AN ORDINANCE
Amending The Business License Ordinance
Provisions For Insurance Companies and
For Brokers For Non-admitted Fire and Casualty Insurers
BE IT ORDAINED by the Mayor and Council of the City/Town of ___________, that the
Business License Ordinance is amended by changing the provisions for insurance companies and
for brokers for non-admitted fire and casualty insurers to read as follows:
SECTION 1.
SIC NAICS
CODE or CODE
63 5241 Insurance Companies: Except as to fire insurance, 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, 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 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% of Gross Premiums
633-635 524126 Fire and Casualty....................................................2% of Gross Premiums
636 524127 Title Insurance.......................................................2% of Gross Premiums
6411 524210 Brokers for Fire and Casualty Insurers - Non-admitted:
As to brokers for non-admitted fire and casualty insurers, gross
premiums means gross premiums collected by or for fire and
casualty insurers not licensed in South Carolina (1) on policies on
property or risks located in the municipality and/or (2) on policies,
wherever the insured property or risk is located, that are sold,
solicited, negotiated, taken, transmitted, received, delivered,
Revised 10/2004
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. ............................................... 2% of Gross Premiums
[Premiums for non-admitted business are not included in broker's
gross commissions for other business. Declining rates shall not
apply.]
SECTION 2.
Notwithstanding any other provisions of this ordinance, license taxes for insurance companies
and brokers for non-admitted fire and casualty insurers shall be payable on or before May 31 in
each year without penalty. The penalty for delinquent payments shall be 5% of the tax due per
month, or portion thereof, after the due date until paid.
SECTION 3.
Any exemptions in the business license ordinance 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.
SECTION 4.
The Agreement with the Municipal Association of South Carolina, pursuant to S. C. Code
section 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.
All ordinances in conflict with this ordinance are hereby repealed.
This ordinance shall be effective on the date of final reading.
_________________________________
Mayor
ATTEST:
_________________________________
Clerk
First reading: ____________
Final reading:____________
Revised 10/2004