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Exemptions
Certain insurers and premiums are exempt from the Insurance Premium Tax.
| The following taxable insurers do not have to pay the Insurance Premium Tax: |
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a fraternal benefit society |
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a purely mutual corporation that earned 100% of its net premium income from the insurance of religious institutions, schools or charitable organizations |
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a purely mutual corporation that earned at least 50% of its net premium income from the insurance of farm property |
In computing net taxable premiums, the following premiums should be deducted from gross premiums reported on the Insurance Premium Tax Return. Premiums exempt from tax include: |
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premiums received as consideration for an annuity contract |
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premiums received from another taxable insurer under a contract of reinsurance |
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premiums paid under a contract of marine insurance that is not pleasure craft insurance |
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premiums paid for medical services or health care under a medical services or health care plan approved by regulation |
Gross premiums reported on the Insurance Premium Tax Return should include all reinsurance assumed.
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