SECTIONS 12251-12260 - California Statutes

REVENUE AND TAXATION CODE

SECTION 12251-12260

12251. (a) For the calendar year 1970, and each calendar year
thereafter, insurers transacting insurance in this state and whose
annual tax for the preceding calendar year was five thousand dollars
($5,000) or more shall make prepayments of the annual tax for the
current calendar year imposed by Section 28 of Article XIII of the
California Constitution and this part, provided that no prepayments
shall be made with respect to the tax on ocean marine insurance
underwriting profit or any retaliatory tax.
(b) Medi-Cal managed care plans shall make prepayments of the tax
imposed by Section 12201 for the current calendar year, except that
no prepayments shall be required prior to the effective date of the
act adding this subdivision, and no penalties and interest shall be
imposed pursuant to Section 12261 for not making those prepayments.
(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of January 1, 2012, is repealed, unless a later enacted statute,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extends the dates on which it becomes inoperative and is repealed.

12251. (a) For the calendar year 1970, and each calendar year
thereafter, insurers transacting insurance in this state and whose
annual tax for the preceding calendar year was five thousand dollars
($5,000) or more shall make prepayments of the annual tax for the
current calendar year imposed by Section 28 of Article XIII of the
California Constitution and this part, provided that no prepayments
shall be made with respect to the tax on ocean marine insurance
underwriting profit or any retaliatory tax.
(b) This section shall become operative on July 1, 2011.

12253. (a) Each insurer and Medi-Cal managed care plan required to
make prepayments shall remit them on or before each of the dates of
April 1st, June 1st, September 1st, and December 1st of the current
calendar year. Remittances for prepayments shall be made payable to
the Controller and shall be delivered to the office of the
commissioner, accompanied by a prepayment form prescribed by the
commissioner.
(b) 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of January 1, 2012, is repealed, unless a later enacted statute,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extends the dates on which it becomes inoperative and is repealed.

12253. (a) Each insurer required to make prepayments shall remit
them on or before each of the dates of April 1st, June 1st, September
1st, and December 1st of the current calendar year. Remittances for
prepayments shall be made payable to the Controller and shall be
delivered to the office of the commissioner, accompanied by a
prepayment form prescribed by the commissioner.
(b) This section shall become operative on July 1, 2011.

12254. (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.
(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.

12254. (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 July 1, 2011.

12255. The commissioner, for good cause shown, may extend for not
to exceed 10 days the time for making a prepayment. The extension may
be granted at any time, provided that a request therefor is filed
with the commissioner within or prior to the period for which the
extension may be granted. Interest at the rate prescribed by Section
12631 shall be paid for the period of time for which the extension is
granted.

12256. All amounts paid under this article, other than penalties
and interest, shall be allowed as a credit on the annual tax imposed
by Section 28 of Article XIII of the California Constitution and this
part.

12257. (a) If the total amount of prepayments for any calendar year
exceeds the amount of annual tax for that year, the excess shall be
treated as an overpayment of annual tax and, at the election of the
insurer or Medi-Cal managed care plan, may be credited against the
amounts due and payable for the first prepayment of the following
year. Any amount of the overpayment not so credited shall be allowed
as a credit or refund under Article 2 (commencing with Section 12977)
of Chapter 7 of this part.
(b) 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.

12257. (a) If the total amount of prepayments for any calendar year
exceeds the amount of annual tax for that year, the excess shall be
treated as an overpayment of annual tax and, at the election of the
insurer, may be credited against the amounts due and payable for the
first prepayment of the following year. Any amount of the overpayment
not so credited shall be allowed as a credit or refund under Article
2 (commencing with Section 12977) of Chapter 7 of this part.
(b) This section shall become operative on July 1, 2011.

12258. (a) Any insurer or Medi-Cal managed care plan that fails to
pay any prepayment within the time required shall pay a penalty of 10
percent of the amount of the required prepayment, plus interest at
the modified adjusted rate per month, or fraction thereof,
established pursuant to Section 6591.5, from the due date of the
prepayment until the date of payment but not for any period after the
due date of the annual tax. Assessments of prepayment deficiencies
may be made in the manner provided by deficiency assessments of the
annual tax.
(b) 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.

12258. (a) Any insurer that fails to pay any prepayment within the
time required shall pay a penalty of 10 percent of the amount of the
required prepayment, plus interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the due date of the prepayment until the date of payment but not
for any period after the due date of the annual tax. Assessments of
prepayment deficiencies may be made in the manner provided by
deficiency assessments of the annual tax.
(b) This section shall become operative on July 1, 2011.

12259. The provisions of this article apply to the State
Compensation Insurance Fund as well as to private insurers.

12260. (a) Notwithstanding any other provision of this article, the
commissioner may relieve an insurer or Medi-Cal managed care plan of
its obligation to make prepayments where the insurer or Medi-Cal
managed care plan establishes to the satisfaction of the commissioner
that the insurer has ceased to transact insurance in this state or
the Medi-Cal managed care plan has ceased to operate a plan in this
state, or the insurer's or Medi-Cal managed care plan's annual tax
for the current year will be less than five thousand dollars
($5,000).
(b) 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.

12260. Notwithstanding any other provision of this article, the
commissioner may relieve an insurer of its obligation to make
prepayments where the insurer establishes to the satisfaction of the
commissioner that either the insurer has ceased to transact insurance
in this state, or the insurer's annual tax for the current year will
be less than five thousand dollars ($5,000).
(b) This section shall become operative on July 1, 2011.