* § 9111-a. Temporary franchise tax on certain insurance companies.
(a) Imposition. (1) For the privilege of conducting business in this
state and in addition to any other requirements therefor, every
insurance company subject to the franchise tax imposed by subdivision
(a) of section fifteen hundred ten of the tax law, other than insurance
companies whose premiums are received solely as consideration for
accident and health insurance policies, shall pay a franchise tax of two
percent of all gross direct premiums, less return premiums thereon,
written during the "event year", as such term is defined in the
following sentence, on risks located or residing in this state. For the
purposes of this section, "event year" shall mean (A) the calendar year
preceding the February fifth on which the budget director fails to
provide a certification to the superintendent that the transfers to the
general fund that have been authorized by section five thousand five
hundred sixteen-e of this chapter have been made or (B) the calendar
year preceding the year in which a final judicial determination
invalidating some or all of the provisions of such section five thousand
five hundred sixteen-e requires a return from the general fund of any or
all of the amounts transferred to such fund pursuant to such section
five thousand five hundred sixteen-e.

(2) Determination of direct premiums-general provisions. (A) The term
"premium" includes all amounts received as consideration for insurance
contracts or reinsurance contracts, other than for annuity contracts,
and shall include premium deposits, assessments, policy fees, membership
fees, and every other compensation for such contract. In ascertaining
the amount of direct premiums upon which a tax is payable under this
section there shall be first determined the amount of total gross
premiums or deposit premiums or assessments, less return thereon, on all
policies, certificates, renewals, policies subsequently cancelled,
insurance and reinsurance executed, issued or delivered on property or
risks located or resident in this state, including premiums for
reinsurance assumed, and also including premiums written, procured or
received in this state on business which cannot specifically be
allocated or apportioned and reported as taxable premiums or which have
been used as a measure of a tax on business of any other state or
states. Provided, however, in the case of special risk premiums, direct
premiums shall include only those premiums written, procured or received
in this state on property or risks located or resident in this state.
The reporting of premiums for the purpose of the tax imposed by this
section shall be on a written basis or on a paid-for basis consistent
with the basis required by the annual statement filed with the
superintendent of financial services pursuant to section three hundred
seven of this chapter.

(B) The term "gross direct premiums," as used in this section, shall
not include premiums for policies issued pursuant to section four
thousand two hundred thirty-six of this chapter and premiums for
insurance upon hulls, freights, or disbursements, or upon goods, wares,
merchandise and all other personal property and interests therein, in
the course of exportation from, importation into any county, or
transportation coastwide, including transportation by land or water from
point of origin to final destination in respect to, appertaining to, or
in connection with, any and all risks or perils of navigation, transit
or transportation, and while being prepared for, and while awaiting
shipment and during any delays, storage, transshipment or reshipment
incident thereto, including war risks and marine builder's risks.

(C) After determining the amount of total gross premiums, less returns
thereon, as hereinbefore provided, there shall be deducted the following
items:

(i) Such premiums, less return premiums thereon, which have been
received by way of reinsurance from corporations or other insurers
authorized to transact business in this state;

(ii) Dividends on such direct business, including unused or unabsorbed
portions of premium deposits paid or credited to policyholders, but not
including deferred dividends paid in cash to policyholders on maturing
policies, nor cash surrender values.

(D) In determining the amount of direct premiums taxable in this
state, all such premiums written, procured or received in this state
shall be deemed written on property or risks located or resident in this
state except such premiums as are properly allocated or apportioned and
reported as taxable premiums or which have been used as a measure of a
tax of any other state or states, provided, however, in the case of
special risk premiums, direct premiums shall include only those premiums
written, procured or received in this state on property or risks located
or resident in this state.

(b) Payment. Taxes due under this section shall be paid to the
superintendent in such manner as the superintendent shall prescribe. The
tax shall be paid in two installments. The first installment shall be
due within thirty days of the time at which the superintendent
determines such tax is to be paid and shall be no less than ninety
percent of the tax ultimately determined to be due under this section.
The balance of any tax due shall be paid on the next succeeding March
twenty-fifth.

(c) Returns and reports. A return, in a form prescribed by the
superintendent, shall accompany the tax payment due March twenty-fifth.
In addition, the superintendent may prescribe a return to accompany the
first installment.

(d) Interest and penalties. (1) Interest. If any amount of tax is not
paid on or before the date prescribed for payment thereof in paragraph
two of this subsection, interest on such amount of tax at the
underpayment rate set by the commissioner of taxation and finance
pursuant to section one thousand ninety-six of the tax law, plus one
percentage point, shall be paid to the superintendent for the period
from the date prescribed for payment until the date paid.

(2) Underpayment penalty. If the amount of tax paid by March
twenty-fifth is less than ninety-five percent of the tax ultimately
determined to be due pursuant to this section, a penalty is hereby
imposed equal to one hundred percent of the difference between the
amount of tax actually paid and ninety-five percent of the tax
ultimately determined to be due. In addition, this penalty shall bear
interest at the rate set forth in paragraph one of this subsection for
the period from the due date until the date the penalty is paid.

(e) Coordination with other laws. Notwithstanding the provisions of
section one thousand one hundred twelve of this chapter, taxes paid
pursuant to this section shall not be considered in the calculation of
reciprocal taxes due this state pursuant to section one thousand one
hundred twelve of this chapter. Notwithstanding the provisions of
subdivision (c) of section fifteen hundred eleven of the tax law, taxes
paid to other states on account of the imposition of the tax imposed by
this section shall not be included in the calculation of the tax credit
provided for by subdivision (c) of section fifteen hundred eleven of the
tax law.

* NB Section null and void if schedule is submitted as provided for in
§ 5516-e of the insurance law.