Opinion ID: 1803409
Heading Depth: 1
Heading Rank: 5

Heading: Dedicated Tax Revenues

Text: The legislature provided the third main source of funding for the FRS by dedicating to the FRS tax revenues collected through assessments against insurers conducting business in the state. Prior to the creation of the FRS, the legislature created the Louisiana Insurance Rating Commission (Commission) in La. R.S. 22:1401 et seq. Section 2 of Acts 1979, No. 434 amended La. R.S. 22:1419 to provide for a specific dedication of tax revenue for the benefit of the FRS derived from assessments against insurers conducting business in the state which were collected in the Insurance Premium Tax Fund (IPTF). [18] The legislature dedicated to the FRS funds from the IPTF calculated as an amount equal to two-tenths of one percent of the gross direct premiums received in this state, in the preceding year, by insurers doing business in this state and subject to this Part, less returned premiums.... [19] In the same legislation, the legislature dedicated four-tenths of one percent of the IPTF to the Municipal Police Employees' Retirement System and one-tenth of one percent of the IPTF to the Sheriffs' Pension and Relief Fund. [20] IPTF funds are placed into the Pension accumulation sub-fund of the FRS. [21] Thus, the gross or total employers' contribution in the Pension accumulation sub-fund is made up of the contribution directly obtained from the employers and the dedicated tax revenue from the IPTF.