County and Municipal Corporation Taxes on Life Insurance Companies

  1. Law
  2. Georgia Code
  3. Insurance
  4. Fees and Taxes
  5. County and Municipal Corporation Taxes on Life Insurance Companies

Checkout our iOS App for a better way to browser and research.

  1. As used in this Code section, the term "life insurance company" means a company which is authorized to transact only the class of insurance designated in Code Section 33-3-5 as class (1).
  2. Life insurance companies are subject to county and municipal corporation taxes levied as follows:
    1. There is imposed a county tax for county purposes on each life insurance company doing business within the state, which tax shall be based solely upon gross direct premiums, as defined in Code Section 33-8-4, which are received during the preceding calendar year from policies insuring persons residing within the unincorporated area of the counties pursuant to the provisions of this Code section. The rate of such tax shall be 1 percent of such premiums, except that such tax shall not apply to the gross direct premiums of an insurance company which qualifies, pursuant to Code Section 33-8-5, for the reduction to one-half of 1 percent of the state tax imposed by Code Section 33-8-4. The tax imposed by this Code section shall not apply to annuity considerations; and
    2. Municipal corporations whose ordinances have been filed with the Commissioner are authorized to impose a tax on each life insurance company doing business within the state, which tax shall be based solely upon the gross direct premiums, as defined in Code Section 33-8-4, which are received during the preceding calendar year from policies insuring persons residing within the corporate limits of the municipal corporation pursuant to the provisions of this Code section; provided, however, that the rate of the tax may not exceed 1 percent of the premiums. The tax imposed shall not apply to annuity considerations.
    1. On March 1 of each year, each life insurance company shall file a certified return on a form prescribed by the Commissioner showing gross direct premiums received during the preceding calendar year that will appear in the company's certified annual statement.
    2. Reserved.
    3. On or before August 1 of each year, the Commissioner shall collect taxes imposed pursuant to subsection (b) of this Code section on behalf of counties and municipal corporations whose ordinances have been filed with the Commissioner. The tax collected for each year shall be based upon gross direct premiums written during the preceding calendar year. Penalty and interest as prescribed in subsection (d) of Code Section 33-8-6 shall be imposed for late payment, underpayment, or nonpayment of such taxes.
  4. Taxes imposed by subsection (b) of this Code section shall be allocated and distributed to counties and municipal corporations as follows:
    1. A portion of the total amount of life insurance premiums taxable by the state, exclusive of premiums collected by companies which qualify for the reduction to one-half of 1 percent of the state tax, shall be allocated to counties based upon the ratio that the total population of all unincorporated areas in the state bears to the total population in the state. The amount of the tax base so allocated to counties shall be taxed at the rate levied for county purposes. The tax shall be distributed to each county governing authority by the Commissioner based upon a fraction, the numerator of which is the population of the unincorporated area of that county and the denominator of which is the population of all unincorporated areas of the state; and
    2. A portion of the total amount of life insurance premiums taxable by the state shall be allocated to all municipal corporations based upon the ratio that the total population of all municipal corporations bears to the total state population. The amount of the tax base so allocated to municipalities shall be distributed to each municipal corporation based upon the fraction, the numerator of which is the population of that municipal corporation and the denominator of which is the population of all municipal corporations in the state. The amount of the tax base so distributed to each municipality shall be taxed at the rate levied by that municipality; and taxes levied by each municipal corporation shall be distributed based upon the tax rate levied by each such municipal corporation.
  5. On or before January 1 of the first year that the tax is levied, each municipal corporation levying the tax shall file with the Commissioner a certified copy of the pertinent parts of all ordinances and amendments thereto which impose the tax, and such filing shall be a condition to the validity and enforceability of such an ordinance. On or before February 1 of each year the Commissioner shall furnish a list of all municipal corporations levying the tax for that year to each life insurance company in the state.
  6. Life insurance companies may deduct from premium taxes otherwise payable to this state under Code Section 33-8-4, in addition to all credits and abatements allowed by law, the taxes imposed pursuant to subsection (b) of this Code section and paid to the Commissioner on behalf of any county and municipal corporation during the preceding calendar year.
  7. On or before October 15 of each year, the Commissioner shall distribute the taxes imposed by counties and municipal corporations which are actually remitted to and collected by the Commissioner. On or before October 15 of each year, the Commissioner shall distribute any delinquent taxes actually collected by the Commissioner for a previous year, exclusive of any interest or penalty on such delinquent taxes, which delinquent taxes have not previously been distributed.
  8. For purposes of this Code section, population shall be measured by the United States decennial census of 1990 or any future such census plus any corrections or revisions contained in official statements by the United States Bureau of the Census made prior to the first day of September immediately preceding the distribution of the proceeds of such taxes by the Commissioner and any additional official census data received by the Commissioner from the United States Bureau of the Census or its successor agency pertaining to any newly incorporated municipality. Such corrections, revisions, or additional data shall be certified to the Commissioner by the Office of Planning and Budget on or before August 31 of each year.

