Oklahoma § 36-625.1 - Premium tax credit

§ 36-625.1. Premium tax credit

A. A foreign or alien insurer which is subject to the tax

imposed by Section 624 of this title shall be entitled to a credit

against said tax actually paid to and placed in the General Revenue

Fund of the state, not including any of said tax monies placed in

pension funds and not including any of said tax monies placed in

escrow, if, during the year for which the tax is being assessed, the

insurer or its affiliate maintained a regional home office in this

state in a building owned or leased by the insurer. To receive a

credit against the tax imposed for the year in which the regional

home office was established, said office must have been maintained

continuously from on or before August 1 of that year through the

last day of the calendar year. For succeeding years, an insurer or

its affiliate shall have maintained the regional home office

continuously from the first day of the calendar year for which the

tax is imposed through the last day of that calendar year. The Home

Office Credit shall be calculated as follows:

1. Until June 30, 2010, the credit shall be equal to the

following percentages of the amount due after the credits authorized

by Sections 624.1 and 625 of this title have been deducted:

a.

fifteen percent (15%), if there are more than two

hundred full-time, year-round Oklahoma employees, but

Oklahoma Statutes - Title 36. Insurance

less than three hundred full-time, year-round Oklahoma

employees,

b.

twenty-five percent (25%), if there are more than

three hundred full-time, year-round Oklahoma

employees, but less than four hundred full-time, yearround Oklahoma employees,

c.

thirty-five percent (35%), if there are more than four

hundred full-time, year-round Oklahoma employees, but

less than five hundred full-time, year-round Oklahoma

employees, or

d.

fifty percent (50%), if there are five hundred or more

full-time, year-round Oklahoma employees; and

2. Beginning July 1, 2010, in the calculation of the credit,

the amount to be apportioned to the Oklahoma Firefighters Pension

and Retirement Fund, the Oklahoma Police Pension and Retirement

System and the Law Enforcement Retirement Fund shall be applied

prior to the calculation of the credit. The amount of the credit

shall be derived from amounts remaining after the apportionment to

the Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma

Police Pension and Retirement System and the Law Enforcement

Retirement Fund. The credit shall be calculated by first applying a

“Home Office Credit Allotment Rate” of forty-seven percent (47%) to

the gross premium tax owed by the insurer and then determining the

allowable credit by applying the following percentages of the amount

due after the credits authorized by Sections 624.1 and 625 of this

title have been deducted:

a.

fifteen percent (15%), if there are more than two

hundred full-time, year-round Oklahoma employees, but

less than three hundred full-time, year-round Oklahoma

employees,

b.

twenty-five percent (25%), if there are more than

three hundred full-time, year-round Oklahoma

employees, but less than four hundred full-time, yearround Oklahoma employees,

c.

thirty-five percent (35%), if there are more than four

hundred full-time, year-round Oklahoma employees, but

less than five hundred full-time, year-round Oklahoma

employees, or

d.

fifty percent (50%), if there are five hundred or more

full-time, year-round Oklahoma employees.

B. A domestic insurer with four hundred or more full-time,

year-round Oklahoma employees which is subject to the tax imposed by

Section 624 of this title shall be entitled to a credit against said

tax actually paid to and placed in the General Revenue Fund of the

state, not including any of said tax monies placed in pension funds

and not including any of said tax monies placed in escrow, if,

during the year previous to the year for which the tax is being

Oklahoma Statutes - Title 36. Insurance

assessed, the insurer or its affiliate maintained a regional home

office in this state in a building owned or leased by the insurer

and during the year for which the tax is being assessed, the insurer

establishes its home office in this state in a building owned or

leased by the insurer. To receive a credit against the tax imposed

for the year in which the home office was established, said office

must have been maintained continuously from on or before August 1 of

that year through the last day of the calendar year. For succeeding

years, an insurer shall have maintained the home office continuously

from the first day of the calendar year for which the tax is imposed

through the last day of that calendar year. Insurers who take

action before August 1, 2000, to establish their home office in this

state shall be entitled to a credit against the tax imposed on or

after January 1, 2001, which shall be in addition to the credit the

insurer is entitled to for that year. The Home Office Credit shall

be calculated as follows:

1. Until June 30, 2010, the credit shall be equal to the

following percentages of the amount due after the credits authorized

by Sections 624.1 and 625 of this title have been deducted:

a.

thirty-five percent (35%), if there are more than four

hundred full-time, year-round Oklahoma employees, but

less than five hundred full-time, year-round Oklahoma

employees, or

b.

fifty percent (50%), if there are five hundred or more

full-time, year-round Oklahoma employees; and

2. Beginning July 1, 2010, in the calculation of the credit,

the amount to be apportioned to the Oklahoma Firefighters Pension

and Retirement Fund, the Oklahoma Police Pension and Retirement

System and the Law Enforcement Retirement Fund shall be applied

prior to the calculation of the credit. The amount of the credit

shall be derived from amounts remaining after the apportionment to

the Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma

Police Pension and Retirement System and the Law Enforcement

Retirement Fund. The credit shall be calculated by first applying a

“Home Office Credit Allotment Rate” of forty-seven percent (47%) to

the gross premium tax owed by the insurer and then determining the

allowable credit by applying the following percentages of the amount

due after the credits authorized by Sections 624.1 and 625 of this

title have been deducted:

a.

thirty-five percent (35%), if there are more than four

hundred full-time, year-round Oklahoma employees, but

less than five hundred full-time, year-round Oklahoma

employees, or

b.

fifty percent (50%), if there are five hundred or more

full-time, year-round Oklahoma employees.

