Retaliatory Information: Schedule of Fees, Taxes and Charges

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Fees

for filing charter: $30 [Insurance Law § 9107] (foreign and domestic)
for filing amendment to charter: $10 [Insurance Law § 9107] (domestic)
for initial issuance of license: $10 [Insurance Law § 9107] (foreign and domestic)
for annual renewal of license: none (foreign)
for certificate of compliance, certificate of valuation, or certificate of deposit: $5 each [Insurance Law § 9107] (foreign and domestic)
for processing of name: $25 [11 NYCRR] foreign and domestic

Taxes and Charges

Organization Tax: All domestic stock insurers pay to the Superintendent of Insurance a tax of 1/20th of 1% on the amount of par value of all shares. [Tax Law § 180]

Franchise Tax: Payable to the State Department of Taxation and Finance within two and one half months of the close of the reporting period [Tax Law, Article 33]

Every domestic, foreign or alien insurance corporation, for the privilege of exercising its corporate franchise and doing business in this State, is required to pay a franchise tax computed in accordance with the provisions of Article 33 of the New York State Tax Law as follows:

Life Insurance Corporations
The franchise taxes for life insurance corporations are computed on four bases: 1) an allocated entire net income base, 2) allocated business and investment capital base, 3) allocated net income plus compensation alternative base, and 4) minimum $250 tax base. Added to the highest base is a tax on allocated subsidiary capital. Added to this sum is the tax on gross direct premiums, less return premiums and dividends paid to policyholders, on risks located or resident within the state. Taxable premiums include all amounts received as consideration for insurance contracts or reinsurance contracts, and include premium deposits, assessments, policy fees, membership fees and every other compensation for such contracts. The tax rate on life premiums is .7%. The tax liability as computed may not be less than 1.5% or more than 2% of taxable premiums. Life insurance corporations file Form CT-33, Life Insurance Corporation Franchise Tax Return, which can be accessed, along with instructions (Form CT-33-I), on the New York State Department of Finance and Taxation website at: http://www.tax.state.ny.us/forms/corp_ins_forms.htm.

Nonlife Insurance Corporations
The franchise tax for nonlife insurance corporations is based solely on gross direct premiums, less return premiums and dividends paid to policyholders, on risks located or resident within the state. Taxable premiums include all amounts received as consideration for insurance contracts or reinsurance contracts, and include premium deposits, assessments, policy fees, membership fees and every other compensation for such contracts. The tax rate is 1.75% for accident and health premiums and 2.00% for all other nonlife premiums. The minimum tax is $250. Nonlife insurance corporations file Form CT-33-NL, Non-Life Insurance Corporation Franchise Tax Return, which can be accessed, along with instructions (Form CT-33-NL-I), on the New York State Department of Finance and Taxation website at: http://www.tax.state.ny.us/forms/corp_ins_forms.htm

A tax credit of 90% of the retaliatory taxes paid other states by domestic insurers is allowed; but this credit may not exceed the amount of the tax under Article 33 and must be claimed in the year it is paid. To claim the credit, insurance companies must file Form CT-33-R, Claim for Retaliatory Tax Credits, which can be accessed on the New York State Department of Finance and Taxation website at: http://www.tax.state.ny.us/forms/corp_ins_forms.htm.

Temporary MTA Surcharge: Payable to the State Department of Taxation and Finance [Tax Law, Article 33]

Every domestic, foreign or alien insurance corporation taxable under Article 33 that does business, employs capital, owns or leases property, or maintains an office in the Metropolitan Commuter Transportation District (includes the counties of New York, Bronx, Queens, Kings, Richmond, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester), shall annually pay a tax surcharge on taxes imposed under Article 33 after the deduction of any credits otherwise allowable under Article 33 as allocated to such district. This provision is applicable for taxable years commencing on or after January 1, 1982 and ending before December 31, 2009. [Tax Law §1505-a] Insurance corporations file Form CT-33-M, Insurance Corporation MTA Surcharge Return, which can be accessed, along with the instructions (Form CT-33-M-I), on the New York State Department of Taxation and Finance website at:
http://www.tax.state.ny.us/forms/corp_ins_forms.htm.

Estimated Tax: Payable to the New York State Department of Taxation and Finance [Tax Law, Article 33; Tax Law §§ 1513 and 1514; TSB-M-03(9)C; Form CT-33, Life Insurance Corporation Franchise Tax Return;and Form CT-33-NL, Non-Life Insurance Corporation Franchise Tax Return]

Fire Insurance Premium Tax: [Insurance Law §§ 9104 and 9105]

§§ 9104 and 9105 of the Insurance Law govern the fire insurance premium tax payable by foreign and alien insurers to the Superintendent of Insurance. A fire department code/street listing is available on the Insurance Department’s website for use in connection with this tax. A credit for this tax is allowed against the tax imposed under Article 33 of the Tax Law.

Retaliatory Taxes and Fees: Payable to the Superintendent of Insurance [Insurance Law §1112]

Under § 1112 of the Insurance Law, insurers domiciled in states wherein New York insurers are charged in the aggregate taxes and fees greater or allowed credits less than the above, are required to pay to the Superintendent of Insurance a charge equal to that imposed on New York insurers by laws of such other state. In assessing taxes under this section credit is allowed for any franchise taxes paid pursuant to Article 33 of the Tax Law, and any amounts paid to the security funds.

Fire Insurance Fee: Payable to the Superintendent of Insurance [Insurance Law §9108]

Payable quarterly on April 15, July 15, October 1 and January 15 at the rate of 1¼ % on gross direct written premiums less premiums on policies not taken, returned premiums on cancelled policies. No fee is imposed for inland marine, ocean marine, automobile or aircraft physical damage insurance policies.

Security Funds: Funds are maintained to pay claims by all New York State residents against insolvent insurance companies as follows:

Workers’ Compensation Security Fund [Workers’ Compensation Law, Article 6A]: Payable quarterly to the Superintendent of Insurance on May 15, August 15, November 15, and February 15 at the rate of 1% on direct written premiums less premiums (mutual companies may also deduct dividends) for policies issued to insure payment of compensation pursuant to the Workers’ Compensation Law of New York State.

Public Motor Vehicle Liability Security Fund [Insurance Law § 7601]: Payable quarterly to the Superintendent of Insurance on May 15, August 15, November 15 and February 15 at the rate of 3% on direct premiums written less dividends. Section 370 of the New York State Vehicle and Traffic Law (Indemnity Bonds or Insurance Policies on Vehicles Transporting Passengers for Hire).

Property/Casualty Insurance Security Fund [Insurance Law § 7603]: Payable quarterly to the Superintendent of Insurance on May 15, August 15, November 15 and February 15 at various rates on direct written premiums less return premiums and less dividends on property/casualty lines of insurance.

Life Insurance Company Guaranty Corporation [Insurance Law § 7709]: Payable to the Life Insurance Company Guaranty Corporation. Assessments on foreign and domestic life insurers.

Revised 04/18/2008