§ 14-39. Insurance companies.

(a)

Generally.

(1)

On gross premiums collected through offices or agents located in the town, wherever the risk is located, or collected on policies written on property or risks located in the town, wherever the premiums are collected.

(2)

Gross premiums shall include new and renewal business without deductions for any divided, credit, return premiums or deposit.

(3)

Solicitation for insurance, receiving or transmitting an application or policy, examination of a risk, collection or transmitting of a premium, adjusting a claim, delivering a benefit, or doing any act in connection with a policy or claim shall constitute doing business within the town whether or not an office is maintained herein. A premium collected on property or risk located within the town shall be deemed to have been collected within the municipality.

(b)

Fees.

Life, health and accident [Declining rates shall not apply]	0.75 percent of gross premiums
Fire and casualty	2 percent of gross premiums
Brokers for fire and casualty insurers non-admitted	2 percent of gross premiums

 

(c)

Collection of gross premiums. On gross premiums collected on policies of companies not licensed in the state, the broker shall pay annually, to the Municipal Association of South Carolina, with a copy of the report required by the insurance commission showing location of the risks insured. [Premiums for non-admitted business are not included in broker's gross commissions for other business. Declining rates shall not apply.]

(d)

Due date. Notwithstanding any other provisions of this section, license taxes for insurance companies and brokers for non-admitted insurers shall be payable on or before July 31 in each year without penalty. The penalty for delinquent payments shall be ten percent in the tax due per month, or portion thereof, after the due date until paid.

(e)

Insurance premiums. The license tax on insurance premiums is as follows:

SIC CODE	NAICS CODE
63	5241	Insurance companies: Except as to fire insurance, the term "gross premiums" means gross premiums collected (1) on policies on property or risks located in the municipality; and (2) on policies, wherever the insured property or risk is located, that are sold, solicited, negotiated, taken, transmitted, received, delivered, applied for, produced or serviced by the insurance company's office located in the municipality or by the insurance company's employee doing business within the municipality or by the office of the insurance company's licensed or appointed producer (agent) located in the municipality or by the insurance company's licensed or appointed producer (agent) doing business within the municipality. As to fire insurance, the term "gross premiums" means gross premiums (1) collected in the municipality, and/or (2) realized from risks located within the limits of the municipality.
		Gross premiums shall include new and renewal business without deductions for any dividend, credit, return on premiums or deposit.
		Solicitation for insurance, receiving or transmitting an application or policy, examination of a risk, collection or transmitting of a premium, adjusting a claim, delivering a benefit, or doing any act in connection with a policy or claim shall constitute doing business within the municipality whether or not an office is maintained therein. A premium collected on property or a risk located within the municipality shall be deemed to have been collected within the municipality. Declining rates shall not apply.
631-632	52411	Life, health and accident	0.75 percent of gross premiums
633-635	524126	Fire and casualty	2 percent of gross premiums
636	524127	Title insurance	2 percent of gross premiums
6411	524210	Brokers for fire and casualty insurers, non-admitted: As to brokers for non-admitted fire and casualty insurers, the term "gross premiums" means gross premiums collected by or for fire and casualty insurers not licensed in the state (1) on policies on property or risks located in the municipality; and/or (2) on policies, wherever the 2 percent of gross premiums insured property or risk is located, that are sold, solicited, negotiated, taken, transmitted, received, delivered, applied for, produced or serviced by a broker located in or doing business within the municipality. Brokers shall provide, with their payment of the tax, a copy of the report required by the state department of insurance showing the locations of the property or risks insured. [Premiums for non-admitted business are not included in broker's gross commissions for other business. Declining rates shall not apply.]	2 percent of gross premiums

 

(f)

Exemptions. Any exemptions in the business license article for income from business in interstate commerce are hereby repealed. Gross income from interstate commerce shall be included in the gross income for every business subject to a business license tax.

(g)

Collection of delinquent taxes. The agreement with the Municipal Association of South Carolina, pursuant to S.C. Code 1976, § 5-7-300, for collection of current and delinquent license taxes from insurance companies and brokers for non-admitted fire and casualty insurers shall continue in effect.

(Ord. No. 2013-14-8, 6-23-2014)