District Of Columbia § 31-3931.12 - Tax on premiums collected.
Full text of District Of Columbia D.C. Code § 31-3931.12 — Tax on premiums collected., with citation guidance and answers to common questions.
§ 31-3931.12. Tax on premiums collected.
31-3931.12Except as otherwise provided in this section, a captive insurer shall pay to the District, not later than March 2 of each year, a tax at the rate of:
Two hundred fifty thousandths of one percent on the first $25 million of its net direct premiums;
One hundred fifty thousandths of one percent on the next $25 million of its net direct premiums; and
Fifty thousandths of one percent on each additional dollar of its net direct premiums.
A captive insurer organized as a risk retention group, as defined in , shall pay to the District, not later than March 2 of each year, a tax at the rate of:
Thirty-eight hundredths of 1% on the first $20 million of its total net direct premiums;
Twenty-five hundredths of 1% on the next $20 million of its total net direct premiums; and
Eighteen hundredths of 1% on each additional dollar of its total net direct premiums.
Except as otherwise provided in this section, a captive insurer shall pay to the District, not later than March 2 of each year, a tax at the rate of:
Two hundred twenty-five thousandths of one percent on the first $25 million of revenue from assumed reinsurance premiums;
One hundred fifty thousandths of one percent on the next $25 million of revenue from assumed reinsurance premiums; and
Twenty-five thousandths of one percent on each additional dollar of revenue from assumed reinsurance premiums.
The tax on reinsurance premiums pursuant to this subsection shall not be levied on premiums for risks or portions of risks which are subject to taxation on a direct basis pursuant to subsection (a) of this section. A captive insurer shall not pay any reinsurance premium tax pursuant to this subsection on revenue related to the receipt of assets by the captive insurer in exchange for the assumption of loss reserves and other liabilities of another insurer that is under common ownership and control with the captive insurer, if the transaction is part of a plan to discontinue the operation of the other insurer and the intent of the parties to the transaction is to renew or maintain such business with the captive insurer.
If the sum of the taxes to be paid by a captive insurer, other than a risk retention group licensed as an association captive insurer, calculated pursuant to subsections (a) and (b) of this section is less than $7,500 in any given year, the captive insurer shall pay a minimum tax of $7,500 for the year.
If the sum of the taxes to be paid by a risk retention group, licensed as an association captive insurer, calculated pursuant to subsections (a-1) and (b) of this section is less than $15,000 in any given year, the captive insurer shall pay a minimum tax of $15,000 for the year.
The total tax paid by a captive insurer shall not exceed $100,000 in any year.
In the case of a branch captive insurer, the tax provided for in this section shall apply only to the branch business of the branch captive insurer.
In the case of annuity business, the tax provided for in this section shall not apply.
Notwithstanding any specific statute to the contrary and except as otherwise provided in this subsection, the tax provided for by this section shall constitute all the taxes collectible pursuant to the laws of the District from a captive insurer, and no occupation tax or other taxes shall be levied or collected from a captive insurer by the District, except for real property taxes pursuant to or personal property taxes pursuant to .
A captive insurer that is issued a certificate of authority during the last quarter of the calendar year may file a written request with the Commissioner for a reduction in the minimum premium tax obligation calculated pursuant to subsections (c) and (d) of this section. The Commissioner may grant the a [sic] request pursuant to an appropriate methodology adopted by rule.
The tax provided for in this section shall be calculated on an annual basis, notwithstanding policies, contracts, insurance, or contracts of reinsurance issued on a multiyear basis. In the case of multiyear policies or contracts, the premium shall be prorated for purposes of determining the tax obligation under this section.
One hundred percent of the revenues collected from the tax imposed pursuant to this section shall be credited to the account for the regulation and supervision of captive insurers created by .
Repealed.
Annotations
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 31-3931.12
What does D.C. Code § 31-3931.12 cover?
Section 31-3931.12 ("Tax on premiums collected.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 31-3931.12?
A common citation format is "D.C. Code § 31-3931.12" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 31-3931.12 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.