Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2010
 

Tax on Insurers Law

Chapter 3. All Insurance Other Than Ocean Marine.

Article 5. Prepayments*

Section 12254

12254. Amount of prepayment. (a) deletion(1) For each insurer, the amount of each prepayment shall be 25 percent of the amount of the annual insurance tax liability reported on the return of the insurer for the preceding calendar year.

(2) For each Medi-Cal managed care plan, the amount of each prepayment shall be 25 percent of the amount of tax the plan estimates as the amount of tax imposed by Section 12201 with respect to the plan.

(b) In establishing the prepayment amount of an insurer deletionthat has acquired the business of another insurer, the amount of tax liability of the acquiring insurer reported for the preceding calendar year shall be deemed to include the amount of tax liability of the acquired insurer reported for that year.

(c) This section shall remain in effect only until January 1, 2011, and as of that date is repealed.

History.—Stats. 1978, Ch. 827, effective January 1, 1979, deleted ", less any deduction for real estate taxes taken thereon in accordance with Section 12241" following "calendar year" in (a). Stats. 1982, Ch. 327, in effect June 30, 1982, operative October 1, 1982, substituted "25" for "264/5" before "percent" in subdivision (a). Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, substituted "(a)(1)" for "(a)", added "For each insurer" before "the amount of each prepayment", substituted "the" for "The" before "amount of each prepayment", added "the" before "annual insurance tax", and added paragraph (2) in subdivision (a); substituted "that" for "who" after "amount of an insurer" in subdivision (b), and added subdivision (c).

Text of section operative January 1, 2011

12254. Amount of prepayment. (a) The amount of each prepayment shall be 25 percent of the amount of the annual insurance tax liability reported on the return of the insurer for the preceding calendar year.

(b) In establishing the prepayment amount of an insurer that has acquired the business of another insurer, the amount of tax liability of the acquiring insurer reported for the preceding calendar year shall be deemed to include the amount of tax liability of the acquired insurer reported for that year.

(c) This section shall become operative on January 1, 2011.

History.—Added by Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, but operative January 1, 2011.

* Article 5 was added by Stats. 1969, p. 1473, in effect August 14, 1969, operative January 1, 1970.