WEST virginia Legislature

2016 regular session

Introduced

Senate Bill 566

By Senator Ferns

[Introduced February 10, 2016;
Referred to the Committee on Health and Human Resources.]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §33-3-34, relating to creating a new tax on the insurance reserves held by certain accident and sickness insurance carriers operating in West Virginia; and authorizing emergency rules.

Be it enacted by the Legislature of West Virginia:

That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §33-3-34, to read as follows:

ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.

§33-3-34.  Additional tax on reserve balances held by certain not- for- profit private accident and sickness insurance carriers.

For the purpose of providing additional revenue for the State General Revenue Fund, effective July 1, 2016, there is imposed, in addition to all other taxes imposed by this article, an additional tax equal to two and one half percent of the reserve balance held by any not-for-profit, private accident and sickness insurance carrier operating in West Virginia and regulated by the commissioner under this article.

All moneys received from the additional tax imposed by this section, less deductions allowed by this article for refunds and for costs of administration, shall be received by the commissioner and shall be paid by him or her into the State Treasury for the benefit of the state fund.

The commissioner shall promulgate emergency rules pursuant to the provisions of article three, chapter twenty-nine-a to effectuate the implementation of this section.

NOTE: The purpose of this bill is to create a new tax on the insurance reserves held by certain insurance providers.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.