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Insurance Premiums Tax/Surcharge

Insurance Premiums Tax is a tax paid by all life insurance companies, all stock insurance companies, all mutual insurance companies, and all captive insurers doing business in Kentucky.

The tax is assessed on premiums collected by insurance companies on policies written in Kentucky during the preceding calendar year.

The Insurance Premium Surcharge is charged and collected by every foreign, domestic, or alien insurer, other than life insurers, on premiums, assessments, or other charges, for insurance coverage provided to its policyholders on risks located in Kentucky.

The Insurance Premiums Tax Laws are located in Chapter 136 of the Kentucky Revised Statutes.

Notice - Attention Insurers, Surplus Lines Brokers & Agents

Insurance Premium Surcharge Rate Adjustment

Adjustment of premium surcharge rate effective April 1, 2010

Pursuant to KRS 136.392(1)(b), the premium surcharge rate will increase from $1.50 to $1.80 per $100.00 of premiums, assessments, or other charges for insurance coverage provided to policyholders on risks located in Kentucky.  The adjustment to the premium surcharge rate will be effective and applied to all payments for insurance coverage reported on or after April 1, 2010.

Forms will be updated to reflect this change and will be available on the Current Year Insurance Premiums Tax/Surcharge Forms page prior to the effective date of the change.  This page can be found at: http://revenue.ky.gov/forms/2011iptsforms.htm

EXCEPTIONS:

It should be noted that the exceptions listed in KRS 136.392(5) remain in full force and effect.  Also be advised as follows:

  • Municipal premium taxes imposed pursuant to KRS 91A are not to be included in calculation of the premium surcharge;
  • Life and health insurers are not subject to the premium surcharge imposed by KRS 136.392; and
  • Pursuant to KRS 342.122(1)(e), the premium surcharge shall not be imposed on Workers’ Compensation premium.

Any questions regarding the premium surcharge rate adjustment should be directed to the Miscellaneous Tax Branch at (502) 564-9300.

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Contact DOR Staff

If you have questions or require forms not included in this list please contact us.

Questions can be directed to the Kentucky Department of Revenue, Financial Tax Section, Station 61, PO Box 1303, Frankfort, KY  40602-1303 (502) 564-4810.

 

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Last Updated 6/29/2012
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