§ 23-75-119 - Premium tax. - Arkansas Statutes

23-75-119. Premium tax.

(a) The officers of every foreign or alien corporation, and the officers of every domestic corporation, transacting business under this chapter shall, at the time of making its annual statement, file with the Insurance Commissioner a sworn statement of its net direct written premiums for the year ending December 31 next preceding from subscribers residing in this state and shall pay into the State Treasury a premium tax of two and one-half percent (2.5%) on its net direct written premiums in compliance with the provisions of 26-57-601 et seq. as a tax for the privilege of transacting business in this state.

(b) No certificate of authority shall be renewed for any corporation until the tax is paid.

(c) (1) The tax shall be in lieu of other taxes, district or state, county or municipal, based on premiums written by the corporation in this state.

(2) No subdivision of this state may impose any license fee for the privilege of conducting business in any portion thereof.

(d) Pursuant to and subject to the conditions expressed in the provisions of 26-57-604, the corporation is entitled to take against its premium taxes due an offset or credit for the salaries or wages of noncommissioned Arkansas employees of the corporation.

(e) Absent an extension granted by the commissioner for good cause, failure of any licensed corporation to report this net direct written premium tax or pay this net direct written premium tax, or both, shall subject the corporation to the applicable penalties of this chapter and 26-57-601 et seq.

(f) Each hospital or medical service corporation shall have one (1) fiscal year following the reporting and payment year of a premium tax obligation to request a refund or credit for any premium tax overpayment amount, after which demands or requests for such monetary overpayment refund or credit against premium tax due shall be disallowed. Any corporation thus failing or neglecting to request the overpayment refund or credit against premium taxes due and payable to this state during the year allowable as specified in this section shall not be allowed to carry over the overpayment credit for the following year or years and shall not be entitled to an overpayment refund.