40-252d.Credit against premium tax for salariespaid to Kansasemployees.(a) For tax years 2001 and thereafter,each company requiredto pay a tax on premiums under subsections A, C, D or F of K.S.A. 40-252 andamendments thereto shall beallowed as a credit against such tax 15% of the salaries paidto Kansasemployees. Before taking into account any other credit or offset against thetax on premiums imposed under K.S.A. 40-252 and amendments thereto, the creditallowed under this section may not reduce such tax by more than 1.125%ofpremiums taxablethereunder for tax years 2001 and thereafter, or 1% ofpremiumstaxable thereunder for tax years 2001 and thereafter if such credit iscalculated in accordance with the provisions of subsection (c).
(b) As used in this section, unless the context otherwise requires:
(1) "Affiliate" means an insurance company which, directly or indirectly,through one or more intermediaries, controls, is controlled by or is undercommon control with another insurance company. "Affiliate" also includes anycompany or business entity other than an insurance company which, directly orindirectly,through one or more intermediaries, controls, is controlled by or is undercommon control with an insurance company and which performs insurance companyoperations for an insurance company. For purposes of this definition, controlexists if any company or business entity, directly or indirectly, owns, holdswith the power to vote or holds proxies representing all the voting stock orother voting securities of any other company or business entity.
(2) "Insurance company" or "company" means any entity subject to a tax onpremiums under subsections A, C, D or F of K.S.A. 40-252 and amendmentsthereto, including the attorney-in-fact authorized by and acting for thesubscribers of a reciprocal insurer or inter-insurance exchange under powers ofattorney. For the purpose of this section, a reciprocal and itsattorney-in-fact will be considered a single entity.
(3) "Insurance company operations" means one or more or any combination ofthe following functions or services performed in connection with thedevelopment, sale and administration of products giving rise to receiptssubject to a tax on premiums under subsection A, C, D or F of K.S.A. 40-252 andamendments thereto: Actuarial, medical, legal, investments, accounting,auditing, underwriting, policy issuance, information, policyholder services,premium collection, claims, advertising and publications, public relations,human resources, marketing, sales office staff, training of sales and servicepersonnel, and clerical, managerial and other support for any such functions orservices.
(4) "Kansas employees" means persons who are employed in Kansas and who arecommon law employees of an insurance company or its affiliate. "Kansasemployees" does not include independent contractors or any person to the extentsuch person's compensation is based on commissions.
(5) "Salaries" means gross compensation paid to Kansas employees as reportedto the State of Kansas for income tax purposes for the calendar year for whicha tax on premiums is imposed under K.S.A. 40-252 and amendments thereto, butonly to the extent compensation is paid for insurance company operationsperformed in Kansas for an insurance company or its insurance companyaffiliates subject to the tax on premiums under subsection A, C, D or F ofK.S.A. 40-252 and amendments thereto. "Salaries" does not include compensationbased on commissions.
(c) For an insurance company having affiliates:
(1) Salaries paid by a noninsurance company affiliate shall be allocatedamong insurance company affiliates pursuant to the agreement between or amongthe insurance company and its affiliates.
(2) The gross amount of all premiums of an insurance company subject to taxunder subsection A, C, D or F of K.S.A. 40-252 and amendments thereto and thoseof its insurance company affiliates subject to such tax may be aggregated. Inaddition, all salaries paid to Kansas employees may be aggregated. Subject tothe limitation on the salary credit set forth in subsection (a) of thissection, the total allowable salary credit may be determined as if all theaggregated premiums were received and all the aggregated salaries were paid byone insurance company. Once the totalallowable salary credit is determined for all insurance company affiliates, thetotal credit may be allocated among the insurance company and its insurancecompany affiliates at the discretion of the insurance company on a perinsurance company basis, subject to the limitation on the salary credit as setforth in subsection (a) of this section.
(d) The computation of salaries, the allowable salary credit and theallocation of the credit among insurance company affiliates shall be made onforms supplied by the commissioner of insurance.
(e) For purposes of calculating any tax due under K.S.A. 40-253 andamendments thereto from a taxpayer not organized under the laws of this state,the credit allowed by this section shall be treated as a tax paid under K.S.A.40-252 and amendments thereto.
History: L. 1997, ch. 175, § 7;L. 2001, ch. 205, § 1; July 1.
