TN Insurance Bulletin (1994-06-20): Premium Tax Changes

NED McWHERTER GOVERNOR TO: FROM: RE: DATE: STATE OF TENNESSEE DEPARTMENTOFCOMMERCEANDINSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37243 B 0 L L E T I N Domestic and Foreign Insurance Companies Allan S. Curtis Commissioner Premium Tax Changes June 20, 1994 ALLAN S. CURTIS COMMISSIONER Public Chapter 770 which was passed during the 1994 legislative session requires certain changes in the premium tax rates. The effect of this law is to adjust the premium tax paid by foreign life insurance companies for five (5) calendar years subsequent to 1995 by decreasing rates to 1.75% from the present 2% on gross premium receipts. For the 1994 and 1995 calendar years, foreign life insurance companies shall pay a tax equal to two percent (2%) of gross premiums received from citizens of and residents of the state during those years, the final payment of such tax being due on March 1, 1995 for the 1994 calendar year, and on March 1, 1996 for the 1995 calendar year. For the same period of time the domestic life insurance companies shall pay a tax equal to one and three-fourths percent ( 1. 75%) of gross premiums received from citizens and residents of this state. For the five ( 5) subsequent calendar years, foreign life insurance companies shall pay a tax equal to the following percentages of gross premiums received from citizens and residents of this state during each calendar year, the final payment of such tax being due on March 1 of each year following the year during which the premiums are received: CALERDAR YEAR TAX RATE FINAL PAYMENT DUE 1996 1. 95% March 1, 1997 1997 1.90% March 1, 1998 1998 1.85% March 1, 1999 1999 1. 80% March 1, 2000 2000 1. 75% March 1, 2001 For all succeeding calendar years, foreign life insurance companies shall pay a tax equal to one and three-fourths percent (1.75%) of gross premiums received from citizens and residents of this state. If you have any questions regarding not hesitate to contact Sharon K. Commissioner, at (615) 741-2176. ASC:SKR:MC this matter, please do Roberson, Assistant -""T