Insurance Premium Tax Services
The Louisiana Municipal Association, through its wholly owned subsidiary, LaMATS, provides a helpful service to municipalities with collecting insurance premium taxes.
For more than two decades, LaMATS has offered a valuable service to help municipalities collect insurance premium taxes (IPT). The program now boasts more than 200 municipalities and several parishes who have entrusted LaMATS to carry out all functions of collecting their IPT. The reason for this is simple: the LaMATS service has been proven to increase collections, streamline the process, and significantly reduce delinquent tax payments from insurance companies. The insurance industry appreciates that there is a single collection point for municipalities, because it saves them time and money when making their annual payment.
The fee for this service is only 3% of the taxes processed. Most municipalities experience an increase in overall IPT revenues after contracting with LaMATS, so the service may very well pay for itself each year.
A similar LaMATS program offers to pursue collection of delinquent insurance premium taxes for the past three years (plus the current one). This collection program is very comprehensive and requires little effort on the part of the municipality. LaMATS will conduct a thorough analysis of the premiums reported and tax payments received from insurance companies and compare this data to what each company reported to the state.
The entire process takes between 3 – 6 months to complete, depending on the number of accounts. LaMATS will serve as the municipality’s representative throughout the collection period, taking all phone calls and inquiries from companies when a payment is in question. The cost for this service is 10% of what is recovered and remitted to the municipality (who would have otherwise likely received no payment at all).
For more information contact Cliff Palmer, LaMATS Executive Director, at firstname.lastname@example.org or (225) 316-7157.