2023 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