Revenue Capture

Insurance Premium and Occupational License Tax Services

The Louisiana Municipal Association, through its wholly owned subsidiary, LaMATS, provides a helpful service to municipalities with collecting insurance premium and occupational license 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).

 

Several municipalities have contracted with Revenue Discovery Systems (RDS) through LaMATS to manage their Occupational License Tax (OLT) collection, since that program first became available several years ago. This program streamlines the often difficult process of ensuring businesses apply, renew, and pay the correct amount of tax each year. Once the business has satisfied all requirements, a business license is provided. This is a low-cost service that benefits the business owner by providing options like convenient online license renewals and payments. Municipal officials like it because it frees up the staff to concentrate on other services and responsibilities.

 

As you begin the process of planning for next year, take time to look at the IPT and OLT services offered by LaMATS. With so many cities, towns, and villages taking advantage of these valuable services, you can contact mayors and clerks from your area to ask their opinions on the benefits and cost effectiveness of the IPT and OLT programs.

 

More information can be found at www.LaMATS.net, or you may contact Cliff Palmer, LaMATS Executive Director, at cpalmer@lamats.net or (225) 316-7157.

© 2019 Louisiana Municipal Advisory and Technical Services Bureau in association with LMA

  • Now on Twitter
  • Facebook Social Icon