Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
135.0000 BANKS AND INSURANCE COMPANIES—Regulation 1567
135.0271 Nonprofit Hospital Service Corporation. Even though a hospital is licensed by the Department of Insurance as a nonprofit hospital service corporation pursuant to Division 2, Part 1, Chapter 11A of the Insurance Code (Insurance § 11491 et seq.), it is not an insurer within the meaning of California Constitution Article XIII, section 28, and it is not required to pay gross premium tax on insurers. Under Chapter 11A, nonprofit hospital service corporations are declared to be charitable and benevolent institutions rather than insurers. Accordingly, such hospital is not exempt from use tax as an insurer. 9/11/87.