2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 26 - Insurance Companies › § 47–2608. Rates on insurance companies; exceptions; marine insurance excluded; payment schedule; revocation of certificate of authority for failure to pay tax

§ 47–2608. Rates on insurance companies; exceptions; marine insurance excluded; payment schedule; revocation of certificate of authority for failure to pay tax.
(a)(1) Except as provided in paragraph (1A) of this subsection, all such companies, including companies which issue annuity contracts, shall also pay to the District of Columbia, for each calendar year, a sum of money as taxes equal to 1.7% of their policy and membership fees and net premium receipts or consideration received in such calendar year on all insurance and annuity contracts on risks in the District of Columbia. Such tax shall be in lieu of all other taxes except:
(A) Taxes upon real estate; and
(B) Fees and charges provided for by the insurance laws of the District including amendments made to such laws by this chapter.
(1A)(A) All companies that issue contracts of insurance against accident and loss of health shall pay to the District of Columbia, for each calendar year, a sum of money as taxes equal to 2% of their policy and membership fees and net premium receipts or consideration received in that calendar year on all policies or contracts in the District of Columbia. Such tax shall be in lieu of all other taxes except:
(i) Taxes upon real estate; and
(ii) Fees and charges provided for by the insurance laws of the District.
(B) This paragraph shall apply as of October 1, 2008.
(2) Net premium receipts or consideration received means gross premiums or consideration received, not including premiums received in connection with a tax exempt “pension business” as defined in section 1012(c)(4)(D) of the Tax Reform Act of 1986 (26 U.S.C. § 833, note), by a corporation referred to in section 1012(c)(4)(B) of the Tax Reform Act of 1986, less the sum of the following:
(A) Premiums received for reinsurance assumed and premiums or consideration returned on policies or contracts cancelled or not taken; and
(B) Dividends paid in cash or used by the policyholders in payment of renewal premiums.
(C) All premiums received from policies or contracts issued in connection with a pension, annuity, profit-sharing plan or individual retirement annuity qualified or exempt under section 401, 403, 404, 408, or 501(a) of the Internal Revenue Code, or successor provisions.
(3) Nothing contained in this section or in § 47-2603 or § 47-2609 shall apply with respect to marine insurance written within the said District and reported, taxed, and licensed under Chapter 26 of Title 31.
(a-1) A hospital service corporation or medical service corporation may deduct, in an amount not to exceed $550,000, the corporation’s payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with the provisions of Chapter 5 of Title 31 from the amount otherwise due by the corporation under subsection (a) of this section.
(b)(1) The tax imposed by subsection (a) of this section shall, for each calendar year prior to calendar year 1977, be paid before the first day of March of the next succeeding calendar year.
(2) Except as provided in paragraph (3) of this subsection, the tax imposed for calendar year 1999, and for each calendar year thereafter, shall be paid on or before the first day of June of the calendar year in which the income to be taxed is received and before the first day of March following the close of each calendar year. The June payment shall be an amount equal to 1/2 of the total premium tax liability determined for the preceding calendar year. In accordance with rules prescribed by the Mayor, each company shall determine its total tax liability for each calendar year and pay the remainder, if any, on or before the first day of March following the close of each calendar year. Overpayments of tax may be refunded to the company or credited to the company’s next installment payment, at the election of the company.
(3) The installment payment provision of subsection (b)(2) of this section shall not apply in the case of any company having a tax liability for the preceding calendar year less than $1,000. In such cases the tax shall be paid on or before the first day of March following the close of the calendar year.
(c) The certificate of authority of any company may be revoked for failure to pay the tax required by this chapter.
(Aug. 17, 1937, 50 Stat. 676, ch. 690, title II, § 6; May 16, 1938, 52 Stat. 358, ch. 223, § 2; Apr. 19, 1977, D.C. Law 1-124, title X, § 1000, 23 DCR 8749; Sept. 23, 1977, D.C. Law 2-19, § 3, 24 DCR 3338; renumbered as § 8, Sept. 26, 1984, D.C. Law 5-113, § 401, 31 DCR 3974; Sept. 10, 1992, D.C. Law 9-145, § 111, 39 DCR 4895; Mar. 17, 1993, D.C. Law 9-224, § 2, 40 DCR 592; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 29, 1998, D.C. Law 12-86, § 202, 45 DCR 1172; Apr. 20, 1999, D.C. Law 12-264, § 52(q), 46 DCR 2118; Mar. 2, 2007, D.C. Law 16-192, § 5013(b)(2), 53 DCR 6899; Aug. 16, 2008, D.C. Law 17-219, § 5055(b), 55 DCR 7598; Feb. 4, 2010, D.C. Law 18-104, § 4(c), 56 DCR 9182; Sept. 24, 2010, D.C. Law 18-223,§ 2183, 57 DCR 6242.)
Prior Codifications
1981 Ed., § 47-2608.
1973 Ed., § 47-1806.
Section References
This section is referenced in § 31-3514 and § 31-3514.01.
Effect of Amendments
D.C. Law 16-192 added subsec. (a-1).
D.C. Law 17-219, in subsec. (a), inserted “Except as provided in paragraph (1A),” in par. (1), and added par. (1A).
D.C. Law 18-104, in subsec. (a-1), substituted “payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with the provisions of Chapter 5 of Title 31” for “payment to the rate stabilization fund under § 31-3514”.
D.C. Law 18-223, in subsec. (a)(1), substituted “2%” for “1.7%”.
Cross References
Hospital and medical services corporation regulation, conversion to a mutual company, open enrollment program, see § 31-3516.
Hospital and medical services corporation regulation, conversion to a stock company, open enrollment program, see § 31-3515.
Hospital and medical services corporation regulation, open enrollment, effect on premium tax rate, see § 31-3514.
Emergency Legislation
For temporary (90 day) amendment of section, see § 5013(b)(2) of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).
For temporary (90 day) amendment of section, see § 5013(b)(2) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).
For temporary (90 day) amendment of section, see § 5013(b)(2) of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).
For temporary (90 day) amendment of section, see § 4(c) of Hospital and Medical Services Corporation Regulatory Emergency Amendment Act of 2009 (D.C. Act 18-277, January 11, 2010, 57 DCR 935).
For temporary (90 day) amendment of section, see § 2183 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).
Temporary Legislation
Section 4(c) of D.C. Law 18-134 substituted “payment to the rate stabilization fund under § 31-3514 and payments and expenditures pursuant to a public-private partnership entered into in accordance with the provisions of Chapter 5 of Title 31” for “payment to the rate stabilization fund under § 31-3514”.
Section 6(b) of D.C. Law 18-134 provided that the act shall expire after 225 days of its having taken effect.
Editor's Notes
Mayor authorized to issue rules: See notes to § 47-2601.
Section 2184 of D.C. Law 18-223 provided: “Sec. 2184. Sunset. This subtitle shall expire on September 30, 2015.”