58.1-2501 - Levy of license tax.
§ 58.1-2501. Levy of license tax.
A. For the privilege of doing business in the Commonwealth, there is herebylevied on every insurance company defined in § 38.2-100 which issues policiesor contracts for any kind of insurance classified and defined in §§ 38.2-102through 38.2-134 and on every corporation which issues subscription contractsfor any kind of plan classified and defined in §§ 38.2-4201 and 38.2-4501, anannual license tax as follows:
1. For any kind of insurance classified and defined in §§ 38.2-109 through38.2-134 or Chapters 44 (§ 38.2-4400 et seq.) and 61 (§ 38.2-6100 et seq.) ofTitle 38.2, except workers' compensation insurance on which a premium tax isimposed under the provisions of § 65.2-1000, such company shall pay a tax oftwo and three-fourths percent of its subscriber fee income or direct grosspremium income on such insurance for each taxable year through 1988. Fortaxable year 1989 and each taxable year thereafter, such company shall pay atax of two and one-fourth percent of its subscriber fee income or directgross premium income on such insurance.
2. For policies or contracts for life insurance as defined in § 38.2-102,such company shall pay a tax of two and one-fourth percent of its directgross premium income on such insurance. However, with respect to premiumspaid for additional benefits in the event of death, dismemberment or loss ofsight by accident or accidental means, or to provide a special surrendervalue, special benefit or an annuity in the event of total and permanentdisability, the rate of tax shall be two and three-fourths percent for eachtaxable year beginning January 1, 1987, through December 31, 1988, and twoand one-fourth percent for taxable year beginning January 1, 1989, and eachtaxable year thereafter.
3. For policies or contracts providing industrial sick benefit insurance asdefined in § 38.2-3544, such company shall pay a tax of one percent of itsdirect gross premium income on such insurance. No company, however, doingbusiness on the legal reserve plan, shall be required to pay any licenses,fees or other taxes in excess of those required by this section on such partof its business as is industrial sick benefit insurance as defined in §38.2-3544; but any such company doing business on the legal reserve planshall pay on all industrial sick benefit policies or contracts on which thesick benefit portion has been cancelled as provided in § 38.2-3546, or whichprovide a greater death benefit than $250 or a greater weekly indemnity than$10, and on all other life, accident and sickness insurance, the same licenseor other taxes as are required by this section.
4. For subscription contracts for any kind of plan classified and defined in§ 38.2-4201 or § 38.2-4501, such corporation shall pay a tax of two andone-fourth percent of its direct gross subscriber fee income derived fromsubscription contracts issued to primary small groups as defined in §38.2-3431 and three-fourths of one percent of its direct gross subscriber feeincome derived from other subscription contracts for taxable year 1997. Foreach taxable year thereafter, such corporation shall pay a tax ofthree-fourths of one percent of its direct gross subscriber fee incomederived from subscription contracts issued to individuals and from openenrollment contracts as defined in § 38.2-4216.1, and two and one-fourthpercent of its direct gross subscriber fee income derived from othersubscription contracts. The declaration of estimated tax pursuant to thissubsection shall commence on or before April 15, 1988.
B. Notwithstanding any other provisions of this section, any domesticinsurance company doing business solely in the Commonwealth which is purelymutual, has no capital stock and is not designed to accumulate profits forthe benefit of or pay dividends to its members, and any domestic insurancecompany doing business solely in the Commonwealth, with a capital stock notexceeding $25,000 and which pays losses with assessments against itspolicyholders or members, shall pay an annual license tax of one percent ofits direct gross premium income.
(Code 1950, §§ 58-490, 58-491, 58-492, 58-501; 1952, c. 190; 1968, c. 13;1978, c. 658; 1984, c. 675; 1987, cc. 565, 655; 1997, cc. 807, 913; 2004, c.668.)