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gas by a gas company, should be deducted before computing the tax; that, otherwise, the tax would be on gross receipts and not on gross earnings. The present statute obviates the necessity of any such distinction.

CHAPTER VIII.

ANNUAL Tax on INSURANCE COMPANIES, BASED ON GROSS

PREMIUMS.

Premiums received on business done in the state defined.The tax is computed on the basis of premiums received on business done at any time in the state and is for the privilege enjoyed and not on the property in the state in the case of a foreign fire insurance company. People ex rel. Conn. Mutual Life Ins. Co. v. Kelsey, 116 App. Div. 97 (1906), aff’d 188 N. Y. 541.

Franchise tax on insurance corporations.-An annual state tax for the privilege of exercising corporate franchises or for carrying on business in their corporate or organized capacity within this state equal to one per centum on the excess of the gross amount of premiums charged, over the deductions hereinafter provided, during the preceding calendar year for business done at any time in this state, shall be paid annually into the treasury of the state on or before the first day of June. The gross amount of premiums subject to deduction shall include all premiums charged during such preceding calendar year on all policies, certificates, renewals, policies subsequently cancelled, insurance and reinsurance executed, issued or delivered during such preceding and all prior calendar years. The excess of the gro88 amount of premiums taxable shall be found by deducting from the total amount of premiums charged, including reinsurance premiums charged, for business done in this state under all such policies, certificates, renewals, policies subsequently cancelled, insurance and reinsurance executed, issued or delivered during such preceding and all prior calendar years, the amount of premiums paid for reinsurance in corporations taxed under this section, unearned premiums returned on cancellation of policies, premiums on policies not taken and all the so-called dividends made to policy holders, but not including deferred dividends paid in cash to policy holders on maturing policies; provided, however, that in the case of life insurance companies the word "chargedwherever it appears shall bo understood to mean the amount of premiums received. Such taw shall be paid by the con poration which charges the premium provided it is one of the corporations hereinafter described:

1. Every domestic insurance corporation, incorporated, organized or formed under, by, or pursuant to a general or special law;

2. Every insurance corporation, incorporated, organized or formed under, by, or pursuant to the laws of any other state of the United States, and doing business in this state, except a corporation doing a fire insurance business or a marine insurance business;

3. Every insurance corporation, incorporated, organized or formed under, by, or pursuant to the laws of any state without the United States, or of any foreign country, except such a corporation doing a life, health or casualty insurance business, and doing business in this state; but the tax on gross premiums of a corporation so incorporated, organized or formed and doing a fire or marine insurance business within the state shall be equal to five-tenths of one per centum. This section does not apply to a fraternal beneficiary society, order or association, a corporation for the insurance of domestic animals, a town or county co-operative insurance corporation, nor to any corporation subject to the supervision of or required by or in pursuance of law to report to the superintendent of banks; but this section does apply to an individual, or partnership, or association of underwriters known as Lloyds in so far as corporations doing the same kind of insurance business are subject to its provisions. The taxes imposed by this section shall be in addition to all other fees, licenses or taxes imposed by this or any other law, except that in assessing taxes under the reciprocal provision of section thirty-three of the insurance law, credit shall be allowed for any taxes paid under this section. The term "insurance corporations” as used in this article shall include a corporation, association, joint-stock company or association, person, society, aggregation or partnership by whatever name known doing an insurance business in this state. (Present and former sec. 187, Tax Law, as amended by ch. 494, L. 1897, ch. 118, L. 1901, ch. 94, L 1905, ch. 796, L. 1917, and ch. 625, L. 1919.)

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Source: Sec. 5, ch. 361, L. 1881, as amended by ch. 425, L. 1895; sec. 1, ch. 679, L. 1886, as amended by ch. 418, L. 1895.

Recent Amendment.--The amendment of 1919 provides the method for finding the excess of the gross amount of premiums taxable.

