ADOPTED METROPOLITAN COUNCIL NOV. 25, 1992
AN ORDINANCE TO LEVY, COLLECT AND ENFORCE PAYMENT OF AN ANNUAL
LICENSE TAX ON EACH INSURER ENGAGED IN THE BUSINESS OF ISSUING OR RECEIVING PAYMENT FOR
ANY FORM OF INSURANCE POLICY OR CONTRACT ON RISKS LOCATED WITHIN THIS CITY OR PARISH, OR
ISSUING ANY FORM OF INSURANCE POLICY OR CONTRACT WITHIN THIS CITY OR PARISH ON RISKS
LOCATED ELSEWHERE WHEN NOT SUBJECT TO ANY OTHER MUNICIPAL OR PAROCHIAL LICENSE TAX AND
WHICH NOW OR HEREAFTER MAY BE SUBJECT TO THE PAYMENT OF ANY LICENSE TAX FOR STATE
PURPOSES; TO PRESCRIBE THE MODE AND MANNER OF FURNISHING CERTIFICATES REQUIRED HEREUNDER;
TO PROVIDE PENALTIES FOR THE ENFORCEMENT HEREOF; AND TO REPEAL ALL ORDINANCES IN CONFLICT
HEREWITH, AND TO PROVIDE THE EFFECT THEREOF.
BE IT ORDAINED by the Metropolitan Council of the Parish of East Baton
Rouge and the City of Baton Rouge:
Section 1. There is hereby levied an annual license tax for the
year 1993 and for each subsequent year, on each insurer engaged in the business of
issuing or which receives payment of the premium for any insurance policy or contract on
all risks located within the city or parish, whether said insurance policy or contract
originated in the City of Baton Rouge or Parish of East Baton Rouge, or elsewhere, or
engages in the business of issuing any insurance policy or contract within this city or
parish on risks located elsewhere, which are not subject to any other municipal or
parochial license tax, and which now or hereafter may be subject to the payment of a
license tax for state purposes under Louisiana Revised Statutes, Title 22, Section 1061,
et seq., and other applicable laws of Louisiana.
Section 2. The amount of the license tax levied herein in each
case is hereby fixed, determined and ordained to be the maximum amount which
municipalities are permitted to levy under, and shall be graded in accordance with the
provisions of Louisiana Revised Statutes, Title 22, Section 1061, et seq., and all other
applicable laws of Louisiana, all of which for all purposes of this ordinance are made a
part hereof by reference as fully as if written herein in extenso provided that the amount
of the minimum license hereby levied is fixed at ten (10%) percent of the gross premiums
collected during the preceding calendar year, provided in no event shall the minimum
exceed that set forth in Louisiana Revised Statutes, Title 22, Section 1076.
Section 3. Each insurer applying for a license hereunder shall
submit a sworn certificate in duplicate, on a form to be provided by the Director of
Finance certifying to the amount of business transacted during the preceding year in the
area included within the corporate limits of the City of Baton Rouge as extended on and
after January 1, 1949 or Parish of East Baton Rouge, payment in favor of the Collector of
City and Parish Taxes of the amount of said license to accompany the submission of said
certificate. One copy of the application submitted and the license issued shall be
forwarded forthwith to the Director of Finance by the Collector of City or Parish Taxes.
Section 4. All license taxes levied herein shall become
delinquent on the 1st day of June of the year when due.
Section 5. Every insurer required to pay any license tax
hereunder shall keep the receipt of payment issued by the Collector of City or Parish
Taxes readily available for any inquiry or other information requested in regard thereto.
In addition to the above requirement, each insurer licensed hereunder
shall furnish to the Director of Finance a list of all agents representing the insurer in
this city or parish.
Section 6. The amount of the license payable shall be one-third
of the amount otherwise fixed in this ordinance, if the payer will file a sworn statement
with the annual report required by this ordinance, showing that at least one-sixth of the
total admitted assets of the payer are invested and maintained in Louisiana Securities as
provided by the provisions of Louisiana Revised Statutes, Title 22, Section 1068.
