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28	28	STATE OF OKLAHOMA
29	29
30	30	2nd Session of the 58th Legislature (2022 )
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32	32	HOUSE BILL 3427 By: Kerbs
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34	34
35	35
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38	38	AS INTRODUCED
39	39
40	40	An Act relating to insurance premium tax ; amending 36
41	41	O.S. 2021, Section 624, which relates to payment of
42	42	fees and taxes; exempting member ship fees from tax;
43	43	and providing an effective date .
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48	48	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
49	49	SECTION 1. AMENDATORY 36 O.S. 2021, Section 624, is
50	50	amended to read as follows:
51	51	Section 624. A. Every insurance company, copartnership,
52	52	insurance association, interinsurance exchange, person, insurer,
53	53	nonprofit hospital se rvice and medical indemnity corporation, or
54	54	health maintenance organization doing business in this state in the
55	55	execution or exchange of contrac ts of insurance, indemnity or health
56	56	maintenance services, or as an insurance company of any nature or
57	57	character whatsoever, hereinafter referred to in this article as an
58	58	insurance company or company, shall annually, on or before the first
59	59	day of March, report under oath of the president or secretary or
60	60	other chief officer of such company to the Insurance Commission er
61	61	the total amount of direct written premiums, membership,
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88	88	application, policy and/or registration fees charged during the
89	89	preceding calendar y ear, or since the last return of such direct
90	90	written premiums, membership, application, policy and/or
91	91	registration fees was made by such company, from insurance of every
92	92	kind upon persons or on the lives of persons resident in this state,
93	93	or upon real and personal property located within this state, and/or
94	94	upon any other risks insured within this state , provided, that with
95	95	respect to the tax payable annually, considerations received for
96	96	annuity contracts and payments received by a health maintenance
97	97	organization from the Secretary of Health and Human Services
98	98	pursuant to a contract issued under the provisions of 42 U.S.C.,
99	99	Section 1395mm(g) shall no longer be deemed to be premiums for
100	100	insurance and shall no longer be subject to the tax imposed by this
101	101	section. Every such company shall, at the same time, pay to the
102	102	Insurance Commissioner:
103	103	1. An annual license fee as prescribed by Section 321 of this
104	104	title; and
105	105	2. An annual tax on all of the direct written premiums after
106	106	all returned premiums are deducted, a nd on all membership,
107	107	application, policy and/or registration fees, installment and/or
108	108	finance fees or charges collected thereby, for the privileges of
109	109	having written, continued and/or serviced insurance on lives,
110	110	property and/or other risks in this state and of having made and
111	111	serviced investments therein during the then expiring license year
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138	138	except premiums or fe es paid by any county, city, town or school
139	139	district funds or by their duly constituted authorities performing a
140	140	public service organized pursuan t to Sections 1001 through 1008 of
141	141	Title 74 of the Oklahoma Statutes, or Sections 176 through 180.4 of
142	142	Title 60 of the Oklahoma Statutes. Provided, no deduction shall be
143	143	made from premiums for dividends paid to policyholders. Except as
144	144	set forth in this paragraph, the rate of taxation for all entities
145	145	subject to the tax shall be two and twenty -five one-hundredths
146	146	percent (2.25%). If any insurance company or other entity liable
147	147	for the taxes levied pursuant to the provisions of this section
148	148	fails to remit such taxes in a timely manner, it shall remain liable
149	149	therefor together with interest thereon at an annual rat e equal to
150	150	the average United States Treasury Bill rate of the preceding
151	151	calendar year as certified by the State Treasurer on the first
152	152	regular business day in January of each year, plus four percentage
153	153	points.
