SF 896

as introduced - 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, section 60A.15, subdivision 1.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 60A.15, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [DOMESTIC AND FOREIGN COMPANIES.] (a) On or 
  1.9   before April 1, June 1, and December 1 of each year, every 
  1.10  domestic and foreign company, including town and farmers' mutual 
  1.11  insurance companies, domestic mutual insurance companies, marine 
  1.12  insurance companies, health maintenance organizations, 
  1.13  integrated service networks, community integrated service 
  1.14  networks, and nonprofit health service plan corporations, shall 
  1.15  pay to the commissioner of revenue installments equal to 
  1.16  one-third of the insurer's total estimated tax for the current 
  1.17  year.  Except as provided in paragraphs (b) and (e), 
  1.18  installments must be based on a sum equal to two percent of the 
  1.19  premiums described in paragraph (c). 
  1.20     (b) For town and farmers' mutual insurance companies and 
  1.21  mutual property and casualty insurance companies other than 
  1.22  those (i) writing life insurance, or (ii) whose total assets on 
  1.23  December 31, 1989, exceeded $1,600,000,000, the installments 
  1.24  must be based on an amount equal to the following percentages of 
  1.25  the premiums described in paragraph (c): 
  2.1      (1) for gross direct fire, lightning, and sprinkler 
  2.2   leakage, and extended coverage premiums paid after December 31, 
  2.3   1988, and before January 1, 1992, one two percent; and 
  2.4      (2) for all other premiums paid after December 31, 1991, 
  2.5   one-half of one percent. 
  2.6      (c) Installments under paragraph (a), (b), 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) 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) For health maintenance organizations, nonprofit health 
  2.17  services plan corporations, integrated service networks, and 
  2.18  community integrated service networks, the installments must be 
  2.19  based on an amount equal to one percent of premiums described in 
  2.20  paragraph (c) that are paid after December 31, 1995. 
  2.21     (f) Premiums under medical assistance, the MinnesotaCare 
  2.22  program, and the Minnesota comprehensive health insurance plan 
  2.23  are not subject to tax under this section. 
  2.24     Sec. 2.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective January 1, 1995.