§ 47-2608. Rates on insurance companies; exceptions; marine insurance excluded; payment schedule; revocation of certificate of authority for failure to pay tax.
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Current through October 23, 2012
(a)(1) Except as provided in paragraph (1A) of this subsection, all such companies, including companies which issue annuity contracts, shall also pay to the District of Columbia, for each calendar year, a sum of money as taxes equal to 2% of their policy and membership fees and net premium receipts or consideration received in such calendar year on all insurance and annuity contracts on risks in the District of Columbia. Such tax shall be in lieu of all other taxes except:
(A) Taxes upon real estate; and
(B) Fees and charges provided for by the insurance laws of the District including amendments made to such laws by this chapter.
(1A)(A) All companies that issue contracts of insurance against accident and loss of health shall pay to the District of Columbia, for each calendar year, a sum of money as taxes equal to 2% of their policy and membership fees and net premium receipts or consideration received in that calendar year on all policies or contracts in the District of Columbia. Such tax shall be in lieu of all other taxes except:
(i) Taxes upon real estate; and
(ii) Fees and charges provided for by the insurance laws of the District.
(B) This paragraph shall apply as of October 1, 2008.
(2) Net premium receipts or consideration received means gross premiums or consideration received, not including premiums received in connection with a tax exempt "pension business" as defined in section 1012(c)(4)(D) of the Tax Reform Act of 1986 (26 U.S.C. § 833, note), by a corporation referred to in section 1012(c)(4)(B) of the Tax Reform Act of 1986, less the sum of the following:
(A) Premiums received for reinsurance assumed and premiums or consideration returned on policies or contracts cancelled or not taken; and
(B) Dividends paid in cash or used by the policyholders in payment of renewal premiums.
(C) All premiums received from policies or contracts issued in connection with a pension, annuity, profit-sharing plan or individual retirement annuity qualified or exempt under section 401, 403, 404, 408, or 501(a) of the Internal Revenue Code, or successor provisions.
(a-1) A hospital service corporation or medical service corporation may deduct, in an amount not to exceed $550,000, the corporation's payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with the provisions of Chapter 5 of Title 31 from the amount otherwise due by the corporation under subsection (a) of this section.
(b)(1) The tax imposed by subsection (a) of this section shall, for each calendar year prior to calendar year 1977, be paid before the first day of March of the next succeeding calendar year.
(2) Except as provided in paragraph (3) of this subsection, the tax imposed for calendar year 1999, and for each calendar year thereafter, shall be paid on or before the first day of June of the calendar year in which the income to be taxed is received and before the first day of March following the close of each calendar year. The June payment shall be an amount equal to 1/2 of the total premium tax liability determined for the preceding calendar year. In accordance with rules prescribed by the Mayor, each company shall determine its total tax liability for each calendar year and pay the remainder, if any, on or before the first day of March following the close of each calendar year. Overpayments of tax may be refunded to the company or credited to the company's next installment payment, at the election of the company.
(3) The installment payment provision of subsection (b)(2) of this section shall not apply in the case of any company having a tax liability for the preceding calendar year less than $1,000. In such cases the tax shall be paid on or before the first day of March following the close of the calendar year.
(c) The certificate of authority of any company may be revoked for failure to pay the tax required by this chapter.
(Aug. 17, 1937, 50 Stat. 676, ch. 690, title II, § 6; May 16, 1938, 52 Stat. 358, ch. 223, § 2; Apr. 19, 1977, D.C. Law 1-124, title X, § 1000, 23 DCR 8749; Sept. 23, 1977, D.C. Law 2-19, § 3, 24 DCR 3338; renumbered as § 8, Sept. 26, 1984, D.C. Law 5-113, § 401, 31 DCR 3974; Sept. 10, 1992, D.C. Law 9-145, § 111, 39 DCR 4895; Mar. 17, 1993, D.C. Law 9-224, § 2, 40 DCR 592; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 29, 1998, D.C. Law 12-86, § 202, 45 DCR 1172; Apr. 20, 1999, D.C. Law 12-264, § 52(q), 46 DCR 2118; Mar. 2, 2007, D.C. Law 16-192, § 5013(b)(2), 53 DCR 6899; Aug. 16, 2008, D.C. Law 17-219, § 5055(b), 55 DCR 7598; Feb. 4, 2010, D.C. Law 18-104, § 4(c), 56 DCR 9182; Sept. 24, 2010, D.C. Law 18-223, § 2183, 57 DCR 6242.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-2608.
1973 Ed., § 47-1806.
Effect of Amendments
D.C. Law 16-192 added subsec. (a-1).
D.C. Law 17-219, in subsec. (a), inserted "Except as provided in paragraph (1A)," in par. (1), and added par. (1A).
D.C. Law 18-104, in subsec. (a-1), substituted "payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with the provisions of Chapter 5 of Title 31" for "payment to the rate stabilization fund under § 31- 3514".
D.C. Law 18-223, in subsec. (a)(1), substituted "2%" for "1.7%".
Temporary Amendments of Sections
For temporary (225 day) amendment of section, see § 111 of Omnibus Budget Support Temporary Act of 1992 (D.C. Law 9-134, July 23, 1992, law notification 39 DCR 5815).
For temporary (225 day) amendment to § 203 of D.C. Law 12-86, see § 502 of Health Insurance Portability and Accountability Federal Law Conformity, Motor Vehicle Insurance, Regulatory Reform, and Consumer Law Temporary Amendment Act of 1998 (D.C. Law 12-154, September 18, 1998, law notification 45 DCR 6951).
