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§9111-a
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* §9111-a . Temporary franchise tax on certain insurance companies.
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§9111-a(a)
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(a) Imposition. (1) For the privilege of conducting business in this state and in addition to any other requirements therefor, every insurance company subject to the franchise tax imposed by subdivision (a) of §1510 of the tax law, other than insurance companies whose premiums are received solely as consideration for accident and health insurance policies, shall pay a franchise tax of 2% of all gross direct premiums, less return premiums thereon, written during the "event year", as such term is defined in the following sentence, on risks located or residing in this state. For the purposes of (this §) ,"event year" shall mean (A) the calendar year preceding the February 5th on which the budget director fails to provide a certification to the superintendent that the transfers to the general fund that have been authorized by §5500 e this chapter have been made or (B) the calendar year preceding the year in which a final judicial determination invalidating some or all the provisions such §5500 e requires a return from the general fund any or all the amounts transferred to such fund pursuant to such §5500 e.
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§9111-a(a)(2)
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(2) Determination of direct premiums-general provisions. (A) The term "premium" includes all amounts received as consideration for insurance contracts or reinsurance contracts, other than for annuity contracts, and shall include premium deposits, assessments, policy fees, membership fees, and every other compensation for such contract. In ascertaining the amount of direct premiums upon which a tax is payable under (this §) there shall be 1st determined the amount of total gross premiums or deposit premiums or assessments, less return thereon, on all policies, certificates, renewals, policies subsequently cancelled, insurance and reinsurance executed, issued or delivered on property or risks located or resident in this state, including premiums for reinsurance assumed, and also including premiums written, procured or received in this state on business which cannot specifically be allocated or apportioned and reported as taxable premiums or which have been used as a measure of a tax on business of any other state or states. Provided, however, in the case of special risk premiums, direct premiums shall include only those premiums written, procured or received in this state on property or risks located or resident in this state. The reporting of premiums for the purpose of the tax imposed by (this §) shall be on a written basis or on a paid-for basis consistent with the basis required by the annual statement filed with the superintendent of insurance pursuant to §307 of this chapter.
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§9111-a(a)(2)(B)
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(B) The term "gross direct premiums, " as used in (this §) ,shall not include premiums for policies issued pursuant to §4236 of this chapter and premiums for insurance upon hulls, freights, or disbursements, or upon goods, wares, merchandise and all other personal property and interests therein, in the course of exportation from, importation into any county, or transportation coastwide, including transportation by land or water from point of origin to final destination in respect to, appertaining to, or in connection with, any and all risks or perils of navigation, transit or transportation, and while being prepared for, and while awaiting shipment and during any delays, storage, transshipment or reshipment incident thereto, including war risks and marine builder's risks.
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§9111-a(a)(2)(C)
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(C) After determining the amount of total gross premiums, less returns thereon, as hereinbefore provided, there shall be deducted the following :
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§9111-a(a)(2)(C)(i)
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(i) Such premiums, less return premiums thereon, which have been received by way of reinsurance from corporations or other insurers authorized to transact business in this state;
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§9111-a(a)(2)(C)(ii)
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(ii) Dividends on such direct business, including unused or unabsorbed portions of premium deposits paid or credited to policyholders, but not including deferred dividends paid in cash to policyholders on maturing policies, nor cash surrender values.
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§9111-a(a)(2)(D)
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(D) In determining the amount of direct premiums taxable in this state, all such premiums written, procured or received in this state shall be deemed written on property or risks located or resident in this state except such premiums as are properly allocated or apportioned and reported as taxable premiums or which have been used as a measure of a tax of any other state or states, provided, however, in the case of special risk premiums, direct premiums shall include only those premiums written, procured or received in this state on property or risks located or resident in this state.
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§9111-a(b)
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(b) Payment. Taxes due under (this §) shall be paid to the superintendent in such manner as the superintendent shall prescribe. The tax shall be paid in 2 installments. The 1st installment shall be due within 30 days of the time at which the superintendent determines such tax is to be paid and shall be no less than 90% of the tax ultimately determined to be due under (this §) . The balance of any tax due shall be paid on the next succeeding March 25th.
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§9111-a(c)
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(c) Returns and reports. A return, in a form prescribed by the superintendent, shall accompany the tax payment due March 25th. In addition, the superin10dent may prescribe a return to accompany the 1st installment.
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§9111-a(d)
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(d) Interest and penalties. * (1) Interest. If any amount of tax is not paid on or before the date prescribed for payment thereof in paragraph (this sub§)(2) ,interest on such amount of tax at the underpayment rate set by the commissioner of taxation and finance pursuant to §1096 of the tax law, plus 3 percentage points, shall be paid to the superintendent for the period from the date prescribed for payment until the date paid.
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* NB Applies to interest chargeable on or after April 1, 2003
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§9111-a(d)(2)
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(2) Underpayment penalty. If the amount of tax paid by March 25th is less than 95% of the tax ultimately determined to be due pursuant to (this §) ,a penalty is hereby imposed equal to 100% of the difference between the amount of tax actually paid and 95% of the tax ultimately determined to be due. In addition, this penalty shall bear interest at the rate set forth in paragraph (this sub§)(1) for the period from the due date until the date the penalty is paid.
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§9111-a(e)
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(e) Coordination with other laws. Notwithstanding the provisions of §1112 of this chapter, taxes paid pursuant to (this §) shall not be considered in the calculation of reciprocal taxes due this state pursuant to §1112 of this chapter. Notwithstanding the provisions of subdivision (c) of §1511 of the tax law, taxes paid to other states on account of the imposition of the tax imposed by (this §) shall not be included in the calculation of the tax credit provided for by subdivision (c) of §1511 of the tax law.
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* NB Section null and void if schedule is submitted as provided for in §5516-e of the insurance law. Source Data downloaded: 2009-04-19 12: 18: 54; Processed: 2009-05-08 15: 36: 36
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