31A-3-303. Payment of tax.
(1) The insurer, all producers involved in the transaction, and the policyholder are jointly
and severally liable for the payment of the taxes required under Section 31A-3-301. The
policyholder's liability for payment of the premium tax under Section 31A-3-301 ends when the
policyholder pays the tax to the producer or insurer. The insurer and all producers involved in
the transaction are jointly and severally liable for the payment of the additional tax required
under Section 31A-3-302. Except for the tax under Section 31A-3-302, the taxes under this part
shall be paid by the policyholder who shall be billed specifically for the tax when billed for the
premium. Except for the tax imposed under Section 31A-3-302, absorption of the tax by the
producer or insurer is an unfair method of competition under Section 31A-23a-402.
(2) The commissioner shall by rule prescribe accounting and reporting forms and
procedures for insurers, producers, and policyholders to use in determining the amount of taxes
owed under this part, and the manner and time of payment. If a tax is not paid within the time
prescribed under the commissioner's rule, a penalty shall be imposed of 25% of the tax due, plus
1-1/2% per month from the time of default until full payment of the tax.
(3) Upon making a record of its actions, and upon reasonable cause shown, the State Tax
Commission may waive, reduce, or compromise any of the penalties or interest imposed under
this part.
(4) If a policy covers risks that are only partially located in this state, for computation of
tax under this part the premium shall be reasonably allocated among the states on the basis of risk
locations. However, all premiums with respect to surplus lines insurance received in this state by
a surplus lines producer or charged on policies written or negotiated in or from this state are
taxable in full under this part, subject to a credit for any tax actually paid in another state to the
extent of a reasonable allocation on the basis of risk locations.
(5) All premium taxes collected under this part by a producer or by an insurer are the
property of this state.
(6) If the property of any producer is seized under any process in a court in this state, or
if his business is suspended by the action of creditors or put into the hands of an assignee,
receiver, or trustee, all taxes and penalties due this state under this part are preferred claims and
the state is to that extent a preferred creditor.
Amended by Chapter 252, 2003 General Session
Amended by Chapter 298, 2003 General Session
Download Code Section Zipped WordPerfect 31A03_030300.ZIP 2,867 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Thursday, May 28, 2009