2007 California Insurance Code Article 14. Tax Provisions

CA Codes (ins:1530-1531)

1530.  In lieu of all other taxes, licenses or fees whatever, state
or local,  each exchange and its corporate attorney in fact
considered as a single unit shall together pay annually on account of
the transaction of such business in this state, the same fees as are
paid by mutual insurers transacting the same kind of business, and
the annual tax imposed by Section 28 of Article XIII of the
Constitution of the State of California and by the applicable
provisions of the Revenue and Taxation Code, except that each
corporate attorney in fact of a reciprocal or interinsurance exchange
shall be subject to all taxes imposed upon other corporations doing
business in the state, other than taxes directly attributable to
property used exclusively in or on income derived from its principal
business as corporate attorney in fact.  In any event, such corporate
attorney in fact shall file an annual return and pay the minimum tax
provided for by Section 23151 of the Bank and Corporation Tax Law.
For the purposes of Section 12221 of the Revenue and Taxation Code,
the term gross premiums, as applied to reciprocal or interinsurance
exchanges, includes all sums paid by subscribers in this state by
reason of the insurance exchange, whether termed premium deposit,
membership fee, or otherwise, after deducting therefrom premium
deposit returns or cancellations, and all amounts returned to
subscribers or credited to their accounts as savings, but does not
include such sums received for reinsurance and for ocean marine
insurance.
   A corporate attorney in fact of each exchange shall annually
compute the amount of tax that would be payable by it under the
provisions of the Bank and Corporation Tax Law (Part 11 (commencing
with Section 23001) of Division 2 of the Revenue and Taxation Code)
except for the provisions of this section, and any management fee due
from each exchange to its corporate attorney in fact shall be
reduced pro tanto by a sum equivalent to the amount so computed.



1531.  (a) On and after January 1, 1994, and before January 1, 1995,
every exchange and its corporate attorney in fact that is considered
a single unit whose annual taxes exceed fifty thousand dollars
(,000) shall make payment by electronic funds transfer.  On and
after January 1, 1995, every exchange and its corporate attorney in
fact that is considered a single unit whose annual taxes exceed
twenty thousand dollars (,000) shall make payment by electronic
funds transfer.  The exchange and its corporate attorney in fact
considered as a single unit shall choose one of the acceptable
methods described in Section 45 for completing the electronic funds
transfer.
   (b) Payment is deemed complete on the date the electronic funds
transfer is initiated, if settlement to the state's demand account
occurs on or before the banking day following the date the transfer
is initiated.  If settlement to the state's demand account does not
occur on or before the banking day following the date the transfer is
initiated, payment is deemed to occur on the date settlement occurs.

   (c) (1) Any exchange and its corporate attorney in fact considered
as a single unit required to remit taxes by electronic funds
transfer pursuant to this section who remits those taxes by means
other than an appropriate electronic funds transfer, shall be
assessed a penalty in an amount equal to 10 percent of the taxes due
at the time of the payment.
   (2) If the department finds that the failure of an exchange and
its corporate attorney in fact, considered as a single unit, to make
payment by an appropriate electronic funds transfer in accordance
with subdivision (a) is due to reasonable cause or circumstances
beyond the exchange's and its corporate attorney in fact's control,
and occurred notwithstanding the exercise of ordinary care and in the
absence of willful neglect, that exchange and its corporate attorney
in fact shall be relieved of the penalty provided in paragraph (1).

   (3) Any exchange and its corporate attorney in fact seeking to be
relieved of the penalty provided in paragraph (1) shall file with the
department a statement under penalty of perjury setting forth the
facts upon which the claim for relief is based.