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Note 7 - Income Taxes
9 Months Ended
Sep. 30, 2014
Notes  
Note 7 - Income Taxes

Note 7 – Income Taxes

 

Effective income tax rates were 13% and 10% during the three-month periods ended September 30, 2014 and 2013, respectively.  During the nine-month period comparable periods, effective income tax rates were 10%.  The Company has elected to be, and is, treated as an S corporation for income tax reporting purposes.  Taxable income or loss of an S corporation is passed through to, and included in the individual tax returns, of the shareholders of the Company, rather than being taxed at the corporate level.  Notwithstanding this election, income taxes are reported for, and paid by, the Company's insurance subsidiaries, as they are not allowed by law to be treated as S corporations, as well as for the Company in Louisiana, which does not recognize S corporation status.  The tax rates of the Company’s insurance subsidiaries are below statutory rates due to investments in tax exempt bonds held by the Company’s property insurance subsidiary.