NU Online News Service, Dec. 4, 2:35 p.m. – AFLAC Inc., Columbus, Ga., says it plans to get away from high Georgia taxes on insurance premiums by moving the official headquarters of its biggest insurance subsidiary to Nebraska, from Columbus.
AFLAC will redomesticate the subsidiary, American Family Life Assurance Company of Columbus, by establishing a customer service call center in Nebraska that will employ at least 100 people, the company says.
AFLAC is still looking for a location for the call center, but it says it hopes to complete the redomestication process by the end of the year.
“The premium tax rate in Georgia is among the highest in the country and is more than double the premium tax rate of Nebraska,” the company said in a statement explaining the move. “AFLAC has suffered significant financial impact as a result of the retaliatory provisions in the tax laws of other states, which allow them to charge Georgia companies the higher Georgia rates in their states.”
AFLAC paid about $5.3 million in extra taxes outside of Georgia in 2000 as a result of the high Georgia premium taxes, AFLAC says.
The company says it picked Nebraska as the new official home for its insurance subsidiary because Nebraska is already home to many insurance companies and has a large insurance labor force.