(1) (a) A member insurer may offset against its premium tax, income tax, or franchise tax liability to this state an assessment described in Subsection 31A-28-109(2)(b) to the extent of 20% of the amount of the assessment for each of the five calendar years following the year in which the assessment was paid. (b) To the extent that the offsets described in Subsection (1)(a) exceed tax liability, the offsets may be carried forward and used to offset tax liability in future years. (c) If a member insurer ceases doing business, all uncredited assessments may be credited against its tax liability for the year it ceases doing business. (2) (a) A member insurer that is exempt from taxes described in Subsection (1) may recoup the member insurer's assessment by a surcharge on premiums in a sum reasonably calculated to recoup the assessments over a reasonable period of time, as approved by the commissioner. (b) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax, income tax, franchise tax, producer commission, or, to the extent allowed under federal law, medical loss ratio. (c) If a member insurer collects excess surcharges, the member insurer shall remit the excess amount to the association, and the excess amount shall be applied to reduce future assessments in the appropriate account. (3) (a) Money shall be paid by the member insurers to the state in a manner required by the State Tax Commission if the money: (i) is acquired by refund in accordance with Subsection 31A-28-109(6) from the association by member insurers; and (ii) has been offset against taxes as provided in Subsection (1). (b) The association shall notify the commissioner that the refunds described in Subsection (3)(a) have been made.
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