40-252d.Credit against premium tax for salariespaid to Kansasemployees.(a) For tax years 2001 and thereafter,each company requiredto pay a tax on premiums under subsections A, C, D or F of K.S.A. 40-252 andamendments thereto shall beallowed as a credit against such tax 15% of the salaries paidto Kansasemployees. Before taking into account any other credit or offset against thetax on premiums imposed under K.S.A. 40-252 and amendments thereto, the creditallowed under this section may not reduce such tax by more than 1.125%ofpremiums taxablethereunder for tax years 2001 and thereafter, or 1% ofpremiumstaxable thereunder for tax years 2001 and thereafter if such credit iscalculated in accordance with the provisions of subsection (c).
(b) As used in this section, unless the context otherwise requires:
(1) "Affiliate" means an insurance company which, directly or indirectly,through one or more intermediaries, controls, is controlled by or is undercommon control with another insurance company. "Affiliate" also includes anycompany or business entity other than an insurance company which, directly orindirectly,through one or more intermediaries, controls, is controlled by or is undercommon control with an insurance company and which performs insurance companyoperations for an insurance company. For purposes of this definition, controlexists if any company or business entity, directly or indirectly, owns, holdswith the power to vote or holds proxies representing all the voting stock orother voting securities of any other company or business entity.
(2) "Insurance company" or "company" means any entity subject to a tax onpremiums under subsections A, C, D or F of K.S.A. 40-252 and amendmentsthereto, including the attorney-in-fact authorized by and acting for thesubscribers of a reciprocal insurer or inter-insurance exchange under powers ofattorney. For the purpose of this section, a reciprocal and itsattorney-in-fact will be considered a single entity.
(3) "Insurance company operations" means one or more or any combination ofthe following functions or services performed in connection with thedevelopment, sale and administration of products giving rise to receiptssubject to a tax on premiums under subsection A, C, D or F of K.S.A. 40-252 andamendments thereto: Actuarial, medical, legal, investments, accounting,auditing, underwriting, policy issuance, information, policyholder services,premium collection, claims, advertising and publications, public relations,human resources, marketing, sales office staff, training of sales and servicepersonnel, and clerical, managerial and other support for any such functions orservices.
(4) "Kansas employees" means persons who are employed in Kansas and who arecommon law employees of an insurance company or its affiliate. "Kansasemployees" does not include independent contractors or any person to the extentsuch person's compensation is based on commissions.
(5) "Salaries" means gross compensation paid to Kansas employees as reportedto the State of Kansas for income tax purposes for the calendar year for whicha tax on premiums is imposed under K.S.A. 40-252 and amendments thereto, butonly to the extent compensation is paid for insurance company operationsperformed in Kansas for an insurance company or its insurance companyaffiliates subject to the tax on premiums under subsection A, C, D or F ofK.S.A. 40-252 and amendments thereto. "Salaries" does not include compensationbased on commissions.
(c) For an insurance company having affiliates:
(1) Salaries paid by a noninsurance company affiliate shall be allocatedamong insurance company affiliates pursuant to the agreement between or amongthe insurance company and its affiliates.
(2) The gross amount of all premiums of an insurance company subject to taxunder subsection A, C, D or F of K.S.A. 40-252 and amendments thereto and thoseof its insurance company affiliates subject to such tax may be aggregated. Inaddition, all salaries paid to Kansas employees may be aggregated. Subject tothe limitation on the salary credit set forth in subsection (a) of thissection, the total allowable salary credit may be determined as if all theaggregated premiums were received and all the aggregated salaries were paid byone insurance company. Once the totalallowable salary credit is determined for all insurance company affiliates, thetotal credit may be allocated among the insurance company and its insurancecompany affiliates at the discretion of the insurance company on a perinsurance company basis, subject to the limitation on the salary credit as setforth in subsection (a) of this section.
(d) The computation of salaries, the allowable salary credit and theallocation of the credit among insurance company affiliates shall be made onforms supplied by the commissioner of insurance.
(e) For purposes of calculating any tax due under K.S.A. 40-253 andamendments thereto from a taxpayer not organized under the laws of this state,the credit allowed by this section shall be treated as a tax paid under K.S.A.40-252 and amendments thereto.
History: L. 1997, ch. 175, § 7;L. 2001, ch. 205, § 1; July 1.
