{"data":{"id":"us-ky/krs-304.11-050","jurisdiction":"us-ky","citation":"KRS 304.11-050","heading":"Premium tax on unauthorized insurer.","body":"(1) Effective with all premiums collected during the calendar year 1968, except\npremiums on lawfully procured surplus lines insurance, every unauthorized insurer\nshall pay to the secretary of revenue before March 1, next succeeding the calendar\nyear in which t he insurance was so effectuated, continued, or renewed, a premium\ntax of two percent (2%) of gross premiums charged for such insurance on subjects\nresident, located, or to be performed in this state. The insurance whether procured\nthrough negotiation or an  application, in whole or in part occurring or made within\nor outside of this state, or for which premiums in whole or in part are remitted\ndirectly or indirectly from within or outside of this state, shall be deemed to be\ninsurance procured or continued i n this state. The term \"premium\" includes all\npremiums, membership fees, assessments, dues, and any other consideration for\ninsurance. If the tax prescribed by this section is not paid within the time stated, the\ntax shall be increased by a penalty of twen ty-five percent (25%) and by the amount\nof an additional penalty computed at the rate of one percent (1%) per month or any\npart thereof from the date the payment was due to the date paid.\n(2) If the policy covers risks or exposures only partly in the state , the tax payable shall\nbe computed on the portions of the premium which are properly allocable to the\nrisks or exposures located in the state. In determining the amount of premiums\ntaxable in this state, all premiums written, procured, or received in this  state and all\npremiums on policies negotiated in this state shall be deemed written on property or\nrisks located or resident in this state, except those premiums as are properly\nallocated or apportioned and reported as taxable premiums to any other state or\nstates.\n(3) Proration of premium taxes due from those insureds specified in KRS 304.11 -020\nunder a contract procured from an unauthorized insurer having property in states\nother than Kentucky, shall be determined by administrative regulations promulgated\nby the secretary of revenue using the following criteria where applicable:\n(a) Percentage of physical assets in Kentucky;\n(b) Percentage of employee payroll in Kentucky;\n(c) Percentage of sales in Kentucky; and\n(d) Percentage of taxable income reportable in Kentucky.\n(4) The secretary of revenue, or the Attorney General upon request of the secretary of\nrevenue, shall proceed in the courts of this state or any other state or in any federal\ncourt or agency to recover tax not paid within the time prescribed in this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17008","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:41Z","sha256":"acc13aa65463f311e0512b7fa99a70a6091ac29b40d124c5b5e2f47417e1f4e4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.11-045","next":"us-ky/krs-304.110"},"notice":"GroundRules: Original legal text. Not legal advice."}