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| PRIOR PRINTER'S NO. 1981 | PRINTER'S NO. 2052 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GODSHALL, MICOZZIE, BOYD, FABRIZIO, KOTIK, PICKETT, QUINN, SCHRODER AND SONNEY, MAY 25, 2011 |
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| AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 8, 2011 |
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| AN ACT |
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1 | Amending the act of July 6, 1917 (P.L.723, No.262), entitled "An |
2 | act imposing a tax on premiums of insurance and reinsurance |
3 | in foreign insurance companies and associations not |
4 | registered in this Commonwealth; providing the method of |
5 | collection of such tax, and imposing penalties," further |
6 | providing for tax on contracts with unauthorized companies |
7 | and deductions. |
8 | The General Assembly of the Commonwealth of Pennsylvania |
9 | hereby enacts as follows: |
10 | Section 1. Section 1 of the act of July 6, 1917 (P.L.723, |
11 | No.262), entitled "An act imposing a tax on premiums of |
12 | insurance and reinsurance in foreign insurance companies and |
13 | associations not registered in this Commonwealth; providing the |
14 | method of collection of such tax, and imposing penalties" is |
15 | amended to read: |
16 | Section 1. (a) (1) Be it enacted, &c., That whenever any |
17 | person, corporation, copartnership, or association enters into |
18 | any contract of insurance or reinsurance of any kind with any |
19 | insurance company or association of another [State] state or of |
20 | a foreign country, not registered or entitled to do business in |
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1 | this Commonwealth, such person, corporation, copartnership, or |
2 | association shall, at the time of making such contracts and at |
3 | the time of making any periodical payment, deduct from all |
4 | premiums on such insurance or reinsurance a per centum thereof |
5 | equal to the per centum tax imposed on the premiums of insurance |
6 | companies and associations of other [State] state and of foreign |
7 | countries that are registered and entitled to do business in |
8 | this Commonwealth, and shall forthwith pay such amount into the |
9 | State Treasury. |
10 | (2) For policies placed after the effective date of this |
11 | provision, the premium taxes provided for in this section shall |
12 | be levied upon that portion of the premium computed in |
13 | accordance with section 1621(a) of the act of May 17,1921 |
14 | (P.L.682, No.284), known as "The Insurance Company Law of 1921." |
15 | (b) (1) Any person, corporation, copartnership, or |
16 | association failing to make such deduction and payment into the |
17 | State Treasury shall be liable for the amount of such tax, with |
18 | interest at the rate of twelve per centum per annum, to be |
19 | collected in the same manner as other taxes of the Commonwealth |
20 | are collected. |
21 | (2) Within thirty days after the last day of the month in |
22 | which the insurance was procured, continued or renewed, a report |
23 | of the transaction shall be filed on forms prescribed by the |
24 | Department of Revenue. The report shall set forth the |
25 | information required of surplus lines licensees as required in |
26 | any report described in section 1621 of "The Insurance Company |
27 | Law of 1921." The tax shall be paid on the date the report is |
28 | due as provided in this section. The insured shall file a copy |
29 | of the report with the Insurance Department upon its request. |
30 | (c) A penalty shall be imposed for failure to file the |
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1 | report required by this section on or before the due date in |
2 | accordance with the rules of section 403(d) of the act of March |
3 | 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971." |
4 | (d) (1) The provisions of this section, insofar as they |
5 | relate to the collection, reporting and remittance of tax for |
6 | policies placed after June 30, 2011, shall apply when this |
7 | Commonwealth is the home state of the insured. |
8 | (2) The provisions of this section, insofar as they relate |
9 | to the imposition of tax and penalties for policies placed after |
10 | June 30, 2011, shall apply when this Commonwealth is the home |
11 | state of the insured. |
12 | (3) As used in this subsection, the term "home state" shall |
13 | mean: |
14 | (i) Except as provided in subparagraph (ii), with respect to |
15 | an insured: |
16 | (A) the state in which an insured maintains its principal |
17 | place of business or, in the case of an individual, the |
18 | individual's principal residence; or |
19 | (B) if one hundred per centum of the insured risk is located |
20 | out of the state referred to in clause (A), the state to which |
21 | the greatest percentage of the insured's taxable premium for |
22 | that insurance contract is allocated. |
23 | (ii) If more than one insured from an affiliated group are |
24 | named insureds on a single nonadmitted insurance contract, the |
25 | term means the home state, as determined under subparagraph (i), |
26 | of the member of the affiliated group that has the largest |
27 | percentage of premium attributed to it under the insurance |
28 | contract. |
29 | Section 2. This act shall take effect in 60 days | <-- |
30 | immediately. | <-- |
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