§ 9110*2 — Temporary franchise tax on certain insurance companies

New York § 9110*2

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 91: Taxes and Fees

Text

* § 9110. Temporary franchise tax on certain insurance companies. 1.\nImposition. (a) For the privilege of conducting business in this state\nand in addition to any other requirements therefor, every insurance\ncompany subject to the franchise tax imposed by subdivision (a) of\nsection fifteen hundred ten of the tax law, other than insurance\ncompanies whose premiums are received solely as consideration for\naccident and health insurance policies, shall pay a franchise tax of\nthirty-five hundredths of one-percent on all gross direct premiums, less\nreturn premiums thereon, written during calendar year nineteen hundred\nninety-two on risks located or resident in this state.\n (b) Determination of direct premiums--general provisions. (1) The term\n"premium" includes all amounts received as consideration for insurance\ncontracts or reinsurance contracts, other than for annuity contracts,\nand shall include premium deposits, assessments, policy fees, membership\nfees, and every other compensation for such contract. In ascertaining\nthe amount of direct premiums upon which a tax is payable under this\nsection there shall be first determined the amount of total gross\npremiums or deposit premiums or assessments, less return thereon, on all\npolicies, certificates, renewals, policies subsequently cancelled,\ninsurance and reinsurance executed, issued or delivered on property or\nrisks located or resident in this state, including premiums for\nreinsurance assumed, and also including premiums written, procured or\nreceived in this state on business which cannot specifically be\nallocated or apportioned and reported as taxable premiums or which have\nbeen used as a measure of a tax on business of any other state or\nstates. Provided however, in the case of special risk premiums, direct\npremiums shall include only those premiums written, procured or received\nin this state on property or risks located or residents in this state.\nThe reporting of premiums for the purpose of the tax imposed by this\nsection shall be on a written basis or on a paid-for basis consistent\nwith the basis required by the annual statement filed with the\nsuperintendent of financial services pursuant to section three hundred\nseven of this chapter.\n (2) The term "gross direct premiums," as used in this section, shall\nnot include premiums for policies issued pursuant to section four\nthousand two hundred thirty-six of this chapter and premiums for\ninsurance upon hulls, freights, or disbursements, or upon goods, wares,\nmerchandise and all other personal property and interests therein, in\nthe course of exportation from, importation into any country, or\ntransportation coastwide, including transportation by land or water from\npoint of origin to final destination in respect to, appertaining to, or\nin connection with, any and all risks or perils of navigation, transit\nor transportation, and while being prepared for, and while awaiting\nshipment, and during any delays, storage, transshipment or reshipment\nincident thereto, including war risks and marine builder's risks.\n (3) After determining the amount of total gross premiums, less returns\nthereon, as hereinbefore provided, there shall be deducted the following\nitems:\n (A) Such premiums, less return premiums thereon, which have been\nreceived by way of reinsurance from corporations or other insurers\nauthorized to transact business in this state;\n (B) Dividends on such direct business, including unused or unabsorbed\nportions of premium deposits paid or credited to policyholders, but not\nincluding deferred dividends paid in cash to policyholders on maturing\npolicies, nor cash surrender values.\n (4) In determining the amount of direct premiums taxable in this\nstate, all such premiums written, procured or received in this state\nshall be deemed written on property or risks located or residents in\nthis state except such premiums as are properly allocated or apportioned\nand reported as taxable premiums or which have been used as a measure of\na tax of any other state or states, provided however, in the case of\nspecial risk premiums, direct premiums shall include only those premiums\nwritten, procured or received in this state on property or risks located\non resident in this state.\n 2. Payment. Taxes due under this section shall be paid to the\nsuperintendent of financial services in such manner as the\nsuperintendent shall prescribe. The tax shall be paid in two\ninstallments. The first installment shall be due December fifteenth,\nnineteen hundred ninety-two and shall be no less than ninety percent of\nthe tax ultimately determined to be due under this section. The balance\nof any tax due shall be paid on March fifteenth, nineteen hundred\nninety-three.\n 3. Returns and reports. A return, in a form prescribed by the\nsuperintendent, shall accompany the tax payment due March fifteenth,\nnineteen hundred ninety-three. In addition, the superintendent may\nprescribe a return to accompany the first installment of tax due\nDecember fifteenth, nineteen hundred ninety-two.\n 4. Interest and penalties. (a) Interest. If any amount of tax is not\npaid on or before the date prescribed for payment thereof in subsection\ntwo of this section, interest on such amount of tax at the underpayment\nrate set by the commissioner of taxation and finance pursuant to section\none thousand ninety-six of the tax law, plus one percentage point, shall\nbe paid to the superintendent for the period from the date prescribed\nfor payment until the date paid.\n (b) Underpayment penalty. If the amount of tax paid by March\nfifteenth, nineteen hundred ninety-three is less than ninety-five\npercent of the tax ultimately determined to be due pursuant to this\nsection, a penalty is hereby imposed equal to one hundred percent of the\ndifference between the amount of tax actually paid and ninety-five\npercent of the tax ultimately determined to be due. In addition, this\npenalty shall bear interest at the rate set forth in paragraph (a) of\nthis subsection for the period from March fifteenth, nineteen hundred\nninety-three until the date the penalty is paid.\n 5. Coordination with other laws. Notwithstanding the provisions of\nsection one thousand one hundred twelve of this chapter, taxes paid\npursuant to this section shall not be considered in the calculation of\nreciprocal taxes due this state pursuant to section one thousand one\nhundred twelve of this chapter. Notwithstanding the provisions of\nsubdivision (c) of section fifteen hundred eleven of the tax law, taxes\npaid to other states on account of the imposition of the tax imposed by\nthis section shall not be included in the calculation of the tax credit\nprovided for by subdivision (c) of section fifteen hundred eleven of the\ntax law.\n * NB There are 2 § 9110's\n