SF 1816

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxes; exempting premiums received from 
  1.3             the federal government for Medicare-related coverage 
  1.4             from the premium tax; amending Minnesota Statutes 
  1.5             1996, section 60A.15, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, 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 (d) and (e), 
  1.19  installments must be based on a sum equal to two percent of the 
  1.20  premiums described in paragraph (b). 
  1.21     (b) Installments under paragraph (a), (d), or (e) are 
  1.22  percentages of gross premiums less return premiums on all direct 
  1.23  business received by the insurer in this state, or by its agents 
  1.24  for it, in cash or otherwise, during such year. 
  1.25     (c) Failure of a company to make payments of at least 
  2.1   one-third of either (1) the total tax paid during the previous 
  2.2   calendar year or (2) 80 percent of the actual tax for the 
  2.3   current calendar year shall subject the company to the penalty 
  2.4   and interest provided in this section, unless the total tax for 
  2.5   the current tax year is $500 or less. 
  2.6      (d) For health maintenance organizations, nonprofit health 
  2.7   services plan corporations, integrated service networks, and 
  2.8   community integrated service networks, the installments must be 
  2.9   based on an amount equal to one percent of premiums described in 
  2.10  paragraph (b) that are paid after December 31, 1995. 
  2.11     (e) For purposes of computing installments for town and 
  2.12  farmers' mutual insurance companies and for mutual property 
  2.13  casualty companies with total assets on December 31, 1989, of 
  2.14  $1,600,000,000 or less, the following rates apply: 
  2.15     (1) for all life insurance, two percent; 
  2.16     (2) for town and farmers' mutual insurance companies and 
  2.17  for mutual property and casualty companies with total assets of 
  2.18  $5,000,000 or less, on all other coverages, one percent; and 
  2.19     (3) for mutual property and casualty companies with total 
  2.20  assets on December 31, 1989, of $1,600,000,000 or less, on all 
  2.21  other coverages, 1.26 percent. 
  2.22     (f) Premiums under medical assistance, general assistance 
  2.23  medical care, the MinnesotaCare program, and the Minnesota 
  2.24  comprehensive health insurance plan and all payments, revenues, 
  2.25  and reimbursements received from the federal government for 
  2.26  Medicare-related coverage as defined in section 62A.31, 
  2.27  subdivision 3, paragraph (l), are not subject to tax under this 
  2.28  section.