Section 19-727 - Applicability of tax laws. - Maryland Statutes

§ 19-727. Applicability of tax laws.
 

(a)  In general.- Except as provided in subsection (b) of this section, a health maintenance organization is not exempted from any State, county, or local taxes solely because of this subtitle. 

(b)  Exceptions.-  

(1) A nonprofit health maintenance organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code is not subject to the insurance premium tax under Title 6, Subtitle 1 of the Insurance Article. 

(2) Premiums received by an insurer under policies that provide health maintenance organization benefits are not subject to the premium tax imposed under Title 6, Subtitle 1 of the Insurance Article to the extent: 

(i) Of the amounts actually paid by the insurer to a nonprofit health maintenance organization that operates only as a health maintenance organization; or 

(ii) The premiums have been paid by that nonprofit health maintenance organization. 
 

[An. Code 1957, art. 43, § 856; 1982, ch. 21, § 2; 1988, ch. 110, § 1; 1997, ch. 70, § 4; 2004 Sp. Sess., ch. 5, § 1; 2005, ch. 280, § 2; ch. 444, § 1.]