1998 Minnesota Statutes

     299F.21 Fire insurance company pays tax. 

    Subdivision 1.    Estimated installment payments.  On or 
 before April 1, June 1, and December 1 of each year, every 
 licensed insurance company, including reciprocals or 
 interinsurance exchanges, doing business in the state, excepting 
 farmers' mutual fire insurance companies and township mutual 
 fire insurance companies, shall pay to the commissioner of 
 revenue installments equal to one-third of, a tax upon its fire 
 premiums or assessments or both, based on a sum equal to 
 one-half of one percent of the estimated fire premiums and 
 assessments, less return premiums and dividends, on all direct 
 business received by it in this state, or by its agents for it, 
 in cash or otherwise, during the year, including premiums on 
 policies covering fire risks only on automobiles, whether 
 written under floater form or otherwise.  In the case of a 
 mutual company or reciprocal exchange the dividends or savings 
 paid or credited to members in this state shall be construed to 
 be return premiums.  The money so received into the state 
 treasury shall be credited to the general fund.  A company that 
 fails to make payments of at least one-third of either (1) the 
 total tax paid during the previous calendar year or (2) 80 
 percent of the actual tax for the current calendar year is 
 subject to the penalty and interest provided in this chapter, 
 unless the total tax for the current tax year is $500 or less.  

    Subd. 1a.    Electronic funds transfer payment.  If the 
 aggregate amount of fire marshal tax payments under this section 
 and the premium tax payments under section 60A.15 made during a 
 calendar year is equal to or exceeds $120,000, all tax payments 
 in the subsequent calendar year must be paid by means of a funds 
 transfer as defined in section 336.4A-104, paragraph (a).  The 
 funds transfer payment date, as defined in section 336.4A-401, 
 must be on or before the date the payment is due.  If the date 
 the payment is due is not a funds transfer business day, as 
 defined in section 336.4A-105, paragraph (a), clause (4), the 
 payment date must be on or before the funds transfer business 
 day next following the date the payment is due. 

    Subd. 1b.    Addition to tax.  In case of an 
 underpayment of installments by an insurer, there must be added 
 to the tax for the taxable year an amount determined at the rate 
 specified in section 270.75 upon the amount of underpayment. 

    Subd. 1c.    Amount of underpayment.  For purposes of 
 subdivision 1a, the amount of the underpayment is the excess 
 of:  (1) the amount of the installment; over (2) the amount, if 
 any, of the installment paid on or before the last date 
 prescribed for payment. 

    Subd. 1d.    Period of underpayment.  The period of the 
 underpayment runs from the date the installment was required to 
 be paid to the earliest of the following dates: 

    (1) on March 1 following the close of the taxable year; 

    (2) with respect to any portion of the underpayment, the 
 date on which that portion is paid.  For purposes of this 
 clause, a payment of estimated tax on any installment date is 
 considered a payment of any previous underpayment only to the 
 extent the payment exceeds the amount of the installment 
 determined under clause (1), for the installment date. 

    Subd. 1e.    Definition of tax.  The term "tax" means 
 the tax imposed by this chapter. 

    Subd. 1f.    Failure to file estimate.  In the case of 
 an insurer that fails to file an estimated tax statement for a 
 taxable year when one is required, the period of the 
 underpayment runs from the installment dates as set forth in 
 subdivision 1 to whichever of the periods set forth in 
 subdivision 1d is the earlier. 

    Subd. 2.    Annual return.  (a) Every insurer required 
 to pay a tax under this section shall make and file a statement 
 of estimated taxes for the period covered by the installment tax 
 payment.  The statement shall be in the form prescribed by the 
 commissioner of revenue.  

    (b) On or before March 1, annually every insurer subject to 
 taxation under this section shall make an annual return for the 
 preceding calendar year setting forth information the 
 commissioner of revenue may reasonably require on forms 
 prescribed by the commissioner.  

    (c) On March 1, the insurer shall pay any additional amount 
 due for the preceding calendar year; if there has been an 
 overpayment, the overpayment may be credited without interest on 
 the estimated tax due April 1.  

    (d) If unpaid by this date, penalties as provided in 
 section 289A.60, subdivision 1, as related to withholding and 
 sales or use taxes, shall be imposed. 

    HIST: (5973) 1913 c 564 s 23; 1915 c 341 s 1; 1937 c 77 s 1; 
 1949 c 315 s 1; 1963 c 88 s 6; 1981 c 106 s 6; 1984 c 592 s 83; 
 1Sp1986 c 1 art 7 s 35; 1987 c 268 art 2 s 30-36; 1990 c 480 art 
 1 s 46; art 6 s 7; 1992 c 511 art 6 s 17; 1993 c 375 art 10 s 
 43; 1997 c 31 art 2 s 51; 1997 c 84 art 6 s 27