions.Every insurance company organizedunder the stock, mutual, assessment, or reciprocal plan, except fraternalbenefit societies, which is transacting business in this state shall, on orbefore March 1 of each year, pay a tax to the director of one percent of thegross amount of direct writing premiums received by it during the precedingcalendar year for business done in this state, except that (1) for group sicknessand accident insurance the rate of such tax shall be five-tenths of one percent and (2) for property and casualty insurance,excluding individual sickness and accident insurance, the rate of such taxshall be one percent. A captive insurer authorized under the Captive InsurersAct that is transacting business in this state shall, on or before March 1of each year, pay to the director a tax of one-fourth of one percent of thegross amount of direct writing premiums received by such insurer during thepreceding calendar year for business transacted in the state. The taxablepremiums shall include premiums paid on the lives of persons residing in thisstate and premiums paid for risks located in this state whether the insurancewas written in this state or not, including that portion of a group premiumpaid which represents the premium for insurance on Nebraska residents or riskslocated in Nebraska included within the group when the number of lives inthe group exceeds five hundred. The tax shall also apply to premiums receivedby domestic companies for insurance written on individuals residing outsidethis state or risks located outside this state if no comparable tax is paidby the direct writing domestic company to any other appropriate taxing authority.Companies whose scheme of operation contemplates the return of a portion ofpremiums to policyholders, without such policyholders being claimants underthe terms of their policies, may deduct such return premiums or dividendsfrom their gross premiums for the purpose of tax calculations. Any such insurancecompany shall receive a credit on the tax imposed as provided in the CommunityDevelopment Assistance Act. SourceLaws 1951, c. 256, § 2, p. 878; Laws 1984, LB 372, § 13; Laws 1986, LB 1114, § 10; Laws 1989, LB 92, § 275; Laws 1992, LB 1063, § 91; Laws 1992, Second Spec. Sess., LB 1, § 64; Laws 2001, LB 433, § 1; Laws 2002, Second Spec. Sess., LB 9, § 3; Laws 2006, LB 1248, § 83; Laws 2007, LB117, § 53; Laws 2007, LB367, § 5; Laws 2010, LB698, § 3.Effective Date: March 4, 2010 Cross ReferencesCaptive Insurers Act, see section 44-8201.Community Development Assistance Act, see section 13-201. AnnotationsConsiderations received for annuity contracts are taxable. Bankers Life Ins. Co. v. Laughlin, 160 Neb. 480, 70 N.W.2d 474 (1955).