C. A domestic insurer which is subject to the tax imposed by

Section 624 of this title shall be entitled to a credit against said

Oklahoma Statutes - Title 36. Insurance

tax actually paid to and placed in the General Revenue Fund of the

state, not including any of said tax monies placed in pension funds

and not including any of said tax monies placed in escrow, if,

during the year for which the tax is being assessed, the insurer

maintained a regional home office in at least five or more counties

in this state in buildings owned or leased by the insurer. To

receive a credit against the tax imposed for the year in which the

regional home offices were established, said offices must have been

maintained continuously from on or before August 1 of that year

through the last day of the calendar year. For succeeding years, an

insurer shall have maintained the regional home offices continuously

from the first day of the calendar year for which the tax is imposed

through the last day of that calendar year. The Home Office Credit

shall be calculated as follows:

1. Until June 30, 2010, the credit shall be equal to the

percentage of the amount due after the credits authorized by

Sections 624.1 and 625 of this title have been deducted as

established in subsection A of this section; and

2. Beginning July 1, 2010, in the calculation of the credit,

the amount to be apportioned to the Oklahoma Firefighters Pension

and Retirement Fund, the Oklahoma Police Pension and Retirement

System and the Law Enforcement Retirement Fund shall be applied

prior to the calculation of the credit. The amount of the credit

shall be derived from amounts remaining after the apportionment to

the Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma

Police Pension and Retirement System and the Law Enforcement

Retirement Fund. The credit shall be calculated by first applying a

“Home Office Credit Allotment Rate” of forty-seven percent (47%) to

the gross premium tax owed by the insurer and then determining the

allowable credit by applying the percentage of the amount due after

the credits authorized by Sections 624.1 and 625 of this title have

been deducted as established in subsection A of this section.

D. Proof that an insurer qualifies for the credit authorized by

this section shall be on forms prescribed by the Insurance

Commissioner and shall be submitted to the Commissioner annually

with the report which is filed pursuant to Section 624 of the

Insurance Code.

E. The credit provided for in subsections A, B and C of this

section shall be based on the total number of Oklahoma employees in

the regional or home office when a group of insurers which are under

common management and control maintain a regional home office or

home office in this state in a building owned or leased by the group

of insurers. The credit provided for in subsections A, B and C of

this section may be allocated among the insurance company and the

insurance company affiliates at the discretion of the insurance

company on a per-insurance-company basis.

F. As used in this section:

Oklahoma Statutes - Title 36. Insurance

1. "Regional home office" means an office transacting

insurance, as defined in Section 105 of this title, and performing

insurance company operations, which is defined as one or more or any

combination of the following functions and services performed in

connection with the development, sale, and administration of

products giving rise to receipts subject to a premium tax on

domestic and foreign insurance companies, or domestic or foreign

health care insurance corporations: actuarial, medical, legal,

investments, accounting, auditing, underwriting, policy issuance,

information, policyholder services, premium collection, claims,

advertising and publications, public relations, human resources,

marketing, sales office staff, training of sales and service

personnel, and clerical, managerial, and other support for any such

functions or services;

2. "Common management and control" means the possession, direct

or indirect, of the power to direct or cause the direction of the

management and policies of an insurer, whether through the ownership

of voting securities, by contract, or otherwise, unless the power is

executed by a person acting in an official capacity, performing

duties imposed and exercising authority granted because of the

person's position as an officer or employee of the insurer. Control

shall be presumed to exist if any person, directly or indirectly,

owns, controls, holds with the power to vote, or holds proxies

representing twenty-five percent (25%) or more of the voting

securities of the insurer;

3. “Oklahoma employees” means persons who are employed in

Oklahoma after January 1, 2000, and who are common law employees of

an insurance company or its affiliate. Oklahoma employees do not

include independent contractors or any persons to the extent that

the compensation of that person is based on commissions;

4. “Insurance company” means any entity subject to a premium

tax on domestic and foreign insurance companies, or domestic or

foreign health care insurance corporations, including the attorneyin-fact authorized by and acting for the subscribers of a reciprocal

insurer or inter-insurance exchange under powers of attorney. A

reciprocal and its attorney-in-fact shall be a single entity; and

5. “Home office” means the executive offices of an insurance

company which is domiciled in this state.

G. Each insurer or insurance group requesting a credit under

this section shall certify by affidavit, approved as to form by the

Commissioner, that the insurer has met all of the qualifications

required by this section and is authorized to a credit against the

premium tax which actually shall be paid to, and placed in the

General Revenue Fund of the state, exclusive of any amounts of the

tax which shall be credited to pension funds pursuant to law and

exclusive of any amounts which shall be placed into escrow. The

Commissioner may do an examination for the sole purpose of

Oklahoma Statutes - Title 36. Insurance

certifying that all requirements of this section are being met by

the insurer requesting to obtain any credits against premium tax.

H. For the fiscal year beginning July 1, 2006, and for each

fiscal year thereafter, and notwithstanding any other provisions of

Title 36 of the Oklahoma Statutes or any other provision of law

governing the order in which the credit authorized by this section

is to be deducted from the liability of the company claiming such

credit to the contrary, the credit authorized by this section shall

be deducted from the insurance premium tax liability of the company

claiming such credit prior to the deduction of any other credits

that may be claimed against such liability.

Added by Laws 1987, c. 137, § 1, eff. Nov. 1, 1987. Amended by Laws

2000, c. 346, § 1, eff. Jan. 1, 2001; Laws 2005, c. 381, § 2, eff.

July 1, 2006; Laws 2008, c. 344, § 1, eff. Nov. 1, 2008.