Section 13210 Of Part 7.5. Nonadmitted Insurance Tax From California Revenue And Taxation Code >> Division 2. >> Part 7.5.
13210
. (a) For gross premiums paid or to be paid on insurance
contracts that take effect or are renewed on or after January 1,
1994, every California home state insured as defined by subdivision
(f) of Section 1760.1 of the Insurance Code, who effects insurance
governed by Chapter 6 (commencing with Section 1760) of Part 2 of
Division 1 of the Insurance Code shall pay a gross premium tax of 3
percent charged for the use of the state, less 3 percent of returned
premiums that were subject to the tax received by reason of
cancellation or reduction of premium.
(1) This section shall not apply to any of the following:
(A) Insurance coverage for which a tax on the gross premium is due
or has been paid pursuant to Section 1775.5 of the Insurance Code.
(B) Gross premiums paid and returned premiums received by that
California home state insured as defined by subdivision (f) of
Section 1760.1 of the Insurance Code, upon business governed by the
provisions of Section 1760.5 of the Insurance Code.
(C) Insurance coverage for which a tax on the gross premium is due
or has been paid pursuant to Section 132 of the Insurance Code.
(2) If during any calendar quarter 3 percent of the returned
premiums received that were subject to the tax imposed by this part
exceed 3 percent of the gross premiums paid or to be paid by that
person on contracts that took effect or were renewed in that calendar
quarter, then that person may either carry forward the excess to a
succeeding calendar quarter and apply it as a credit against the 3
percent of gross premiums paid or to be paid by that person in the
succeeding calendar quarter, or the person may elect to receive, and
be paid a refund equal to the amount of taxes paid by the person on
the excess of returned premiums received over gross premiums paid or
to be paid.
(b) For purposes of determining the tax, the total gross premium
paid or to be paid for all nonadmitted insurance placed in a single
transaction with one underwriter or group of underwriters, whether in
one or more policies, in that calendar quarter during which the
taxable insurance contract or contracts took effect or were renewed,
shall be the entire gross premium charged on all nonadmitted
insurance for the California home state insured as defined by
subdivision (f) of Section 1760.1 of the Insurance Code.
(c) Subdivision (b) shall not apply to interstate motor transit
operations conducted between this and other states. With respect to
those operations, the tax shall be payable on the entire premium
charged on all nonadmitted insurance, less any of the following:
(1) The portion of the premium that is determined to have been
charged for operations in other states that have taxed the premium on
operations in states of an insured maintaining its headquarters
office in this state.
(2) The premium for any operations outside of this state of an
insured who maintains a headquarters operating office outside of this
state and a branch office in this state.