1999 Tax Law Changes - Insurance Premiums Tax XX. INSURANCE PREMIUMS TAX G.S. 58-6-25 - Insurance Regulatory Charge: The percentage rate to be used in calculating the insurance regulatory charge under this statute is 7% for the 1999 calendar year. This charge is a percentage of gross premiums tax liability. The charge for 1998 was 6%. Previously, Service Corporations and Health Maintenance Organizations were not required to pay the insurance regulatory charge. Effective January 1, 2000, however, they are subject to the insurance regulatory charge. The first returns reflecting this charge will be due March 15, 2001. HMOs and Service Corporations compute the charge using a "presumed premium tax liability" as if they were an insurer providing health insurance. (1999 regulatory rate effective January 1, 1999; HB 1289, S.L. 99-413; expansion to include Service Corporations and HMOs effective January 1, 2000; HB 1289, S.L. 99-413.) Apply Article 3A Credits To Gross Premiums Tax: G.S. 105-129.5(a) was amended to allow all the Article 3A credits to be taken against the gross premiums tax levied in Article 8B of Chapter 105 of the General Statutes. Under prior law, only the credit for a central administrative office could be taken against this tax. Article 3A credits are the tax incentives for new and expanding businesses and include the jobs tax credit and the credit for investing in machinery and equipment. (Effective for taxable years beginning on or after January 1, 1999; SB 1115, s. 2, S.L. 99-360.)
1999 Tax Law Changes - Insurance Premiums Tax XX. INSURANCE PREMIUMS TAX G.S. 58-6-25 - Insurance Regulatory Charge: The percentage rate to be used in calculating the insurance regulatory charge under this statute is 7% for the 1999 calendar year. This charge is a percentage of gross premiums tax liability. The charge for 1998 was 6%. Previously, Service Corporations and Health Maintenance Organizations were not required to pay the insurance regulatory charge. Effective January 1, 2000, however, they are subject to the insurance regulatory charge. The first returns reflecting this charge will be due March 15, 2001. HMOs and Service Corporations compute the charge using a "presumed premium tax liability" as if they were an insurer providing health insurance. (1999 regulatory rate effective January 1, 1999; HB 1289, S.L. 99-413; expansion to include Service Corporations and HMOs effective January 1, 2000; HB 1289, S.L. 99-413.) Apply Article 3A Credits To Gross Premiums Tax: G.S. 105-129.5(a) was amended to allow all the Article 3A credits to be taken against the gross premiums tax levied in Article 8B of Chapter 105 of the General Statutes. Under prior law, only the credit for a central administrative office could be taken against this tax. Article 3A credits are the tax incentives for new and expanding businesses and include the jobs tax credit and the credit for investing in machinery and equipment. (Effective for taxable years beginning on or after January 1, 1999; SB 1115, s. 2, S.L. 99-360.)
