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26-57-604. Remittance of tax.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-57-604. Remittance of tax.
(a)(1)(A) Coincident with the filing of the tax report, each authorized life or accident and health insurer, including licensed health maintenance organizations, may apply for a credit for the noncommissioned salaries and wages of the insurer's Arkansas employees that are paid in connection with its insurance operations.
(B)(i) The credit may be applied as an offset against the premium tax imposed in § 26-57-603(d) on life and accident and health insurance.
(ii) However, the credit shall not be applied as an offset against the premium tax on collections resulting from an eligible individual insured under the Health Care Independence Act of 2013, § 20-77-2401 et seq. [repealed], the Arkansas Works Act of 2016, § 23-61-1001 et seq., the Arkansas Health Insurance Marketplace Act, § 23-61-801 et seq., or individual qualified health insurance plans, including without limitation stand-alone dental plans, issued through the health insurance marketplace as defined by § 23-61-1003.
(iii) The credit shall not be applied as an offset against the premium tax on collections resulting from an eligible individual insured under the Arkansas Medicaid Program as administered by a risk-based provider organization.
(2)(A) The offset shall not reduce the accident and health premium tax due by more than the following amounts:
(i) For tax years beginning before January 1, 2021, eighty percent (80%);
(ii) For the tax year beginning January 1, 2021, seventy percent (70%);
(iii) For the tax year beginning January 1, 2022, sixty percent (60%); and
(iv) For tax years beginning on and after January 1, 2023, fifty percent (50%).
(B) Beginning January 1, 2020, an authorized accident or health insurer shall not receive a credit under this subsection th
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-57-604
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-57-604
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 2f9d0b76a9254c230b1720686f0ed59a2a277a08fef5eb8e6a70196d5994bcc6
Source location: content.xml paragraph 27873
Stored source content
26-57-604. Remittance of tax.
(a)(1)(A) Coincident with the filing of the tax report, each authorized life or accident and health insurer, including licensed health maintenance organizations, may apply for a credit for the noncommissioned salaries and wages of the insurer's Arkansas employees that are paid in connection with its insurance operations.
(B)(i) The credit may be applied as an offset against the premium tax imposed in § 26-57-603(d) on life and accident and health insurance.
(ii) However, the credit shall not be applied as an offset against the premium tax on collections resulting from an eligible individual insured under the Health Care Independence Act of 2013, § 20-77-2401 et seq. [repealed], the Arkansas Works Act of 2016, § 23-61-1001 et seq., the Arkansas Health Insurance Marketplace Act, § 23-61-801 et seq., or individual qualified health insurance plans, including without limitation stand-alone dental plans, issued through the health insurance marketplace as defined by § 23-61-1003.
(iii) The credit shall not be applied as an offset against the premium tax on collections resulting from an eligible individual insured under the Arkansas Medicaid Program as administered by a risk-based provider organization.
(2)(A) The offset shall not reduce the accident and health premium tax due by more than the following amounts:
(i) For tax years beginning before January 1, 2021, eighty percent (80%);
(ii) For the tax year beginning January 1, 2021, seventy percent (70%);
(iii) For the tax year beginning January 1, 2022, sixty percent (60%); and
(iv) For tax years beginning on and after January 1, 2023, fifty percent (50%).
(B) Beginning January 1, 2020, an authorized accident or health insurer shall not receive a credit under this subsection that exceeds an annual total of eighteen million dollars ($18,000,000).
(C) The offset shall not reduce the life premium tax due by more than seventy percent (70%).
(D) The taxes shall be reported and paid on a quarterly estimated basis as prescribed by the Insurance Commissioner and shall be reconciled annually at the time of filing the annual report required in § 26-57-603(a)-(c).
(3) An employee shall be employed for six (6) months for the salary or wages to be eligible to qualify for the life or accident and health premium tax credit.
(4)(A)(i) Except as provided in subdivision (a)(4)(B) of this section, on or before March 1 of each year, any such authorized life or accident and health insurer, including health maintenance organizations, desiring to qualify under this provision shall furnish the appropriate data and request on forms prescribed by the commissioner.
