§ 1505 — Limitation on tax

New York § 1505

• Jurisdiction: New York
• Law TAX: Tax
• Art. 33: Franchise Taxes On Insurance Corporations

Text

§ 1505. Limitation on tax. (a) (1) Domestic, foreign and alien\ninsurance corporations except life insurance corporations.\nNotwithstanding the provisions of sections fifteen hundred one and\nfifteen hundred ten of this article, and except as otherwise provided in\nparagraph two of this subdivision, the amount of taxes imposed under\nsuch sections for taxable years beginning on or after January first,\nnineteen hundred seventy-seven and before January first, two thousand\nthree, computed without regard to any credits allowable against such tax\nother than those credits provided under subdivisions (g) and (h) of\nsection fifteen hundred eleven of this article, shall not exceed an\namount computed as if such taxes were determined solely under section\nfifteen hundred ten, except that for purposes of the limitation provided\nherein, the rate of tax under such section shall be deemed to be (i) two\nand six-tenths percent for taxable years beginning on or after January\nfirst, nineteen hundred seventy-seven and before July first, two\nthousand, (ii) two and four tenths percent for taxable years beginning\nafter June thirtieth, two thousand and before July first, two thousand\none, (iii) two and two tenths percent for taxable years beginning after\nJune thirtieth, two thousand one and before July first, two thousand\ntwo, and (iv) two percent for taxable years beginning after June\nthirtieth, two thousand two.\n (2) Domestic, foreign and alien life insurance corporations. The\nprovisions of this paragraph shall apply to taxpayers subject to tax\nunder paragraph one of subdivision (b) of section fifteen hundred ten of\nthis article. Notwithstanding the provisions of sections fifteen hundred\none and fifteen hundred ten of this article, the amount of taxes imposed\nunder such sections for taxable years beginning on or after January\nfirst, nineteen hundred seventy-seven, computed without regard to any\ncredits allowable against such tax other than those credits provided\nunder subdivisions (g) and (h) of section fifteen hundred eleven of this\narticle, shall not exceed an amount computed as if such taxes were\ndetermined solely under section fifteen hundred ten, except that for\npurposes of the limitation provided herein, the rate of tax under such\nsection shall be deemed to be (i) two and six-tenths percent for taxable\nyears beginning on or after January first, nineteen hundred\nseventy-seven and before January first, nineteen hundred ninety-eight,\nand (ii) two percent for taxable years beginning on or after January\nfirst, nineteen hundred ninety-eight.\n (b) Notwithstanding the provisions of sections fifteen hundred one and\nfifteen hundred ten of this article, in the case of taxpayers subject to\ntax under subdivision (b) of section fifteen hundred ten, the total\namount of tax imposed under this article, computed before the\napplication of any credits allowable against such tax, shall in no event\nbe less than the amount computed as if such tax was determined solely\nunder section fifteen hundred ten, except that the rate of tax under\nsection fifteen hundred ten shall be deemed to be one and five-tenths\npercent.\n (c) For purposes of the limitation set forth in subdivision (a) of\nthis section, in the case of an insurance corporation more than\nninety-five percent of whose premiums are received as consideration for\nannuity contracts or are for policies and insurance described in\nparagraph two of subdivision (c) of section fifteen hundred ten of this\narticle, in determining the amount of tax computed solely under section\nfifteen hundred ten of this article, gross direct premiums subject to\ntax under such section shall include such amounts received as\nconsideration for annuity contracts and premiums for policies and\ninsurance, including any separate costs assessed by such insurance\ncorporation upon its policyholders, described in paragraph two of\nsubdivision (c) of such section that exceed ninety-five percent of all\npremiums received, including consideration for annuity contracts and\npremiums for policies and insurance (and any separate costs assessed by\nsuch insurance corporations upon its policyholders) described in\nparagraph two of subdivision (c) of such section.\n