N.Y. Insurance Law § 9110*2: Temporary franchise tax on certain insurance companies

* § 9110. 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 therefor, 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

thirty-five hundredths of one-percent on all gross direct premiums, less

return premiums thereon, written during calendar year nineteen hundred

ninety-two on risks located or resident 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 residents 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 financial services 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 country, 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 residents 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

on resident in this state.

2. Payment. Taxes due under this section shall be paid to the

superintendent of financial services in such manner as the

superintendent shall prescribe. The tax shall be paid in two

installments. The first installment shall be due December fifteenth,

nineteen hundred ninety-two 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 March fifteenth, nineteen hundred

ninety-three.

3. Returns and reports. A return, in a form prescribed by the

superintendent, shall accompany the tax payment due March fifteenth,

nineteen hundred ninety-three. In addition, the superintendent may

prescribe a return to accompany the first installment of tax due

December fifteenth, nineteen hundred ninety-two.

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 one percentage point, shall

be paid to the superintendent for the period from the date prescribed

for payment until the date paid.

(b) Underpayment penalty. If the amount of tax paid by March

fifteenth, 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 March fifteenth, 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 There are 2 § 9110's