HF 755

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; changing the gross premiums tax 
  1.3             rate imposed on certain insurance companies; amending 
  1.4             Minnesota Statutes 1994, sections 60A.15, subdivision 
  1.5             1; and 69.021, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 60A.15, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [DOMESTIC AND FOREIGN COMPANIES.] (a) On or 
  1.10  before April 1, June 1, and December 1 of each year, every 
  1.11  domestic and foreign company, including town and farmers' mutual 
  1.12  insurance companies, domestic mutual insurance companies, marine 
  1.13  insurance companies, health maintenance organizations, 
  1.14  integrated service networks, community integrated service 
  1.15  networks, and nonprofit health service plan corporations, shall 
  1.16  pay to the commissioner of revenue installments equal to 
  1.17  one-third of the insurer's total estimated tax for the current 
  1.18  year.  Except as provided in paragraphs (b) (d) and (e), 
  1.19  installments must be based on a sum equal to two percent of the 
  1.20  premiums described in paragraph (c) (b). 
  1.21     (b) For town and farmers' mutual insurance companies and 
  1.22  mutual property and casualty insurance companies other than 
  1.23  those (i) writing life insurance, or (ii) whose total assets on 
  1.24  December 31, 1989, exceeded $1,600,000,000, the installments 
  1.25  must be based on an amount equal to the following percentages of 
  2.1   the premiums described in paragraph (c): 
  2.2      (1) for premiums paid after December 31, 1988, and before 
  2.3   January 1, 1992, one percent; and 
  2.4      (2) for premiums paid after December 31, 1991, one-half of 
  2.5   one percent. 
  2.6      (c) Installments under paragraph (a), (b) (d), or (e) are 
  2.7   percentages of gross premiums less return premiums on all direct 
  2.8   business received by the insurer in this state, or by its agents 
  2.9   for it, in cash or otherwise, during such year. 
  2.10     (d) (c) Failure of a company to make payments of at least 
  2.11  one-third of either (1) the total tax paid during the previous 
  2.12  calendar year or (2) 80 percent of the actual tax for the 
  2.13  current calendar year shall subject the company to the penalty 
  2.14  and interest provided in this section, unless the total tax for 
  2.15  the current tax year is $500 or less. 
  2.16     (e) (d) For health maintenance organizations, nonprofit 
  2.17  health services plan corporations, integrated service networks, 
  2.18  and community integrated service networks, the installments must 
  2.19  be based on an amount equal to one percent of premiums described 
  2.20  in paragraph (c) (b) that are paid after December 31, 1995. 
  2.21     (e) For insurance other than fire, lightning, sprinkler 
  2.22  leakage and extended coverage insurance and automobile insurance 
  2.23  written by town and farmers' mutual insurance companies and 
  2.24  mutual property and casualty insurance companies other than 
  2.25  those (i) writing life insurance, or (ii) whose total assets on 
  2.26  December 31, 1989, exceeded $1.6 billion, the installments must 
  2.27  be based on an amount equal to one-half of one percent of the 
  2.28  percentages of the premiums described in paragraph (b). 
  2.29     (f) Premiums under medical assistance, the MinnesotaCare 
  2.30  program, and the Minnesota comprehensive health insurance plan 
  2.31  are not subject to tax under this section. 
  2.32     Sec. 2.  Minnesota Statutes 1994, section 69.021, 
  2.33  subdivision 2, is amended to read: 
  2.34     Subd. 2.  [REPORT OF PREMIUMS.] Each insurer, including 
  2.35  township and farmers mutual insurers where applicable, shall 
  2.36  return to the commissioner with its annual financial statement 
  3.1   the reports described in subdivision 1 certified by its 
  3.2   secretary and president or chief financial officer.  The 
  3.3   Minnesota Firetown Premium Report shall contain a true and 
  3.4   accurate statement of the total premium for all gross direct 
  3.5   fire, lightning, sprinkler leakage, and extended coverage 
  3.6   insurance of all domestic mutual insurers and the total premiums 
  3.7   for all gross direct fire, lightning, sprinkler leakage and 
  3.8   extended coverage insurance of all other insurers, less return 
  3.9   premiums and dividends received by them on that business written 
  3.10  or done during the preceding calendar year upon property located 
  3.11  within the state or brought into the state for temporary use.  
  3.12  The fire and extended coverage portion of multiperil and 
  3.13  multiple peril package premiums and all other combination 
  3.14  premiums shall be determined by applying percentages determined 
  3.15  by the commissioner or by rating bureaus recognized by the 
  3.16  commissioner.  The Minnesota Aid to Police Premium Report shall 
  3.17  contain a true and accurate statement of the total premiums, 
  3.18  less return premiums and dividends, on all direct business 
  3.19  received by such insurer in this state, or by its agents for it, 
  3.20  in cash or otherwise, during the preceding calendar year, with 
  3.21  reference to insurance written for perils described in section 
  3.22  69.011, subdivision 1, clause (f), except that domestic mutual 
  3.23  insurance companies must not file a report. 
  3.24     Sec. 3.  [EFFECTIVE DATE.] 
  3.25     Sections 1 and 2 are effective retroactively to January 1, 
  3.26  1995.