NY Tax L § 1510 (2021)
2021 New York Laws TAX - Tax Article 33 - Franchise Taxes on Insurance Corporations 1510 - 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 financial services 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 financial services, 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 financial services 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, reinsurance contracts or contracts  with  health  maintenance organizations for health services, 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  financial  services 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. The term "gross direct premiums," as used in this section,  also  shall  not include  any premiums that this state is prohibited from taxing pursuant to federal law, including (i) subsection (f) of section 8909 of title  5 of  the  united  states code, (ii) subsection (g) of section 1395w-24 of title 42 of the united states code,  (iii)  subsection  (g)  of  section 1395w-112  of  title 42 of the United States code, and (iv) subparagraph (B) of paragraph (4) of subsection (k) of section 1395mm of title 42  of the United States code.  (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 financial services 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 financial services.  (1)  The  superintendent of financial services 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 financial services 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 financial services within the time  required  for  the filing  of  such  return  (with  regard to any extension of time for the filing thereof), the superintendent of financial services 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 financial services 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 financial services 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 financial services 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 financial services,  as  the commissioner  finds necessary in order to facilitate such administration and collection.