Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Tax on Insurers Law

Chapter 3. All Insurance Other Than Ocean Marine.

Article 1. General*

Section 12202

12202. Rate of tax. The rate of tax to be applied to the basis of the annual tax in respect to each year is 2.35 percent except the rate to be applied to the basis in respect to the years 1982, 1983, 1984, and 1985 is 2.33 percent and except that as to gross premiums received upon policies or contractsissued in connection with a pension plan or profit-sharing plan exempt or qualified under Section 401(a), 403(b), 404, 408(b), or 501(a) of the United States Internal Revenue Code as they may be amended or renumbered from time to time, the rate of tax shall be the percentage set forth below opposite each year:

Year

Percentage

1960

2.15

1961

1.95

1962

1.75

1963

1.55

1964

1.35

1965 through 1968

1.00

1969 and each year thereafter

0.50

History.—Stats. 1961, p. 1981, operative January 1, 1962, renumbered former Section 12256 as Section 12202 without other change. Stats. 1963, p. 5009 (Extra Session), in effect October 31, 1963, added the words "the rate to be applied to the basis in respect to the years 1964, 1965, 1966, and 1967 is 2.33 percent and." Stats. 1968, p. 2567, in effect November 13, 1968, added "403(b)". Stats. 1969, p. 2976, in effect November 10, 1969, added the provision for the 0.50% rate to the table. Stats. 1976, Ch. 534, operative August 22, 1976, added "408(b)". Stats. 1982, Ch. 327, in effect June 30, 1982, substituted "1982, 1983, 1984, and 1985" for "1964, 1965, 1966, and 1967" before "is 2.33".

Reduced rate.—The reduced rate of Revenue and Taxation Code section 12202 applies only to premiums satisfying both requirements of that section: 1) they must be from policies or contracts issued to pension or profit-sharing plans; and 2) those plans must be exempt or qualified under Internal Revenue Code section 401(a), 403(b), 404, 408(b) or 501(a). Transamerica Occidental Life Ins. Co. v. State Board of Equalization (1991) 232 Cal.App.3d 1048.

* The title of Article 1. Tax Base, commencing with former Section 12251 was amended to its present form by Stats. 1961, p. 1981, operative January 1, 1962.