Termination of Local Government Premium Taxes for Vicco, KY and Remittance of Currently Held Taxes
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Notifies insurers and surplus lines brokers of the dissolution of Vicco, Kentucky and instructs actions for cessation, remittance or crediting of local government premium taxes (LGPT) and disposition of previously held LGPT funds.
No material clinical or coverage changes in this revision.
LGPT Remittance and Disposition Criteria
LGPT remittance and disposition criteria
Instructions for insurers and surplus lines brokers regarding handling, remittance, and disposition of Local Government Premium Tax (LGPT) for Vicco, KY following the city's dissolution:
If LGPT was collected after March 1, 2024
- Remit the LGPT back to the policyholders within 30 days of this bulletin; failure to do so may result in administrative action including civil penalties and interest.
- OR offer a credit of the LGPT amount to insureds on future premiums if the insured has a current policy.
Required Actions for Insurers and Brokers
Required actions on LGPT collection and remittance
Insurers and surplus lines brokers must immediately stop collecting local government premium taxes (LGPT) for the city of Vicco, KY effective March 1, 2024. Any LGPT collected for Vicco after March 1, 2024 must be remitted back to policyholders within 30 days or, alternatively, offered as a credit on future premiums for current policies; failure to remit may result in administrative action including civil penalties and interest. Where former Vicco locations now fall in Knott or Perry counties, redistribute collected amounts in accordance with the applicable county tax rate (example: 5% previously collected for a Knott County resident becomes 1% returned to the resident and 4% remitted to Knott County for most lines; health and life lines would be fully refunded).
- Cease all LGPT collection for Vicco, KY immediately (effective March 1, 2024).
- Remit LGPT collected after March 1, 2024 back to policyholders within 30 days or offer a credit on future premiums for active policies.
- Noncompliance may prompt administrative action, civil penalties, and application of interest.
- Redistribute taxes to the appropriate county tax rate where locations now fall in Knott or Perry counties (Knott County example: 4% county rate).
Disposition of previously held LGPT funds
Any LGPT collected prior to March 1, 2024 that is being held by an insurer or surplus lines broker (for example, in escrow) must be submitted to unclaimed property through the Kentucky State Treasurer within 30 days of this bulletin's execution.
- Submit held LGPT collected before March 1, 2024 to the Kentucky State Treasurer as unclaimed property within 30 days.
Key Definitions
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