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No deductions for the two per cent. annual tax payable to superintendent of insurance.—Under subdivision 2, section 187, as amended by Chapter 118, Laws of 1901, the tax imposed is in addition to all other fees, licenses and taxes, and a foreign marine ingurance company cannot deduct the annual tax of two per cent. payable to the superintendent of insurance under section 34, Insurance Law. People v. Thames & Mersey Marine Ins. Co., 176 N. Y. 531 (1903). Section 34 reads as follows:

Taxation of foreign corporations.—“The capital of an insurance corporation incorporated under the laws of any state or country outside of the United States, to the extent employed in the transaction of business in this state, and as determined and certified as prescribed by section twenty-seven of this chapter, shall be subject to taxation the same as the capital of a like domestic insurance corporation, to be levied, assessed and collected, as prescribed by law, at such place in the state as it shall have its principal office. Upon satisfactory proof to the superintendent of insurance that any foreign insurance corporation has neglected or refused to pay any tax levied and assessed under the laws of this state, he shall revoke any certificate of authority granted by him to such corporation to do business in this state, and it shall thereafter be precluded from doing business herein. Every health, or casualty insurance corporation incorporated by or organized under the laws of any government outside of the United States engaged in the transaction of the business of health or casualty insurance in this state, under a certificate of authority from the superintendent of insurance shall annually on or before the first day of March, pay to the superintendent of insurance a tax of two per centum on all premiums received in cash or otherwise by its attorneys or agents in this state during the year ending on the preceding thirty-first day of December for business done at any time in this state on risks resident therein. Every life insurance corporation incorporated by or ganized under the laws of any government outside of the United States engaged in the transaction of the business of life insurance in this state, under a certificate of authority from the superintendent of insurance shall annually, on or before the first day of March, pay to the superintendent of insurance a tax of one per centum on all premiums received in cash or otherwise by its attorneys or agents in this state during the year ending on the preceding thirty-first day of December, for business done at any time in this state on risks resident therein. If any such corporation shall neglect or refuse to pay such tax, the superintendent shall collect the same out of the interest on the

or

stocks or securities deposited in the insurance department. The agent of every corporation, association or individual not incorporated by the laws of this state to effect insurance against marine risks shall annually, on or before the first day of February, pay to the superintendent of insurance a tax of two per centum upon the amount of all premiums upon insurance against marine risks which have been received by such agent or any person for him or have been agreed to be paid for any such insurance effected or agreed to be effected or procured by him, within this state, for the year ending the thirty-first day of December preceding. In ascertaining the amount of premiums upon which said two per centum tax is to be levied, there shall be deducted from the premiums aforesaid, on account of reinsurances, Buch portion of the premiums upon said reinsurances as may have been paid to companies that are subject to the payment of the tax hereby provided for, but no credit or deduction shall be allowed on account of such reinsurances where any part of the risk insured against is reingured in a corporation authorized to effect insurances against fire, or in the fire insurance branch of a corporation authorized to effect insurance against both marine and fire risks.” (Former sec. 34, Ins. Lowo, as amended by ch. 725, L. 1893, ch. 708, L. 1904, ch. 634, L. 1910, and ch. 786, L. 1911.) Amendment of 1905.—Chapter 94 of the Laws of 1905 amended section 187 of the Tax Law and materially changed the method of computing the tax on insurance companies. Prior to the passage of this law it had been held that a tax of one per cent., imposed under section 187 of the Tax Law, on the gross premiums of domestic insurance companies applied only to first year premiums on new policies and not to renewal policies. People ex rel. Provident 8. L. A. Society v. Miller, 179 N. Y. 227 (1904); reversing 88 App. Div. 218, Vann and Bartlett, JJ., dissenting. By the amendment of 1905 a tax was imposed not only on premiums collected on new policies but also on the gross amount of premiums received during the preceding calendar year on all policies, all renewal premiums, insurance and re-insurance executed, issued and delivered in all years prior to such preceding calendar year. See also People ex rel. Conn. Mutual Life Ins. Co. v. Kelsey, 116 App. Div. 97 (1906).

A somewhat different question was raised in People ex rel. Continental Insurance Co. v. Miller, 177 N. Y. 515 (1904), in which

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