WEST virginia legislature
2019 regular session
House Bill 2400
By Delegate Westfall, Nelson and Williams
[Introduced January 14, 2019; Referred
to the Committee on Banking and Insurance then Finance.]
A BILL to amend and reenact §33-3-15 of the Code of West Virginia, 1931, as amended, relating to eliminating taxation on annuity considerations collected and received by a life insurer.
Be it enacted by the Legislature of West Virginia:
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-15. Annuity tax.
(a) The tax imposed by this section is discontinued for the taxable years beginning on or after January 1, 2019.
(a) (b) Every life insurer transacting
insurance in West Virginia shall make a return to the commissioner annually on
a form prescribed by the commissioner, on or before March 1, under the oath of
its president or secretary, of the gross amount of annuity considerations
collected and received by it during the previous calendar year on its annuity
business transacted in this state and stating the amount of tax due under this
section, together with payment in full for the tax due. The tax is the sum
equal to one per centum of the gross amount of the annuity considerations, less
annuity considerations returned and less termination allowances on group annuity
contracts. All the taxes received by the commissioner shall be paid into the
Insurance Tax Fund created in §33-3-14(b) of this code. In the case of funds
accepted by a life insurer under an agreement which provides for an
accumulation of money to purchase annuities at future dates, annuity
considerations may be either considered by the life insurer to be collected and
received upon receipt or upon actual application to the purchase of annuities.
Any earnings credited to money accumulated while under the latter alternative
will also be considered annuity considerations. For purposes of this election,
the alternative which the life insurer elected to file its tax return for the
2001 tax year or which it elects when it enters the state, whichever is later,
shall be considered the life insurer's election between these alternatives. A
life insurer filing a year 2001 tax return shall provide written notice to the
commissioner of its election within ninety days of the effective date of this
enactment. Otherwise, a life insurer shall provide written notice to the
commissioner of its election within 90 days after it enters the state.
Thereafter, a life insurer may not change its election without the consent of
the Insurance Commissioner. The Insurance Commissioner may develop forms to
assure compliance with this subsection. (b) The amendment to this section enacted during the
regular session of the Legislature in the year 1998 is effective on July 1,
NOTE: The purpose of this bill is to eliminate taxation on annuity considerations collected and received by a life insurer.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.