2006 New York Code - Computation Of Entire Net Income.

 
    §  1502-b.  Computation of tax for captive insurance companies. (a) In
  lieu of the taxes and tax surcharge imposed by sections fifteen  hundred
  one,  fifteen hundred two-a, fifteen hundred five-a, and fifteen hundred
  ten of this article, every captive insurance  company  licensed  by  the
  superintendent  of  insurance  pursuant  to  the  provisions  of article
  seventy of the insurance law, other than the metropolitan transportation
  authority and a public benefit corporation or not-for-profit corporation
  formed by a city with a population of one million or  more  pursuant  to
  subsection (a) of section seven thousand five of the insurance law, each
  of  which  is  expressly  exempt  from  the  payment  of  fees, taxes or
  assessments  whether  state  or  local,  shall,  for  the  privilege  of
  exercising  its  corporate  franchise, pay a tax on (1) all gross direct
  premiums, less return premiums thereon,  written  on  risks  located  or
  resident  in  this  state and (2) all assumed reinsurance premiums, less
  return premiums thereon, written on risks located or  resident  in  this
  state.  The  rate  of  the tax imposed on gross direct premiums shall be
  four-tenths of one percent on all  or  any  part  of  the  first  twenty
  million  dollars  of premiums, three-tenths of one percent on all or any
  part of the second twenty million dollars of premiums, two-tenths of one
  percent on all or any part  of  the  third  twenty  million  dollars  of
  premiums,  and seventy-five thousandths of one percent on each dollar of
  premiums thereafter. The rate of the tax on assumed reinsurance premiums
  shall be two hundred twenty-five thousandths of one percent  on  all  or
  any  part  of  the first twenty million dollars of premiums, one hundred
  and fifty thousandths of one percent on all or any part  of  the  second
  twenty  million dollars of premiums, fifty thousandths of one percent on
  all or any part of the third twenty  million  dollars  of  premiums  and
  twenty-five  thousandths  of  one  percent  on  each  dollar of premiums
  thereafter. The tax imposed by  this  section  shall  be  equal  to  the
  greater  of  (i) the sum of the tax imposed on gross direct premiums and
  the tax imposed on assumed reinsurance premiums or  (ii)  five  thousand
  dollars.
    (b)  In  determining  the  amount  of gross direct premiums or assumed
  reinsurance premiums  taxable  in  this  state,  all  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.
    (c) The definition of the term "premium" set forth in subdivision  (c)
  of  section  fifteen  hundred  ten  of  this article shall apply to this
  section.  In addition, "gross direct premium"  shall  be  determined  as
  provided  in  such  subdivision  (c).  Provided,  however, that the term
  "premium" shall also include any amount received by a captive  insurance
  company  as  consideration for insurance provided, in the case of a pure
  captive insurance company, to its parents and affiliated companies, and,
  in the case of a group captive  insurance  company,  to  the  industrial
  insureds  that  comprise  the  industrial insured group. The terms "pure
  captive  insurance  company",   "group   captive   insurance   company",
  "industrial insureds" and "industrial insured group" shall have the same
  meanings  as  such  terms  have  in  section  seven  thousand two of the
  insurance law. 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 seven thousand
  six of the insurance law.
    (d) The superintendent of insurance shall have the  same  power,  duty
  and responsibility to examine the returns of captive insurance companies
  as such superintendent has with respect to insurance corporations as set
  forth in subdivision (e) of section fifteen hundred ten of this article.
    (e)  The  credits  set forth in section fifteen hundred eleven of this
  article shall not be allowed against the tax imposed by this section.