NY Ins L § 9110-2 (2021)
2021 New York Laws ISC - Insurance Article 91 - Taxes and Fees 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