Section 7(a). If the amount of the
tax levied is not paid on or before the first (1st) day of June of the year, there shall
be collected with this tax, interest upon this unpaid amount at the rate of 1-1/4% per
month, or fractional part thereof; and in addition, there shall also be collected a
penalty equivalent to 5% per month, or fractional part thereof, not to exceed 25% in
aggregate, of the tax due, when such license tax is not paid on the first (1st) day of
June; and both interest and penalty will be computed from the first (1st) day of June. All
interest and penalties due for subsequent months will be assessed and due on the first
(1st) day of each succeeding month. If the failure to pay any such tax when due is
explained to the satisfaction of the Director of Finance, he may remit or waive payment of
the whole, or any part of, any penalty, and may remit and waive any interest charged in
excess of the rate of 1-1/4% per month. In the event of suit, attorney's fees will be
charged at the rate of 10% on the aggregate of tax, interest and penalty. The Parish
Attorney is authorized to employ private counsel to assist in the collection of any
insurance premium taxes, penalties or interest due under this ordinance or to represent
him in any proceedings under this ordinance.
(b) In the event any insurer fails
to make a report and pay the tax as provided by this ordinance, or in case the insurer
makes a grossly incorrect report or a report that is false or fraudulent, it shall be the
duty of the Director of Finance to make an estimate for the taxable period of the gross
premiums of such insurer and assess and collect the tax and interest, plus penalty, if
such have accrued, on the basis of such assessment, which shall be considered prima facie
correct, and the burden to show the contrary shall rest upon the insurer.
(c) It shall be the duty of every insurer required to make
a report and pay any tax under this ordinance to keep and preserve suitable records of the
gross premiums taxable under this ordinance, and such other books of account as may be
necessary to determine the amount of tax due hereunder, and other information as may be
required by the Director of Finance; and it shall be the duty of every such insurer,
moreover, to keep and preserve for a period of three (3) calendar years, in addition to
the current year, all records of gross premiums or other subjects of taxation under this
ordinance; and all such books and other records shall be open to examination at all
reasonable hours by the Director of Finance or any of his duly authorized agents.
(d) Any information required during the conduct of the
audit shall be furnished to the Director of Finance or his duly authorized agent without
cost. Such information may include, but is not limited to, specialized reports
accumulating data from electronic data processing records.
(e) Failure to pay the tax levied by this ordinance shall
ipso facto, without demand or putting in default, cause the tax, interest, penalties, and
costs to become immediately delinquent, and the Director of Finance is hereby vested with
authority, on motion in a court of competent jurisdiction, to take a rule on the
delinquent taxpayer to show cause in not less than two or more than ten days, exclusive of
holidays, why the delinquent taxpayer should not be ordered to pay the total amount due
and owing under this ordinance. This rule may be tried out of term and in chambers and
shall always be tried by preference. If the rule is made absolute, the order therein
rendered shall be considered a judgment in favor of the City of Baton Rouge and Parish of
East Baton Rouge.
Section 8. As used herein,
"Collector of City or Parish Taxes" shall mean the Director of Finance of the
City of Baton Rouge and Parish of East Baton Rouge, unless under the provisions of Section
8.05 of the Plan of Government of the Parish of East Baton Rouge and City of Baton
Rouge, the Metropolitan Council of the City of Baton Rouge shall have entered into an
agreement with the Sheriff of East Baton Rouge Parish for the collection of City Taxes for
the year in question, in which latter event these words shall mean the Sheriff.
The term "Director of Finance" means and includes the
Director of Finance of the City of Baton Rouge and Parish of East Baton Rouge or his duly
Section 9. All ordinances or parts of ordinances in conflict
herewith are hereby repealed; but nothing contained herein shall prevent the collection of
any license tax, costs and penalties due the City of Baton Rouge or Parish of East Baton
Rouge on the effective date hereof, under the provisions of any ordinance or parts of
ordinances hereby repealed.
Section 10. If any provisions or item of this ordinance or the
application thereof is held invalid, such invalidity shall not affect other provisions,
items, or applications of this ordinance which can be given effect without the invalid
provisions, items, or applications, and to this end the provisions of this ordinance are
hereby declared severable.
Section 11. The Director
may revise, publish and adopt tax reporting forms, systems, and procedures which require
the reporting of summary tax amounts which have been rounded off to the nearest whole
dollar. The whole-dollar rounding off shall only be employed in reporting periodic summary
tax amounts as directed by the Director and shall not be applied to individual
transactions or tax applications.