2006 New York Code - Temporary Franchise Tax On Certain Insurance Companies.

 
    * §  9111.  Temporary franchise tax on certain insurance companies. 1.
  Imposition. (a) For the privilege of conducting business in  this  state
  and  in  addition  to  any other requirements therefore, every insurance
  company subject to the franchise  tax  imposed  by  subdivision  (a)  of
  section  fifteen  hundred  ten  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
  nine-tenths of one percent of all gross  direct  premiums,  less  return
  premiums   thereon,   written  during  calendar  year  nineteen  hundred
  ninety-two on risks located or residing in this state.
    (b) Determination of direct premiums--general provisions. (1) 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
  section there shall be  first  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
  section  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 section three hundred seven of
  this chapter.
    (2) The term "gross direct premiums," as used in this  section,  shall
  not  include  premiums  for  policies  issued  pursuant  to section four
  thousand two  hundred  thirty-six  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.
    (3) After determining the amount of total gross premiums, less returns
  thereon, as hereinbefore provided, there shall be deducted the following
  items:
    (A) 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;
    (B) 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.
    (4)  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.
    2.  Payment.  Taxes  due  under  this  section  shall  be  paid to the
  superintendent in such manner as the superintendent shall prescribe. The
  tax shall be paid in two installments. The first  installment  shall  be
  due March first, nineteen hundred ninety-three and shall be no less than
  ninety  percent  of  the  tax ultimately determined to be due under this
  section. The balance of any tax due shall be  paid  on  June  fifteenth,
  nineteen hundred ninety-three.
    3.  Returns  and  reports.  A  return,  in  a  form  prescribed by the
  superintendent, shall accompany the  tax  payment  due  June  fifteenth,
  nineteen  hundred  ninety-three.  In  addition,  the  superintendent may
  prescribe a return to accompany the first installment of tax  due  March
  first, nineteen hundred ninety-three.
    4.  Interest  and penalties.   * (a) Interest. If any amount of tax is
  not paid on or  before  the  date  prescribed  for  payment  thereof  in
  subsection  two  of  this section, interest on such amount of tax at the
  underpayment rate set  by  the  commissioner  of  taxation  and  finance
  pursuant  to  section one thousand ninety-six of the tax law, plus three
  percentage points, shall be paid to the superintendent  for  the  period
  from the date prescribed for payment until the date paid.
    * NB Applies to interest chargeable on or after April 1, 2003
    (b)  Underpayment  penalty.  If  the amount of tax paid by June first,
  nineteen hundred ninety-three is less than ninety-five  percent  of  the
  tax  ultimately determined to be due pursuant to this section, a penalty
  is hereby imposed equal to one hundred percent of the difference between
  the amount of tax actually paid  and  ninety-five  percent  of  the  tax
  ultimately  determined  to  be due. In addition, this penalty shall bear
  interest at the rate set forth in paragraph (a) of this  subsection  for
  the period from June first, nineteen hundred ninety-three until the date
  the penalty is paid.
    5.  Coordination  with  other  laws. Notwithstanding the provisions of
  section one thousand one hundred twelve  of  this  chapter,  taxes  paid
  pursuant  to  this section shall not be considered in the calculation of
  reciprocal taxes due this state pursuant to  section  one  thousand  one
  hundred  twelve  of  this  chapter.  Notwithstanding  the  provisions of
  subdivision (c) of section fifteen hundred eleven of the tax law,  taxes
  paid  to other states on account of the imposition of the tax imposed by
  this section shall not be included in the calculation of the tax  credit
  provided for by subdivision (c) of section fifteen hundred eleven of the
  tax law.
    * NB Null & void February 1, 1993 --See chap. 1/93 § 11