SECTIONS 12101-12107 - California Statutes

REVENUE AND TAXATION CODE

SECTION 12101-12107

12101. Every insurer transacting the business of ocean marine
insurance in this State shall annually pay to the State a tax
measured by that portion of the underwriting profit of the insurer
from ocean marine insurance written in the United States, which the
gross premiums of the insurer from ocean marine insurance written in
this State bear to the gross premiums of the insurer from ocean
marine insurance written within the United States, at the rate of 5
per cent.

12102. The tax is in lieu of all other state, county and municipal
taxes and licenses upon the marine insurer, except taxes upon real
estate, any retaliatory exactions imposed by paragraph (3) of
subdivision (f) of Section 28 of Article XIII of the Constitution,
motor vehicle and other vehicle registration license fees and any
other tax or license fee imposed by the state upon vehicles, motor
vehicles or the operation thereof, and taxes assessed or levied
against the insurer on account of any other class of insurance
written by it.

12103. Except as otherwise provided in Section 12105, the tax shall
be computed each year upon the average annual underwriting profit of
the insurer from ocean marine insurance during the preceding three
calendar years.

12104. If the insurer has transacted ocean marine insurance in this
State in each of the three calendar years immediately preceding the
year in which a tax return is required to be filed, the tax shall be
computed as follows:
(a) Divide the average annual premiums of the insurer from ocean
marine insurance written by it in this State during the preceding
three calendar years by the average annual premiums of the insurer
from all ocean marine insurance written in the United States during
such calendar years.
(b) Multiply the insurer's average annual underwriting profit from
ocean marine insurance written within the United States during the
preceding three calendar years by the figure derived in (a).
(c) Multiply the amount derived in (b) by 5 percent.

12105. If the insurer has not transacted ocean marine insurance in
this State in each of the three calendar years immediately preceding
the year in which a tax return is required to be filed, its tax shall
be computed on the basis of its premiums and underwriting profits in
the last completed calendar year. As soon as the insurer comes
within the terms of Section 12104, the taxes computed under the
provisions of this section for the two preceding calendar years shall
be adjusted to equal the amount of the first tax computed under
Section 12104. The adjustment shall be shown as an addition to, or a
credit against, the tax computed upon business done in the third
calendar year or as soon thereafter as possible.

12106. In computing the tax of a marine insurer issuing
participating policies, there shall not be included in underwriting
profit the amounts refunded by the insurer on account of premiums
previously paid by its policyholders.

12107. Whenever in this part the date, April 1st, is used as the
beginning date for the computation of interest, attachment of
penalties, or the fixing of periods of limitation, the date, June
15th, shall be substituted in lieu thereof with respect to taxes for
ocean marine insurance.