{"data":{"id":"us-ky/krs-304.49-220","jurisdiction":"us-ky","citation":"KRS 304.49-220","heading":"Tax levied on premium receipts -- Rates -- Exclusivity of premium tax --","body":"Distribution of revenue for administration of KRS 304.49-010 to 304.49-230.\n(1) Every captive insurer holding a certificate of authority under KRS 304.49 -010 to\n304.49-230 shall return to the Department of Revenue a statement under oath of all\npremium receipts on business written by the captive insurer during the preceding\nyear and shall pay, on or before March 1 in each year, a tax at the rate of four-tenths\nof one percent (0. 4%) on the first twenty million dollars ($20,000,000), and three -\ntenths of one percent (0.3%) on the next twenty million dollars ($20,000,000), and\ntwo-tenths of one percent (0.2%) on the next twenty million dollars ($20,000,000),\nand seventy-five thousandths of one percent (0.075%) on each dollar thereafter on\nthe direct premiums collected or contracted for on policies or contracts of insurance\nwritten by the captive insurer during the year ending December 31 next preceding,\nafter deducting from the direct  premiums subject to the tax the amounts paid to\npolicyholders as return premiums, which shall include dividends on unabsorbed\npremiums or premium deposits returned or credited to policyholders.\n(2) Every captive insurer holding a certificate of authority under KRS 304.49 -010 to\n304.49-230 shall return to the Department of Revenue a statement under oath of all\nassumed reinsurance premium receipts during the preceding year and shall pay, on\nor before March 1 in each year, a tax at the rate of two hundred twe nty-five\nthousandths of one percent (0.225%) on the first twenty million dollars\n($20,000,000) of assumed reinsurance premiums, and one hundred fifty thousandths\nof one percent (0.150%) on the next twenty million dollars ($20,000,000), and fifty\nthousandths of one percent (0.050%) on the next twenty million dollars\n($20,000,000), and twenty-five thousandths of one percent (0.025%) of each dollar\nthereafter. However, no reinsurance tax applies to premiums for risks or portions of\nrisks which are subject to taxation on a direct basis pursuant to subsection (1) of this\nsection. No reinsurance premium tax shall be payable in connection with the receipt\nof assets in exchange for the assumption of loss reserves and other liabilities of\nanother insurer or self -insurer under common ownership and control if the\ntransaction is part of a plan to discontinue the operations of the other insurer or self-\ninsurer, and if the intent of the parties to the transaction is to renew or maintain the\nbusiness with the captive insurer.\n(3) If the aggregate taxes to be paid by a captive insurer calculated under subsections\n(1) and (2) of this section amount to less than five thousand dollars ($5,000) in any\nyear, the captive insurer shall pay a tax of five thousand dollars ($5,000) for  such\nyear.\n(4) Two (2) or more captive insurance companies under common ownership and\ncontrol shall be taxed as though they were a single captive insurer.\n(5) For the purposes of this section, common ownership and control shall mean:\n(a) In the case of st ock corporations, the direct or indirect ownership of eighty\npercent (80%) or more of the outstanding voting stock of two (2) or more\ncorporations by the same shareholder or shareholders; and\n(b) In the case of mutual corporations, the direct or indirect o wnership of eighty\npercent (80%) or more of the surplus and the voting power of two (2) or more\ncorporations by the same member or members.\n(6) In the case of a branch captive insurer, the tax provided for in this section shall\napply only to the branch business of the company.\n(7) The tax provided for in this section shall constitute all taxes collectible under the\nlaws of Kentucky from any captive insurer, and the taxes imposed under this section\nshall be in lieu of all excise, license, occupational, or ot her taxes imposed by the\nstate, county, city, or other taxing district.\n(8) The Kentucky Department of Revenue shall annually, on or before June 30 of each\nyear, distribute ten percent (10%) of the premium tax revenues collected pursuant to\nthis section to  the Department of Insurance for the regulation of captive insurance\ncompanies under KRS 304.49-010 to 304.49-230.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=30239","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:00Z","sha256":"0320d058005ce9726c780f029f81f8271ce40a2facf2c5ac56d9256f79131806","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.49-210","next":"us-ky/krs-304.49-222"},"notice":"GroundRules: Original legal text. Not legal advice."}