https://minnesotalawyer.com/statutes/chapter-297i/Recent content in Chapter 297I — Tax Imposed on MinnesotaLawyer.comHugoen-ushttps://minnesotalawyer.com/statutes/chapter-297i/297i.01/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.01/This section defines the key terms used throughout Chapter 297I, which governs the insurance premium tax that insurance companies pay to Minnesota. Terms like ‘insurer,’ ‘domestic company,’ ‘foreign company,’ ‘gross premiums,’ ‘health maintenance organization,’ and related concepts are defined here. These definitions control who owes the premium tax and how the taxable amounts are calculated.https://minnesotalawyer.com/statutes/chapter-297i/297i.05/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.05/This section imposes the insurance premium tax on Minnesota insurance companies. The basic rate is two percent of all gross premiums received for direct business in Minnesota, minus return premiums. Different rules apply to different types of insurers—township mutual companies, health maintenance organizations, surplus lines brokers, and others pay at different rates or on different bases. The section also covers special rules for captive insurers and other specialty entities.https://minnesotalawyer.com/statutes/chapter-297i/297i.06/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.06/This section requires insurers selling homeowners and certain commercial fire policies in Minnesota to collect a surcharge of 0.65 percent of premiums, which goes to fund fire safety programs. The surcharge must be listed separately on the policyholder’s bill or policy declaration. Township mutual fire insurance companies are subject to different surcharge rules. The money goes to fund fire safety and prevention programs administered by the state.https://minnesotalawyer.com/statutes/chapter-297i/297i.10/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.10/This section requires insurance companies to pay a two percent surcharge on fire, lightning, and sprinkler leakage premiums for property in Minnesota’s first-class cities (Minneapolis and Saint Paul) when the firefighters’ special fund in those cities has a shortfall. The commissioner of revenue collects the surcharge and distributes it to the affected cities twice a year, in July and December, to help fund firefighter retirement benefits.https://minnesotalawyer.com/statutes/chapter-297i/297i.11/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.11/This section requires auto insurers to collect a surcharge of 50 cents per vehicle per six months of coverage from policies that include comprehensive coverage. The surcharge funds the automobile theft prevention program run by the Bureau of Criminal Apprehension. Insurers must separately list the surcharge on policyholder bills and remit the collected amounts to the commissioner of revenue. The surcharge applies to passenger cars, pickup trucks, vans, and SUVs.https://minnesotalawyer.com/statutes/chapter-297i/297i.15/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.15/This section lists certain types of insurance premiums that are exempt from the insurance premium tax. Exempt premiums include those under the Minnesota Comprehensive Health Insurance Plan and Medicare-related payments from the federal government. Coverage under the Minnesota Employees Insurance Program is also exempt. These exemptions prevent double taxation of government-funded insurance programs and reduce costs for public insurance programs.https://minnesotalawyer.com/statutes/chapter-297i/297i.20/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.20/Insurance companies can reduce their Minnesota premium tax by the amount of certain assessments they have paid to insurance guaranty associations that protect policyholders when an insurer becomes insolvent. The offset is spread over five years, with 20 percent of the assessment deductible in each of the five years following the year of payment. Offsets are also available for contributions to the workers’ compensation reinsurance association.https://minnesotalawyer.com/statutes/chapter-297i/297i.25/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.25/This section requires certain brokers and agents—particularly those who place business with unlicensed foreign insurers—to file information returns with the Department of Revenue. The returns must report premiums received for risks located in Minnesota. This ensures that insurance premium tax is collected even when the insurer itself is not licensed or registered in Minnesota.https://minnesotalawyer.com/statutes/chapter-297i/297i.26/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.26/Licensed insurance companies must file annual reports by March 1 with the commissioner of revenue showing the fire and police coverage premiums they collected in Minnesota during the prior year. These reports are used to calculate fire state aid and police state aid distributions to municipalities. The commissioner sets the form and content of the reports and can penalize companies that fail to file on time.https://minnesotalawyer.com/statutes/chapter-297i/297i.30/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.30/Insurance companies subject to the premium tax must file annual returns by March 1 of the following year, covering the prior calendar year’s activity. Surplus lines brokers and certain other insurers have different filing deadlines. The commissioner can grant extensions for good cause if requested before the deadline. Late filings are subject to penalties under section 297I.85.https://minnesotalawyer.com/statutes/chapter-297i/297i.35/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.35/Insurance companies must pay all premium tax and surcharges owed at the same time they file their annual return, which is due March 1. Payments must be made electronically if the company’s tax liability exceeds a certain threshold. Late payments incur interest from the due