Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2011
 

Tax on Insurers Law

Chapter 3. All Insurance Other Than Ocean Marine.

Article 5. Prepayments*

Section 12254

Text of section operative through June 30, 2011

12254. Amount of prepayment. (a) (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 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.

deletion(c) This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.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). Stats. 2010, Ch. 717 (SB 853), in effect October 19, 2010, deleted former subdivision (c) which provided that "This section shall remain in effect only until January 1, 2011, and as of that date is repealed." and added a new subdivision (c).

Text of section operative deletionJuly 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 deletionJuly 1, 2011.

History.—Added by Stats. 2009, Ch. 157 (AB 1422), in effect September 22, 2009, but operative January 1, 2011. Stats. 2010, Ch. 717 (SB 853), in effect October 19, 2010, substituted "July 1, 2011" for "January 1, 2011" after "operative on" in subdivision (c).

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