40-252d.Credit against premium tax for salariespaid to Kansasemployees.(a) For tax years 2001 and thereafter,each company requiredto pay a tax on premiums under subsections A, C, D or F of K.S.A. 40-252 andamendments thereto shall beallowed as a credit against such tax 15% of the salaries paidto Kansasemployees. Before taking into account any other credit or offset against thetax on premiums imposed under K.S.A. 40-252 and amendments thereto, the creditallowed under this section may not reduce such tax by more than 1.125%ofpremiums taxablethereunder for tax years 2001 and thereafter, or 1% ofpremiumstaxable thereunder for tax years 2001 and thereafter if such credit iscalculated in accordance with the provisions of subsection (c).
(b) As used in this section, unless the context otherwise requires:
(1) "Affiliate" means an insurance company which, directly or indirectly,through one or more intermediaries, controls, is controlled by or is undercommon control with another insurance company. "Affiliate" also includes anycompany or business entity other than an insurance company which, directly orindirectly,through one or more intermediaries, controls, is controlled by or is undercommon control with an insurance company and which performs insurance companyoperations for an insurance company. For purposes of this definition, controlexists if any company or business entity, directly or indirectly, owns, holdswith the power to vote or holds proxies representing all the voting stock orother voting securities of any other company or business entity.
(2) "Insurance company" or "company" means any entity subject to a tax onpremiums under subsections A, C, D or F of K.S.A. 40-252 and amendmentsthereto, including the attorney-in-fact authorized by and acting for thesubscribers of a reciprocal insurer or inter-insurance exchange under powers ofattorney. For the purpose of this section, a reciprocal and itsattorney-in-fact will be considered a single entity.
(3) "Insurance company operations" means one or more or any combination ofthe following functions or services performed in connection with thedevelopment, sale and administration of products giving rise to receiptssubject to a tax on premiums under subsection A, C, D or F of K.S.A. 40-252 andamendments thereto: Actuarial, medical, legal, investments, accounting,auditing, underwriting, policy issuance, information, policyholder services,premium collection, claims, advertising and publications, public relations,human resources, marketing, sales office staff, training of sales and servicepersonnel, and clerical, managerial and other support for any such functions orservices.
(4) "Kansas employees" means persons who are employed in Kansas and who arecommon law employees of an insurance company or its affiliate. "Kansasemployees" does not include independent contractors or any person to the extentsuch person's compensation is based on commissions.
(5) "Salaries" means gross compensation paid to Kansas employees as reportedto the State of Kansas for income tax purposes for the calendar year for whicha tax on premiums is imposed under K.S.A. 40-252 and amendments thereto, butonly to the extent compensation is paid for insurance company operationsperformed in Kansas for an insurance company or its insurance companyaffiliates subject to the tax on premiums under subsection A, C, D or F ofK.S.A. 40-252 and amendments thereto. "Salaries" does not include compensationbased on commissions.
(c) For an insurance company having affiliates:
(1) Salaries paid by a noninsurance company affiliate shall be allocatedamong insurance company affiliates pursuant to the agreement between or amongthe insurance company and its affiliates.
(2) The gross amount of all premiums of an insurance company subject to taxunder subsection A, C, D or F of K.S.A. 40-252 and amendments thereto and thoseof its insurance company affiliates subject to such tax may be aggregated. Inaddition, all salaries paid to Kansas employees may be aggregated. Subject tothe limitation on the salary credit set forth in subsection (a) of thissection, the total allowable salary credit may be determined as if all theaggregated premiums were received and all the aggregated salaries were paid byone insurance company. Once the totalallowable salary credit is determined for all insurance company affiliates, thetotal credit may be allocated among the insurance company and its insurancecompany affiliates at the discretion of the insurance company on a perinsurance company basis, subject to the limitation on the salary credit as setforth in subsection (a) of this section.
(d) The computation of salaries, the allowable salary credit and theallocation of the credit among insurance company affiliates shall be made onforms supplied by the commissioner of insurance.
(e) For purposes of calculating any tax due under K.S.A. 40-253 andamendments thereto from a taxpayer not organized under the laws of this state,the credit allowed by this section shall be treated as a tax paid under K.S.A.40-252 and amendments thereto.
History: L. 1997, ch. 175, § 7;L. 2001, ch. 205, § 1; July 1.