date. Companies that have made sufficient estimated tax payments throughout the year may owe little or nothing at the annual filing deadline.https://minnesotalawyer.com/statutes/chapter-297i/297i.40/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.40/Large insurance companies must make quarterly estimated premium tax payments to the commissioner of revenue on March 15, June 15, September 15, and December 15 of each year. Each installment must equal one-fourth of the company’s estimated total annual tax. Companies that fail to make adequate estimated payments may owe an underpayment penalty in addition to the regular annual tax. Safe harbor rules allow companies to base estimates on prior year liability in some circumstances.https://minnesotalawyer.com/statutes/chapter-297i/297i.45/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.45/This section was repealed in 2005 as part of a reorganization of the insurance premium tax laws. The content that was formerly here has been moved to other sections of Chapter 297I or to other chapters governing insurance company taxation. This section no longer contains active law.https://minnesotalawyer.com/statutes/chapter-297i/297i.50/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.50/This section was repealed in 2005 as part of a reorganization of the insurance premium tax laws. The content that was formerly here has been moved to other sections of Chapter 297I or to other chapters governing insurance company taxation. This section no longer contains active law.https://minnesotalawyer.com/statutes/chapter-297i/297i.55/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.55/This section was repealed in 2005 as part of a reorganization of the insurance premium tax laws. The content that was formerly here has been moved to other sections of Chapter 297I or to other chapters governing insurance company taxation. This section no longer contains active law.https://minnesotalawyer.com/statutes/chapter-297i/297i.60/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.60/Insurance companies that overpay their premium tax can file a written claim for a refund. The claim must describe who is filing, when the tax was paid, how much was overpaid, and why. A claim for refund can be the annual return itself if it shows an overpayment. The commissioner reviews the claim and refunds or credits any amount determined to be erroneously paid. There are time limits for filing refund claims.https://minnesotalawyer.com/statutes/chapter-297i/297i.65/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.65/The commissioner of revenue generally has 3.5 years from the date a return is filed to assess additional insurance premium tax. The limitations period is longer if the return was not filed, if the taxpayer committed fraud, or if the parties agreed in writing to extend the period. This time limit protects insurance companies from having very old tax years reopened long after records may have been disposed of.https://minnesotalawyer.com/statutes/chapter-297i/297i.70/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.70/Insurance companies have 3.5 years from the original return due date, or one year from an assessment order, whichever is later, to file a claim for refund of premium tax overpayments. Claims filed after the main 3.5-year period but within the one-year post-assessment window are limited to the issues raised in the assessment. After these deadlines pass, refund claims are barred even if the company can prove it overpaid.https://minnesotalawyer.com/statutes/chapter-297i/297i.75/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.75/The commissioner of revenue and an insurance company can agree in writing to extend the normal time limits for assessing additional tax or filing a refund claim. The extension must be agreed to before the original period expires. Extensions can be renewed multiple times in writing. A refund claim can be filed up to six months after an agreed-upon extended assessment period expires.https://minnesotalawyer.com/statutes/chapter-297i/297i.80/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.80/Unpaid insurance premium tax and surcharges bear interest from the date they were due until the date they are paid. The interest rate is the same rate that applies to other Minnesota taxes under section 270C.40. When the state owes a refund, the state also pays interest on the refund amount. Interest compounds and cannot be waived except in very limited circumstances.https://minnesotalawyer.com/statutes/chapter-297i/297i.85/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.85/Insurance companies that fail to file returns on time face a five percent late-filing penalty on unpaid tax. A separate late-payment penalty of five percent applies when tax is not paid by the due date. Additional penalties apply for negligent or intentional disregard of the law, and for fraudulent evasion of tax. The commissioner has authority to assess civil penalties up to $50 per day for some violations.https://minnesotalawyer.com/statutes/chapter-297i/297i.90/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.90/Criminal penalties apply when someone knowingly fails to file a required insurance premium tax return (gross misdemeanor) or willfully evades or attempts to evade the tax (felony). These are serious criminal charges that go beyond civil tax penalties. Corporate officers and employees who are responsible for the company’s tax compliance can be personally criminally liable for willful violations.https://minnesotalawyer.com/statutes/chapter-297i/297i.95/Mon, 01 Jan 0001 00:00:00 +0000https://minnesotalawyer.com/statutes/chapter-297i/297i.95/This section was repealed in 2005 as part of a reorganization of the insurance premium tax laws. The content that was formerly here has been moved to other sections of Chapter 297I or to other chapters governing insurance company taxation. This section no longer contains active law.