154	154	a. The rate of taxation for all life insuranc e policies
155	155	insuring the life of an employee or director for the
156	156	benefit of the employer or a trust sponsored by the
157	157	employer, which is purchased by the employer or trust
158	158	sponsored by the employer for the benefit of its
159	159	employees, shall be computed for each policy at the
160	160	rate of:
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187	187	(1) two and twenty-five one-hundredths percent
188	188	(2.25%) of policy year premium up to One Hundred
189	189	Thousand Dollars ($100,00 0.00), and
190	190	(2) one-tenth of one percent (1/10 of 1%) of policy
191	191	year premium exceeding One Hundred Thousand
192	192	Dollars ($100,000.00).
193	193	b. Premiums on which taxes are paid under division (2) of
194	194	subparagraph a of this paragraph are not subject to
195	195	Section 628 of this title. The Commissioner shall
196	196	promulgate rules regarding the sale of life insurance
197	197	policies subject to di vision (2) of subparagraph a of
198	198	this paragraph.
199	199	B. For all insurance companies or other entities taxed pursuant
200	200	to this section, the annual lice nse fee and tax and all required
201	201	membership, application, policy, registration, and agent appointment
202	202	fees shall be in lieu of all other state taxes or fees, except those
203	203	taxes and fees provided for in the Insurance Code, and the taxes and
204	204	fees of any subdivision or municipality of the state, except ad
205	205	valorem taxes and the tax required to be paid pursuant to Secti on
206	206	50001 of Title 68 of the Oklahoma Statutes. Provided, such license
207	207	fee, tax and membership, application, policy, registration, and
208	208	appointment fees shall be in lieu of any and all ad valorem taxes
209	209	levied on intangible personal property. Any company, e xcept health
210	210	maintenance organizations, failing to make such returns and payments
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237	237	promptly and correctly shall forfeit and pay to the Insurance
238	238	Commissioner, in addition to the amount of the taxes and fees and
239	239	interest, the sum of Five Hundred Dollars ($50 0.00) or an amount
240	240	equal to one percent (1%) of the unpaid amount, whichever is
241	241	greater; and the company so failing or neglecting for sixty (60)
242	242	days shall thereafter be debarred from transacting any business of
243	243	insurance in this state until the taxes, fee s and penalties are
244	244	fully paid, and the Insurance Commissioner shall revoke the license
245	245	or certificate of authority granted to the agent or agent s of that
246	246	company to transact business in this state. Provided, that when any
247	247	such insurance company, copartne rship, insurance association,
248	248	interinsurance exchange, person, insurer, or nonprofit hospital
249	249	service and indemnity corporation, applies for the first time for a
250	250	license to do business in Oklahoma, it shall, at the time of making
251	251	such application, pay a li cense fee as prescribed by Section 1425
252	252	1435.23 of this title, and, on or before the first day of March,
253	253	following, pay the premium tax, membership, application, policy,
254	254	registration, and agent appointment fees, as hereinbefore provided.
255	255	Such license fee, tax and membership, application, policy,
256	256	registration, and appointment fees shall be in lieu of all other
257	257	state taxes or fees, except those taxe s and fees provided for in the
258	258	Insurance Code, and the taxes and fees of any subdivision or
259	259	municipality of the state, except ad valorem taxes and the tax
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286	286	required to be paid pursuant to Section 50001 of Title 68 of the
287	287	Oklahoma Statutes.
288	288	C. Any health maintenance organization failing to file premium
289	289	tax returns and payments promptly and correctly shall forfeit an d
290	290	pay to the Insurance Commissioner, in addition to the amount of the
291	291	taxes, the sum of Five Hundred Dollars ($500.00) or an amount equal
292	292	to one percent (1%) of the unpaid amount, whichever is greater. Any
293	293	health maintenance organization failing or neglec ting to pay the tax
294	294	and penalty shall be debarred from operating in this state and the
295	295	Insurance Commissioner shall revoke the license of the hea lth
296	296	maintenance organization, until such taxes and penalties are fully
297	297	paid.
298	298	SECTION 2. This act shall become effective November 1, 2022.
299	299
300	300	58-2-8658 AQH 11/29/21

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3427 Compare Versions