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  Intelligent Solutions for Taxing Problems

Leveraging Location Intelligence for Accurate, Up-to-Date Premium Tax Assignments—and Avoid Regulatory Non-Compliance and Litigation  

Insurance companies, including life/health and property/casualty companies, paid $15.3 billion in just premium taxes to the 50 states in 2007. On a per capita basis, this works out to $51 for every person living in the United States. Premium taxes accounted for 2.0 percent of all taxes collected by the states in 2007.

Premium taxes have become big business. All states levy a statewide ‘excise,’ or ‘premium’ tax for state general fund support on most forms of casualty, property, and health insurance premiums. But a growing number of states go a step further; by allowing their local governments to apply a separate “local government premium tax” (ranging from 2 to 10%) to insurance policies to help finance local government services such as police and fire. It’s critically important that these taxes are assigned correctly and equitably. However, premium tax assignments and regulations vary from state to state, and change frequently. For insurers, this can be a critical business issue—without the proper insight, mistakes in assignments can result in overpayment of taxes, regulatory noncompliance, fraud and litigation.

·         Understand how today’s location intelligence technology can accurately assign premium tax to state municipalities to reduce over-and-undercharging of premium taxes

·         Learn how insurers can mitigate costly errors and ensure compliance with applicable state insurance laws

·         Learn about HB 524, a new state law that requires insurers to employ location-based technology for premium tax assignment—verified for accuracy by the Kentucky Office of Insurance—so insurers may properly collect the tax and make timely payments of taxes due to local governments

Hear from Industry Experts:

• Bob Hyle, Associate Editor—Tech Decisions
• Bob Meador, Tax Director, Pitney Bowes Business Insight