Premium tax on insurance carriers, purpose, rate, how determined
Insurance companies and employers that cover workers for job injuries in Missouri have to pay a special tax. The tax is based on the premiums or money they collect for that coverage. Starting in 1994, a director figures out each year how much tax is needed to run the workers' compensation program, and the tax rate can go up to 2%.
287.690. on , purpose, rate, how determined. — Prior to December 31, 1993, for the purpose of providing for the expense of ing this chapter, every person, , association, , whether organized under the laws of this or any other state or country, the state of Missouri, including any of its s, s, agencies, , and boards or any of the state who or hold themselves out to be any part , company, mutual company, the parties to any , or other plan or scheme, and every other , insuring employers in this state against for personal injuries to their employees, or for death caused thereby, under this chapter, shall pay, as provided in this chapter, tax upon the , or received, whether in cash or notes in this state, or on account of business done in this state, for such insurance in this state at the rate of two percent all other taxes on such net deposits, net premiums or net assessments, which amount of taxes shall be assessed and collected as herein provided. Beginning October 31, 1993, and every year thereafter, the of the shall estimate the amount of revenue required to administer this chapter and the director shall determine the rate of tax to be paid in the following this section commencing with the calendar year beginning on January 1, 1994. If the balance of the estimated to be on hand on December thirty-first of the year each tax rate is made is less than one hundred ten percent of the previous year's expenses plus any additional revenue required due to new statutory requirements given to the division by the , then the director shall impose a tax not to exceed two percent in lieu of all other taxes on net deposits, net premiums or net assessments, rounded up to the nearest one-half of a percentage point, which amount of taxes shall be assessed and collected as herein provided. The net for individual self-insured employers shall be based on average rate s calculated by the department of commerce and insurance as taken from rates filed by the twenty insurance companies providing the greatest volume of coverage in this state. For employers qualified to self-insure their liability pursuant to this chapter, the rates filed by such group of employers in accordance with 4 of section 287.280 shall be the net premium equivalent. Any group of political subdivisions of this state qualified to self-insure their liability pursuant to this chapter as by section 537.620 may choose either the average rate classification method or the filed rate method, provided that the method used may only be changed once without receiving the of the director of the division of workers' compensation. Every required to pay the tax imposed pursuant to this section and section 287.730 shall be notified by the division of workers' compensation within ten days of the date of the determination of the rate of tax to be imposed for the following year. Net premiums, net deposits or net assessments are defined as , gross or gross less or returned , premium deposits or assessments and less dividends or savings, actually paid or credited.
(RSMo 1939 § 3755, A.L. 1955 p. 590, A.L. 1971 H.B. 321, A.L. 1987 H.B. 564, A.L. 1988 H.B. 1244, A.L. 1993 S.B. 251, A.L. 1994 S.B. 701, A.L. 2018 S.B. 981, A.L. 2023 S.B. 101)
Prior revision: 1929 § 3365
Effective 1-01-25, see § 287.922
or may make , when, 374.245
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Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.