NY Ins L § 9111 (2021)
2021 New York Laws ISC - Insurance Article 91 - Taxes and Fees 9111 - Temporary Franchise Tax on Certain Insurance Companies.

* §  9111.  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 therefore, 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 nine-tenths of one percent of all gross  direct  premiums,  less  return premiums   thereon,   written  during  calendar  year  nineteen  hundred ninety-two on risks located or residing 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 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  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  county,  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 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.   2.  Payment.  Taxes  due  under  this  section  shall  be  paid to the superintendent in such manner as the superintendent shall prescribe. The tax shall be paid in two installments. The first  installment  shall  be due March first, nineteen hundred ninety-three 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  June  fifteenth, nineteen hundred ninety-three.   3.  Returns  and  reports.  A  return,  in  a  form  prescribed by the superintendent, shall accompany the  tax  payment  due  June  fifteenth, nineteen  hundred  ninety-three.  In  addition,  the  superintendent may prescribe a return to accompany the first installment of tax  due  March first, nineteen hundred ninety-three.   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 June first, 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 June first, 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 Null & void February 1, 1993 --See chap. 1/93 § 11