Sec. 38a-91nn. Premium receipts tax.
Sec. 38a-91nn. Premium receipts tax. (a) Each captive insurance company shall
pay to the Commissioner of Revenue Services, in the month of February of each year,
a tax at the rate of thirty-eight hundredths of one per cent on the first twenty million
dollars and two hundred eighty-five thousandths of one per cent on the next twenty
million dollars and nineteen hundredths of one per cent on the next twenty million dollars
and seventy-two thousandths of one per cent on each dollar thereafter on the direct
premiums collected or contracted for on policies or contracts of insurance written by the
captive insurance company during the year ending December thirty-first next preceding,
after deducting from the direct premiums subject to the tax the amounts paid to policyholders as return premiums which shall include dividends on unabsorbed premiums or
premium deposits returned or credited to policyholders, except that no tax shall be due
or payable as to considerations received for annuity contracts.
(b) The annual minimum aggregate tax to be paid by a captive insurance company
calculated under subsections (a) and (b) of this section shall be seven thousand five
hundred dollars, and the annual maximum aggregate tax shall be two hundred thousand
dollars.
(c) A captive insurance company failing to file returns as required in this section
or failing to pay within the time required all taxes assessed by this section shall be subject
to penalty under section 12-229.
(d) Two or more captive insurance companies under common ownership and control shall be taxed as though they were a single captive insurance company.
(e) For the purposes of this section common ownership and control means:
(1) In the case of stock corporations, the direct or indirect ownership of eighty per
cent or more of the outstanding voting stock of two or more corporations by the same
shareholder or shareholders; and
(2) In the case of mutual or nonprofit corporations, the direct or indirect ownership
of eighty per cent or more of the surplus and the voting power of two or more corporations
by the same member or members.
(f) The tax provided for in this section shall constitute all taxes collectible under
the laws of this state from any captive insurance company, 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 taxes on real and personal property used in the production of income.
(g) The tax provided for in this section shall be calculated on an annual basis, notwithstanding policies or contracts of insurance or contracts of reinsurance issued on a
multiyear basis. In the case of multiyear policies or contracts, the premium shall be
prorated for purposes of determining the tax under this section.
(P.A. 08-127, S. 14.)
History: P.A. 08-127 effective January 1, 2009.