Section 4-209 - Premium receipts tax - Unauthorized insurers.
§ 4-209. Premium receipts tax - Unauthorized insurers.
(a) Scope of section.- This section does not apply to:
(1) premiums on lawfully procured surplus lines insurance;
(2) premiums on independently procured insurance on which a tax has been paid under § 4-211 of this subtitle; or
(3) wet marine and transportation insurance.
(b) Amount of tax.-
(1) If an unauthorized insurer effects, continues, or renews insurance on a subject resident, located, or to be performed in the State, the unauthorized insurer shall pay to the Commissioner, before March 1 of the next calendar year, a premium receipts tax of 3% of gross premiums charged for the insurance.
(2) Insurance that an unauthorized insurer effects, continues, or renews on a subject resident, located, or to be performed in the State that is procured through negotiations or an application wholly or partly occurring or made in or from within or outside of the State, or for which premiums wholly or partly are remitted directly or indirectly from in or outside of the State, is deemed to be insurance procured, continued, or renewed in the State.
(c) Other State taxes.- The premium receipts tax under this section is instead of all other State taxes.
(d) Insured to pay tax on default.- If an unauthorized insurer defaults on the payment of the tax under this section, the insured shall pay the tax.
(e) Penalty for late payment.- If the tax is not timely paid under subsection (b) of this section, the amount of the tax due shall be increased by a penalty of:
(1) 25% of the tax due; and
(2) an amount computed at the rate of 1% per month or any part of a month after the date the payment was due to the date the payment is made.
(f) Proration of tax.-
(1) If a policy covers a risk or exposure that is partly in the State, the tax payable shall be computed on the part of the premium that is properly allocable to the risk or exposure located in the State.
(2) Except for premiums that are properly allocated or apportioned and reported as taxable premiums of another state, in determining the amount of premiums taxable in this State, all premiums written, procured, or received in this State and all premiums on policies negotiated in this State shall be deemed written on property or risks located or resident in this State.
[An. Code 1957, art. 48A, § 208; 1995, ch. 36.]