Tenn. Comp. R. & Regs. 0780-01-54-.12 - TAXES AND DELINQUENCIES
(1) Each pool shall
be subject to pay a tax on monies collected from members in the amount required
of insurance companies pursuant to T.C.A. §
56-4-206. Such tax shall also
include the surcharge imposed on insurance companies pursuant to T.C.A. §
56-4-206 to be earmarked for the
administration of the Tennessee Occupational Safety and Health Act, T.C.A.
§
50-3-101, et seq.
Assessments made by the pool or ordered by the Commissioner shall be taxed as
premium pursuant to this Rule.
(2)
Any pool failing and neglecting to make such returns and payments promptly and
correctly on or before the last day of the sixth (6th) month following the end
of the pool's fiscal year shall forfeit and pay to the Commissioner, in
addition to the amount of these taxes, an amount equal to five percent (5%) for
the first month or fractional part thereof of delinquency; provided, that
should the period of delinquency exceed one (1) month, the rate of penalty will
be an additional five percent (5%) for the second month or fractional part
thereof and penalty thereafter at the rate of one half of one percent (.5%) per
month of the amount of tax due, the maximum penalty not to exceed ten thousand
dollars ($10,000) for any pool not more than three (3) days delinquent. All
delinquencies shall bear interest at the rate of ten percent (10%) per annum
from the date the amount was due until paid. The penalty and interest herein
provided for shall apply to any part of the tax unpaid by the due date and no
such penalty or interest may be waived.
(3) The Commissioner has the discretion, for
good cause shown, upon application made at least thirty (30) days in advance of
delinquency date, to grant an extension of time determined by the Commissioner
but not to exceed sixty (60) days to a pool to file the premium tax returns and
pay the tax imposed by T.C.A. §
56-4-206, without penalty
attached, but such tax shall bear interest as herein provided from the date the
amount was due.
(4) Any pool
failing to pay the tax due plus penalty and interest for sixty (60) days beyond
the due date shall thereafter be barred from transacting any business of
insurance in the state until these taxes and penalties are fully paid, and the
Commissioner shall revoke the certificate of authority granted to the pool and
its administrator to transact business in the state.
(5) No grace period for the filing of returns
and payments shall be allowed except for the thirty (30) day extension provided
for in Paragraph (3) of this Rule. A premium tax return and payment made to the
Commissioner shall not be considered as paid on or before the due date unless:
(a) The premium tax return and payment are
received by the Commissioner on or before the due date;
(b) The premium tax return and payment bears
a post office cancellation mark stamped by the United States post office on or
before the due date, or are mailed by certified or registered mail, or have a
certificate of mailing on or before the due date. A premium tax return and
payment received by the Commissioner bearing a metered mail stamp and no post
office cancellation mark stamped by the United States post office shall be
deemed filed and received on the date such premium tax return arrives at the
Commissioner; or
(c) In the event a
premium tax return and payment are mailed but not received by the Commissioner,
or received and the cancellation mark is illegible or omitted, such return and
payment shall be deemed filed and received on the date they were mailed, if the
sender establishes that the premium tax return and payment were deposited in
the United States mail. In order to establish proof of mailing under these
circumstances, a record authenticated by the United States post office that the
original mailing was sent registered mail, certified mail, or by certificate of
mailing, shall be the only proof accepted by the Commissioner.
(6) A pool may receive a tax
credit in accordance with T.C.A. §
56-4-210.
Notes
Authority: T.C.A. §§ 50-6-405(c) and (h), 56-4-206, 56-4-210, 56-4-216 and 2005 Public Acts, Chapter 390.
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