AGO 84-4.
Case Date | March 05, 1984 |
Court | Colorado |
Colorado Attorney General Opinions
1984.
AGO 84-4.
March 5, 1984Department of Law
Attorney General Opinion FORMAL OPINION
of DUANE WOODARD
Attorney General Opinion No. 84-4
AG Alpha No. RG IN AGAMM
Daniel J. Colaiannia
Acting Insurance Commissioner
Colorado Division of
Insurance
First Western Plaza Bldg.
303 W. Colfax
Ave., 5th Floor
Denver, Colorado 80204 RE: The exemption from premium tax on premiums paid
by certain public entities pursuant to C.R.S. 1973, 10-3-209(1)(d)(IV)Dear Commissioner Colaiannia:
This opinion is in response to Commissioner Barnes' January 4,
1984 request for a formal attorney general's opinion regarding the exemption of
premium tax on premiums paid by certain public entities.
QUESTIONS PRESENTED AND CONCLUSIONS
The request for an attorney general's opinion presents the
following five questions:
Are premiums paid by the employer, which employer is the state or
appropriate governmental entity within the state, properly interpreted as not
being subject to the premium tax?
Premiums paid by public entities are exempt when certain
conditions have been met.
Where the governmental entity, as an employer, pays part of the
premium and the employee pays the balance, is only the portion of the premium
paid by the state exempt from premium tax?
Yes.
Are premiums on insurance under deferred compensation plans
subject to premium tax under circumstances where the premium amount is not
deemed taxable income to the employee?
Yes.
Do the conclusions reached with regard to the foregoing questions
apply equally to domestic and foreign insurance companies licensed in Colorado?
Except for the retaliatory tax and certain provisions covering
insurance business done by fraternal and benevolent associations and certain
domestic insurance companies which issued policies prior to 1959, the statute
draws no distinction between foreign and domestic insurance companies.
Does the retaliatory tax provision, C.R.S. 1973, 10-3-209(2),
apply to foreign insurers otherwise eligible for the premium tax exemption?
Yes.
ANALYSIS
C.R.S. 1973, 10-3-209 levies a tax, to be paid by all insurance
companies doing business in this state, on all premiums collected or contracted
for on insurance covering property or risks located in this state. C.R.S. 1973,
10-3-209(1)(d) sets out certain exemptions to this tax one of which concerns
premiums paid by certain governmental entities. The pertinent language of that
subsection reads as follows:
(IV) Except to the extent provided in subsection (2) of this
section, the tax imposed by this section ... shall not apply to premiums
collected or contracted for after December 31, 1968, on policies...
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