Local governments in Kentucky can collect an insurance premium tax on nearly every type of insurance. Health insurance, life insurance, car insurance homeowner's insurance, boat insurance and everything else.. You name the insurance and it can be taxed.
The insurance companies collect the tax as part of the insurance bill you pay. KRS 91A.080 even allows the insurance company to receive a percentage as payment for handling the collection. The tax is not itemized on your insurance bill. The tax is built in and it is totally invisible.
Louisville Metro collects 5% of your insurance premiums as tax. The insurance companies send the money directly to the local government.
The City of West Buechel charges 10% on every allowed type of insurance.