Senate Bill No. 1002
(By Senators Tomblin, Mr. President, and Buckalew,
By Request of the Executive)
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[Introduced April 20, 1997; referred to the
Committee on Finance.]
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A BILL to amend article twelve, chapter twenty-nine of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
thirteen, relating to the board of risk and insurance
management; exempting certain entities from payment of
premium taxes; and requiring payments by spending units to
the board.
Be it enacted by the Legislature of West Virginia:
That article twelve, chapter twenty-nine of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
thirteen, to read as follows:
§29-12-13. Premium Tax Liability.
Notwithstanding any other provision of this code to the
contrary, the amount of any gross direct premiums attributable to
a policy or contract of insurance entered into with the board of risk and insurance management shall be separately reported on the
annual financial statement of the insurer. These gross direct
premiums so reported may not be subject to the tax imposed on
gross direct premiums pursuant to article three, chapter thirty- three of this code. The provisions of this section shall be
effective upon passage and shall apply to any amount of premium
tax owed and not yet paid upon the effective date of this
section. When any spending unit makes payment to the board of
risk and insurance management for payment of premiums
attributable to a policy or contract of insurance after the
effective date of this section, an amount equal to the amount of
gross premium tax attributable to the amount of the premium shall
be paid to the board: Provided, That these amounts shall be
deposited in a special revenue account hereby created known as
the "Premium Tax Savings Fund". Expenditures from the fund shall
not be made from collections but shall only be made in accordance
with appropriation by the Legislature.
NOTE: The purpose of this bill is to clarify that insurers
doing business with the board of risk and insurance management
are not subject to the premium tax on gross direct premiums
received from the board and requiring certain payments to the
board.