Please review R590-102 Insurance Department Fee Payment Rule to find the department fees that apply to you.
Retaliatory Law:
The fees enumerated in this rule are not subject to retaliation in accordance with Section 31A-3-401 if higher fees are imposed by other states or countries.
Premium Tax – Utah Tax Commission
Phone: (801) 297-2200 or (800) 662-4335
Premium Tax Base:
59-9-101
Total Premiums reduced by returned premiums, premiums for reinsurance of property or risks located in Utah, dividends returned or applied to premiums. Ocean marine insurance premiums are not included, nor are workers’ compensation premiums, annuity considerations, or title insurance premiums. Domestic stock and mutual corporation, nonprofit health service corporations, HMOs, limited health plans, fraternal, motor clubs, employee welfare funds, and foreign inscribers are not subject to tax on health care insurance.
Tax Rate:
59-9-101
2.25%
31A-15-204
Risk Retention group taxed the same as a foreign admitted insurer.
Other Taxes and Assessments:
59-9-101 Title Insurers
The tax rate is 0.45% of total premiums received, including premiums for the assumption of risk and the charge for abstracting titles, title searching, etc.
59-9-101 Workers’ Compensation
Workers’ compensation insurers shall pay a premium assessment of between 1% and 8% of net written premiums before reductions for any deductible amount. The percentage applicable to any given year is determined by the Labor Commission. An additional assessment of up to 2% may be imposed on workers’ compensation premiums for employers’ reinsurance fund special assessment. The combined rate on 2000 workers’ compensation premiums is 10% for all agencies, except public agency insurance mutuals, which are taxed at 9.75%.
59-9-103 Insurers not otherwise taxed
Administrative and claims expenses, including all claims paid, agency expenses, third party administrator expenses, taxes, licenses, fees, legal expenses, reinsurance charges, etc. less reimbursements because of reinsurance or otherwise shall be the basis for a 2.25% tax.
59-9-105 Relative Value Study
Insurers providing motor vehicle liability insurance, uninsured motorist coverage and personal injury protection shall pay an additional tax of 0.01% of total premiums covering motor vehicle risks in the state minus returned premiums. Such funds are for the purpose of paying the costs of the insurance department study on relative value, which is defined at 31A-22-307.
31A-31-108 Insurance Fraud Assessment
Each admitted and nonadmitted insurer may be assessed an annual fee as follows:
| Fee | Total Premium for Utah Risks |
|---|---|
| $200 | $1 million or less |
| $450 | More than $1 million but less than $2.5 million |
| $800 | More than $2.5 million but less than $5 million |
| $1,600 | More than $5 million but less than $10 million |
| $6,100 | More than $10 million but less than $50 million |
| $15,000 | $50 million or more |
31A-28-208 Property and Casualty Guaranty Association
May assess member insurers no more than $300 per year for administrative expenses and no more than 2% of insurer’s premiums for the preceding calendar year for the kinds of insurance in account with deficiency.
31A-28-109 Life and Health Guaranty Association
May assess member insurers no more than $300 per year for administrative expenses and no more than 2% of insurer’s premiums over last 3 years for kinds of insurance in account with deficiency.
31A-3-102 Preemption
Taxes and fees under this chapter and premium taxes under Chapter 59-9 are in lieu of other taxes and assessments. An insurer that pays premium tax is not subject to corporate franchise taxes.
Exclusions and Deductions:
31A-9-601 Fraternal Benefit Societies
Fraternals are exempt from premium tax.
Crop Insurance
Premiums on federally reinsured multi-peril crop insurance are not subject to premium tax.
Credits:
59-9-102 Property Tax Offset
Insurers may offset from the premium tax due that portion of the property tax paid for general state purposes.
31A-2-205 Examination Fees
Domestic insurers may offset examination fees paid against their premium taxes.
31A-28-113 Life and Health Guaranty Association
Insurers may offset Class B assessments against their premium tax liability at the rate of 20% per year for each of the 5 years following the year the assessment was paid. Refunds of assessments are taxable.
31A-28-212 Property and Casualty Guaranty Association
Insurers may offset assessments paid against their premium tax liability at the rate of 20% per year for each of the 5 years following the year the assessment was paid. Refunds of assessments are taxable.
Payment Due Dates:
59-9-101
Return due March 31.
59-9-104
Installment payments due if last year’s liability was $10,000 or more. Each installment shall be based on estimated premiums received, or claims and administrative expenses paid, and is due April 30, July 31, October 31, and March 31. No penalty will be assessed if each installment is at least 27% of last year’s tax liability.
Penalties:
59-1-401 Penalties
The penalty for failure to file a tax return within the time prescribed by law including extensions is the greater of $20 or 10% of the unpaid tax due on the return. Failure to pay any tax within 90 days of the due date of the return, if there was a late filed return subject to the penalty provided under Subsection (1)(a). Penalty for underpayment due to negligence is 10% of the underpayment. If the underpayment is due to fraud with intent to evade the tax, the penalty is the greater of $500 per period or 100% of the underpayment. There are additional penalties for intent to evade the tax.
59-1-402 Interest
The rate of interest applicable to any tax provision is calculated based on the federal short-term rate determined by the Secretary of the Treasury.
Extensions:
59-7-514
An extension may be granted for the payment of a deficiency for a period not in excess of six months.
