§ 68-35. Tax imposed on insurers.

(a)

Tax imposed on life insurers. The city has filed this section with the commissioner as required by O.C.G.A. § 33-8-8-1. The city is authorized to impose a tax on each life insurance company doing business within the city, which tax shall be based solely upon the gross direct premiums, as defined in O.C.G.A. § 33-8-4, which are received during the preceding calendar year from policies insuring persons residing within the city. The rate of this tax may not exceed one percent of the premiums. The tax imposed shall not apply to annuity considerations.

(b)

Taxes on insurance companies other than life insurance companies.

(1)

The city hereby levies a tax at a rate of 2.5 percent upon the gross direct premiums of all foreign, alien and domestic insurance companies doing business in the city other than life insurance companies. The tax shall be in addition to the taxes levied by O.C.G.A. § 33-8-4 and may be levied upon the gross direct premiums received by such companies during the preceding calendar year. The tax is levied upon premiums derived from policies insuring persons, property or risks in the state from January 1 to December 31, both inclusive, of each year without regard to business ceded to or assumed from other companies. The tax is imposed upon gross premiums received during the preceding calendar year from direct writing without any deductions allowed from premium abatement of any kind or character or for reinsurance or for losses or expenses of any kind; provided, however, deductions shall be allowed for premiums returned or change of rate or canceled policies; provided, further, that deductions shall be permitted for returned premiums or assessments, including all policy dividends, refunds, or other similar returns paid or credited to policyholders.

(2)

The taxes provided in this section shall be levied for city purposes and shall be collected and distributed as follows:

a.

On or before January 1 of the first year that the tax is levied, the city shall file with the commissioner a certified copy of the pertinent parts of all ordinances and resolutions and amendments thereto which impose the tax, and such filing shall be a condition to the validity and enforceability of such an ordinance or resolution;

b.

On or before February 1 of each year, the commissioner shall furnish to each insurance company a list of all counties and municipal corporations where the tax as authorized by this section has been imposed for the then current year together with the applicable tax rate levied by each such county and municipal corporation and the population percentages by which the taxes are to be allocated to each such county and municipal corporation as provided in this section;

c.

1.

On March 1, 1984, and on the same date in each subsequent year, each insurance company upon which a tax is imposed by subsection (b)(2) of this section shall file a certified return on a form prescribed by the commissioner showing gross direct premiums received during the preceding calendar year that will appear in the company's certified annual statement.

2.

Reserved.

3.

On or before August 1, 1988, and on the same date in each subsequent year, the commissioner shall collect taxes imposed pursuant to this section on behalf of counties and municipal corporations whose ordinances have been filed with the commissioner. The premiums tax collected for each year shall be based upon gross direct premiums written during the preceding calendar year. Penalty and interest as prescribed in O.C.G.A. § 33-8-6(d) shall be imposed for late payment, underpayment or nonpayment of such taxes;

d.

The total amount of premiums taxable by the state on insurance companies as defined in this section shall be allocated to each county unincorporated area and each municipal corporation based upon a fraction, the numerator of which is the population of the unincorporated area or municipal corporation and the denominator of which is the total population of the state. Tax rates levied by each county shall be applied to the premiums allocated to its unincorporated area, and tax rates levied by each municipal corporation shall be applied to the premiums allocated to it; and

e.

On or before October 15, 1988, and on the same date in each subsequent year, the commissioner shall distribute the taxes imposed by counties and municipal corporations which are actually remitted to and collected by the commissioner. On or before October 15, 1988, and on the same date in each subsequent year, the commissioner shall distribute any delinquent taxes actually collected by the commissioner for a previous year, exclusive of any interest or penalty on such delinquent taxes, which delinquent taxes have not previously been distributed.

(3)

For purposes of this section, population shall be measured by the United States decennial census of 1990 or any future such census plus any corrections or revisions contained in official statements by the United States Bureau of the Census made prior to the first day of September immediately preceding the distribution of the proceeds of such taxes by the commissioner and any additional official census data received by the commissioner from the United States Bureau of the Census or its successor agency pertaining to any newly incorporated municipality. Such corrections, revisions or additional data shall be certified to the commissioner by the office of planning and budget on or before August 31 of each year.

(Ord. No. 19-2006, § 1, 10-9-06)

State law reference

Similar provisions, O.C.G.A. § 33-8-8.1.