(ii) For purposes of calculating the taxes under §§ 23-63-102 — 23-63-104, an insurer qualifying for a credit under this section shall compute the tax due under §§ 23-63-102 — 23-63-104, if any, by using an Arkansas premium tax rate of two and one-half percent (2½%).
(B)(i) Subdivision (a)(4)(A) of this section shall only apply for tax years beginning prior to January 1, 2000.
(ii) By March 1 of each year, an authorized life or accident and health insurer, including health maintenance organizations, desiring to qualify under this provision shall furnish the appropriate data and request on forms prescribed by the commissioner.
(iii) However, for purposes of calculating the taxes under §§ 23-63-102 — 23-63-104, an insurer qualifying for a credit under this section shall compute the tax due under §§ 23-63-102 — 23-63-104, if any, by using an Arkansas premium tax rate of two and one-half percent (2½%) without regard to the credit specified in this section.
(b)(1) Each insurer other than those in § 26-57-603(d) and subsection (a) of this section shall pay to the Treasurer of State through the commissioner, as a tax imposed for the privilege of transacting business in this state, a tax at the rate of two and one-half percent (2½%) upon the net premiums and net considerations on all kinds of insurance, except as provided in § 26-57-605.
(2) The taxes shall be paid on a quarterly estimate basis as prescribed by the commissioner and shall be reconciled annually at the time of filing the annual report required in § 26-57-603(a)-(c).
(c)(1) In addition to any premium tax credit not related to the same eligible property for which an insurer qualifies under subsection (a) of this section, there is allowed a premium tax credit for the amount of the Arkansas historic rehabilitation income tax credit allowed by the certification of completion issued by the Division of Arkansas Heritage under the Arkansas Historic Rehabilitation Income Tax Credit Act, § 26-51-2201 et seq.
(2) The premium tax credit under this subsection may be used to offset the premium tax imposed by §§ 26-57-603 — 26-57-605.
(3) The amount of the premium tax credit under this section that may be claimed by the taxpayer in a tax year shall not exceed the amount of premium tax due by the taxpayer.
(4) Any unused premium tax credit may be carried forward for a maximum of five (5) consecutive taxable years for credit against the premium tax.
(5) The commissioner shall promulgate rules to implement this section.
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Arkansas Code — all titles (historical 2020) · legal_authorities
20-77-2401 — 20-77-2408. [Repealed.]
Source: Arkansas Code — historical release 78 (November 6, 2020) · 20-77-2401
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: repealed. The source passage cites 20-77-2401. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-61-1001. Title.
This subchapter shall be known and may be cited as the “Arkansas Works Act of 2016”.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-61-1001
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-61-1001. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-61-801. Title.
This subchapter shall be known and may be cited as the “Arkansas Health Insurance Marketplace Act”.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-61-801
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-61-801. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-57-603. Tax reports generally.
(a) Each authorized, each formerly authorized, and each unauthorized insurer as defined in § 23-60-102(12) shall file with the Insurance Commissioner on or before March 1 of each year a report in form as prescribed by the commissioner showing, except as to wet marine and foreign trade insurance as defined in § 26-57-605(d), total direct premium income including policy, membership, and other fees, and all other considerations for insurance, from all kinds and classes of insurance, whether designated as premium or otherwise, written by it during the preceding calendar year on account of policies and contracts covering property, subjects, or risks located, resident, or to be performed in this state, with proper proportionate allocation of premium as to the persons, property, subjects, or risks in this state insured under policies or contracts covering persons, property, subjects, or risks located or resident in more than one (1) state, after deducting from the total direct premium income dividends and similar returns paid or credited to policyholders other than as to life insurance, applicable cancellations, returned premiums, the unabsorbed portion of any deposit premium, and the amount of reduction in, or refund of, premiums allowed to industrial life policyholders for payment of premiums directly to an office of the insurer.
(b) No deduction shall be made of the cash surrender values of policies.
(c) Considerations received on annuity contracts shall not be included in total direct premium income and shall not be subject to tax.
(d) Each authorized, unauthorized, or formerly authorized domestic, foreign, and alien insurer shall pay to the Treasurer of State through the commissioner, as a tax imposed for the privilege of transact
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-57-603
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-57-603. This identifies an authority to review, not proof of applicability.