2006 New York Code - Additional Franchise Tax On Insurance Corporations.

 
    §  1510.  Additional  franchise  tax  on  insurance  corporations. (a)
  Domestic, foreign and alien insurance corporations except life insurance
  corporations.  Except  as  hereinafter  provided,  for   taxable   years
  beginning  before  January  first,  two  thousand  three  every domestic
  insurance corporation, every foreign  insurance  corporation  and  every
  alien  insurance  corporation,  other than such corporations transacting
  the business of life insurance, (1) authorized to transact  business  in
  this  state  under a certificate of authority from the superintendent of
  insurance or  (2)  which  is  a  risk  retention  group  as  defined  in
  subsection  (n)  of  section  five  thousand  nine  hundred  two  of the
  insurance  law,  shall,  for  the  privilege  of  exercising   corporate
  franchises  or  for  carrying  on  business  in a corporate or organized
  capacity within this state, and in addition to any other  taxes  imposed
  for  such privilege, pay a tax on all gross direct premiums, less return
  premiums thereon, written on risks located or resident  in  this  state.
  The  rate  of  tax  imposed  by this subdivision shall be two percent on
  premiums  written  on  or  after   January   first,   nineteen   hundred
  seventy-four  and  before  January first, nineteen hundred seventy-five,
  one and nine-tenths percent on premiums  written  on  or  after  January
  first,  nineteen hundred seventy-five and before January first, nineteen
  hundred seventy-six, one and eight-tenths percent on premiums written on
  or after January first, nineteen hundred seventy-six and before  January
  first,  nineteen  hundred  seventy-eight,  one and two-tenths percent on
  premiums  written  on  or  after   January   first,   nineteen   hundred
  seventy-eight  and before January first, nineteen hundred ninety-two and
  one and three-tenths percent on premiums written on and after such date.
  Provided, however, that the rate of tax imposed by this  subdivision  on
  all  gross  direct  premiums, less return premiums thereon, for accident
  and health insurance contracts shall be one and six-tenths  percent  for
  such  premiums  written  on  or  after  January  first, nineteen hundred
  seventy-four and before January first, nineteen  hundred  seventy-eight,
  and  one  percent  for  such premiums written on or after January first,
  nineteen hundred seventy-eight.
    (b) Domestic, foreign  and  alien  life  insurance  corporations.  (1)
  Except   as   hereinafter   provided,   every  domestic  life  insurance
  corporation, and every foreign  and  alien  life  insurance  corporation
  authorized  to  transact  business  in this state under a certificate of
  authority from the superintendent of insurance, shall, for the privilege
  of exercising corporate franchises or for  carrying  on  business  in  a
  corporate  or  organized  capacity within this state, and in addition to
  any other taxes imposed for such privilege,  pay  a  tax  on  all  gross
  direct  premiums,  less  return  premiums  thereon,  received in cash or
  otherwise on  risks  resident  in  this  state,  including  supplemental
  contracts  for  total  and  permanent disability benefits and accidental
  death benefits. The rate of such tax shall be  (i)  one  and  six-tenths
  percent  on  such  premiums received on or after January first, nineteen
  hundred  seventy-four  and  before  January  first,   nineteen   hundred
  seventy-eight,  (ii)  one  percent on such premiums received on or after
  January first, nineteen hundred seventy-eight and before January  first,
  nineteen  hundred  eighty-seven,  (iii)  eight-tenths  percent  on  such
  premiums  received  on  or  after  January   first,   nineteen   hundred
  eighty-seven  and  before  January first, nineteen hundred ninety-eight,
  and (iv) seven-tenths percent on such  premiums  received  on  or  after
  January first, nineteen hundred ninety-eight.
    (2)  Every  such  life  insurance  corporation  which  shall  obtain a
  certificate of authority to transact business in this state or a renewal
  of such certificate from the superintendent of insurance shall, upon the
  expiration of such certificate for any cause  or  upon  its  ceasing  to
  transact  new  business  in  this  state, continue to pay a tax upon its
  business remaining in force in this state at the rate and as computed in
  this subdivision.
    (c) 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,  any  separate costs by carriers assessed upon their policyholders
  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 returns 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 the insurance law.
    (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 the insurance law  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  country, or
  transportation coastwise, 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) Such premiums, less  return  premiums  thereon,  which  have  been
  received  by  way of reinsurance from corporations or other insurers not
  authorized to transact business in this state to the  extent  that  such
  premiums  relate  to transactions (i) that are authorized by section two
  thousand one hundred five of the insurance law with  respect  to  excess
  line  insurance,  and  (ii)  with  respect  to which sums are payable by
  licensed excess line brokers to the superintendent of insurance pursuant
  to section two thousand one hundred eighteen of the insurance law; and
    (C) 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.
    (e) Powers and duties of the superintendent of insurance.
    (1)  The  superintendent  of  insurance  shall,  on  behalf   of   the
  commissioner, have the power, duty and responsibility to examine returns
  of  an  insurance corporation filed with him pursuant to section fifteen
  hundred fifteen and, together with  any  other  information  within  his
  possession  or  that  may  come  into  his  possession, to ascertain the
  correct amount of tax  imposed  under  this  section  of  any  insurance
  corporation. For the purpose of ascertaining the correctness of any such
  tax  imposed under this section or for the purpose of making an estimate
  of the tax liability under this section of  any  insurance  corporation,
  the  superintendent  shall  have  the  power to examine or cause to have
  examined by any agent or  representative  designated  by  him  for  that
  purpose,  any  books,  papers,  records  or  memoranda  bearing upon the
  matters required to be included in the return.
    (2) If the superintendent of insurance ascertains that the  amount  of
  tax  imposed  under this section as shown on the return of any insurance
  corporation is less than the amount of  tax  disclosed  by  his  or  her
  examination,  he  or  she shall propose, in writing, to the commissioner
  the issuance of a notice  of  deficiency  for  the  amount  due.  If  an
  insurance  corporation fails to file a return with the superintendent of
  insurance within the time required for the filing of such  return  (with
  regard   to   any  extension  of  time  for  the  filing  thereof),  the
  superintendent of insurance shall make an estimate of the amount of  tax
  due for the period in respect to which such insurance corporation failed
  to  file  the  return.  The  estimate  shall  be made from any available
  information which is in the possession or may come into  the  possession
  of  the superintendent of insurance and he shall propose, in writing, to
  the commissioner the issuance of a notice of deficiency for  the  amount
  of such estimated tax. Any proposal pursuant to this paragraph shall set
  forth the basis thereof and the details of its computation.
    (3)  The  commissioner  shall,  on  receipt  of  a  proposal  from the
  superintendent  of  insurance  pursuant  to  paragraph   two   of   this
  subdivision, review such proposal and if satisfied as to the correctness
  thereof  shall  take  appropriate  action  under  this  chapter  for the
  assessment and collection of the amount of tax, together  with  interest
  and  penalties,  either  shown  by  such proposal to be due or which the
  commissioner ascertains to be due. The provisions  of  this  subdivision
  shall not in any way be deemed to limit the power of the commissioner to
  conduct  such  examination,  or  investigation  as it deems necessary in
  order to carry out its duties with respect to the  taxes  imposed  under
  this section.
    (4)  Subject  to  the  consent  of the superintendent of insurance and
  notwithstanding any  other  provisions  of  law  to  the  contrary,  the
  commissioner  may  delegate  such  other of his or her powers and duties
  with respect to the administration and collection of the  taxes  imposed
  under   this   section  to  the  superintendent  of  insurance,  as  the
  commissioner finds necessary in order to facilitate such  administration
  and collection.