(Code 1933, § 56-1310.1, enacted by Ga. L. 1981, p. 380, § 2; Ga. L. 1983, p. 1595, § 2; Ga. L. 1984, p. 22, § 33; Ga. L. 1984, p. 1284, § 2; Ga. L. 1988, p. 13, § 33; Ga. L. 1988, p. 1581, § 1; Ga. L. 1994, p. 528, § 1; Ga. L. 2009, p. 652, § 2/HB 410; Ga. L. 2019, p. 337, § 1-43/SB 132.)

The 2019 amendment, effective July 1, 2019, substituted "March 1 of each year" for "March 1, 1984, and on that date in each subsequent year" in paragraph (c)(1); substituted "August 1 of each year" for "August 1, 1988, and on the same date in each subsequent year" at the beginning of paragraph (c)(3); in subsection (g), substituted "October 15 of each year" for "October 15, 1988, and on the same date in each subsequent year" in two places; deleted former subsection (h), which read: "Amounts collected by the Commissioner under or due under former Code Section 33-8-8.1 shall be collected and disbursed as provided in former Code Section 33-8-8.1."; and redesignated former subsection (i) as present subsection (h).

Cross references.

- Specific, business, and occupation taxes, T. 48, C. 13.

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1988, "United States Bureau of the Census" was substituted for "United States Census Bureau" in subsection (i) (now subsection (h)).

Editor's notes.

- Ga. L. 1983, p. 1595, § 5, not codified by the General Assembly, provided that that Act would apply to all tax years beginning on or after January 1, 1984.

Ga. L. 2009, p. 652, § 6(b)/HB 410, not codified by the General Assembly, provides, in part, that the amendment to this Code section "shall be applicable to all taxable years beginning on or after January 1, 2010".

Pursuant to its own terms, subsection (a.1), as added by Ga. L. 2009, p. 652, § 2/HB 410, concerning exemption from local premium taxes, was repealed effective January 1, 2015.

Law reviews.

- For article surveying developments in Georgia local government law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 187 (1981).

OPINIONS OF THE ATTORNEY GENERAL

Gross premium tax imposed by O.C.G.A. § 33-8-8.1 is applicable to all premiums received during calendar year 1981. 1981 Op. Att'y Gen. No. 81-108.

No credit for premium taxes paid directly to localities.

- In administering O.C.G.A. § 33-8-8.1, the Insurance Commissioner may not give credit for premium taxes paid by insurance companies directly to city and county governments. 1984 Op. Att'y Gen. No. 84-24.

Taxes based on pre-1991 contract year not prohibited by 5 U.S.C.

§ 8909(e). - County and municipal taxes otherwise properly assessed pursuant to O.C.G.A. § 33-8-8.1 based on a pre-1991 contract year (i.e., any contract year beginning before January 1, 1991) between an insurance company and the Federal Employees Health Benefits Fund are not prohibited by 5 U.S.C. § 8909(f) regardless of when such tax is, payable and/or collected. 1993 Op. Att'y Gen. No. 93-6.

Disbursement of proceeds.

- The premium tax imposed by O.C.G.A. § 33-8-8.1 is to be disbursed by the Insurance Commissioner in accordance with the formula set forth in subsection (f). 1982 Op. Att'y Gen. No. 82-42.

RESEARCH REFERENCES

Am. Jur. 2d.

- 71 Am. Jur. 2d, State and Local Taxation, § 387.


Download our app to see the most-to-date content.