56-13-128 - Tax on premiums collected Exemptions Penalties.
56-13-128. Tax on premiums collected Exemptions Penalties.
(a) All captive insurance companies doing business in this state shall pay to the department a tax on the gross amount of all premiums collected or contracted for on policies or contracts of insurance covering property or risks in this state, and on risks and property situated in any other state in which the insurer is not licensed and upon which no premium tax is otherwise paid or payable during the year ending December 31 next preceding, after deducting from the gross amount of premiums subject to the tax the amount received as reinsurance premiums on business in the state and the amounts paid to policyholders as return premiums, which include dividends on unabsorbed premiums or premium deposits returned or credited to policyholders. All premium taxes paid into the department under this chapter shall be held by the commissioner as expendable receipts for the purpose of administering this chapter.
(b) The rate of tax shall be one percent (1%).
(c) The taxes provided for in this section shall constitute all taxes collectible under the laws of this state from the captive insurance companies, and no other occupation tax or other taxes shall be levied or collected from any captive insurance company by the state or any county, city, or municipality within this state, except ad valorem taxes on real and personal property used in the production of income.
(d) The taxes provided for in this section shall be due and payable on March 1 and September 1 in each year. Any company failing or refusing to render a tax statement and information or to pay taxes as specified in this section shall be subject to § 56-4-216.
(e) Nothing in this section shall be construed to provide an exemption from the sales and use tax imposed by title 67, chapter 6.
[Acts 1978, ch. 616, § 29; T.C.A., § 56-4528; Acts 2005, ch. 499, § 25.]