Temporary Amendments of Section
Section 4(c) of D.C. Law 18-134 substituted "payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with the provisions of Chapter 5 of Title 31" for "payment to the rate stabilization fund under § 31-3514".
Section 6(b) of D.C. Law 18-134 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary delay of the provisions of § 203 of the Omnibus Regulatory Reform Amendment Act of 1998 (D.C. Law 12-86), see § 502 of the Health Insurance Portability and Accountability Federal Law Conformity Emergency Amendment Act of 1998 (D.C. Act 12-339, May 4, 1998, 45 DCR 2947) and § 502 of the Health Insurance Portability and Accountability Federal Law Conformity, Motor Vehicle Insurance, Regulatory Reform, and Consumer Law Congressional Review Emergency Amendment Act of 1998 (D.C. Act 12-429, August 6, 1998, 45 DCR 5890).
For temporary amendment of section, see § 3(a) of the Child Development Home Promotion Legislative Review Emergency Amendment Act of 1998 (D.C. Act 12-604, January 20, 1999, 45 DCR 1281) and § 3(a) of the Child Development Home Promotion Emergency Amendment Act of 1998 (D.C. Act 12-444, October 9, 1998, 45 DCR 7304).
For temporary amendment of section, see § 2(a) of the Regulatory Reform Tax Conformity Emergency Act of 1998 (D.C. Act 12-594, January 20, 1999, 45 DCR 1129), and § 2(a) of the Regulatory Reform Tax Conformity Congressional Review Emergency Act of 1999 (D.C. Act 13-42, March 31, 1999, 46 DCR 3621).
For temporary (90 day) amendment of section, see § 5013(b)(2) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 5013(b)(2) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16- 499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 5013(b)(2) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 4(c) of Hospital and Medical Services Corporation Regulatory Emergency Amendment Act of 2009 (D.C. Act 18- 277, January 11, 2010, 57 DCR 935).
For temporary (90 day) amendment of section, see § 2183 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
Legislative History of Laws
Law 1-124, the "Revenue Act For Fiscal Year 1978," was introduced in Council and assigned Bill No. 1-375, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on December 3, 1976 and December 17, 1976, respectively. Signed by the Mayor on January 25, 1977, it was assigned Act No. 1-226 and transmitted to both Houses of Congress for its review.
Law 2-19, the "Act to Provide Deductions for Deed Recordation Taxes and Motor Vehicle Fees and for Accelerated Payment of Taxes, Insurance Premium Receipts," was introduced in Council and assigned Bill No. 2-109, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on May 17, 1977 and May 31, 1977, respectively. Signed by the Mayor on June 21, 1977, it was assigned Act No. 2-48 and transmitted to both Houses of Congress for its review.
For legislative history of D.C. Law 5-113, see Historical and Statutory Notes following § 47-2601.
Law 9-145, the "Omnibus Budget Support Act of 1992," was introduced in Council and assigned Bill No. 9-222, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 12, 1992, and June 2, 1992, respectively. Approved without the signature of the Mayor on June 22, 1992, it was assigned Act No. 9-225 and transmitted to both Houses of Congress for its review. D.C. Law 9-145 became effective on September 10, 1992.
Law 9-224, the "Premium Receipts Tax Clarification Amendment Act of 1992," was introduced in Council and assigned Bill No. 9-558, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on December 1, 1992, and December 15, 1992, respectively. Signed by the Mayor on January 4, 1993, it was assigned Act No. 9-355 and transmitted to both Houses of Congress for its review. D.C. Law 9-224 became effective on March 17, 1993.
Law 12-86, the "Omnibus Regulatory Reform Amendment Act of 1998," was introduced in Council and assigned Bill No. 12-458, which was referred to the Committee on Public Works and the Environment and the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on December 19, 1997, and January 6, 1998, respectively. Signed by the Mayor on January 21, 1998, it was assigned Act No. 12-256 and transmitted to both Houses of Congress for its review. D.C. Law 12-86 became effective on April 29, 1998.
For legislative history of D.C. Law 12-264, see Historical and Statutory Notes following § 47-2608.01.
Law 16-192, the "Fiscal Year Budget Support Act of 2006", was introduced in Council and assigned Bill No. 16-679, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 9, 2006, and June 6, 2006, respectively. Signed by the Mayor on August 8, 2006, it was assigned Act No. 16-476 and transmitted to both Houses of Congress for its review. D.C. Law 16-192 became effective on March 2, 2007.
For Law 17-219, see notes following § 47-318.05a.
Law 18-104, the "Hospital and Medical Services Corporation Regulatory Amendment Act of 2009", was introduced in Council and assigned Bill No. 18-401, which was referred to the Committee on Public Services and Consumer Affairs. The bill was adopted on first and second readings on October 6, 2009, and November 3, 2009, respectively. Signed by the Mayor on November 30, 2009, it was assigned Act No. 18-239 and transmitted to both Houses of Congress for its review. D.C. Law 18-104 became effective on February 4, 2010.
For Law 18-223, see notes following § 47-355.05.
Miscellaneous Notes
Mayor authorized to issue rules: See notes to § 47-2601.
Section 2184 of D.C. Law 18-223 provides:
"Sec. 2184. Sunset.
"This subtitle shall expire on September 30, 2015."
