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This entry was published on 2014-09-22
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SECTION 9105
Fire insurance premium tax; foreign mutual fire insurance companies
Insurance (ISC) CHAPTER 28, ARTICLE 91
§ 9105. Fire insurance premium tax; foreign mutual fire insurance
companies. (a) (1) Every mutual fire insurance company or association
authorized to do business in this state pursuant to section four
thousand one hundred eight of this chapter shall pay to the
superintendent on or before the fifteenth day of February of each year a
tax of two per centum on all gross premiums collected or received by it
or them for direct insurance against loss or injury upon property
situated within this state during the preceding year ending the
thirty-first day of December.

(2) The tax shall be determined after deducting from such gross
premiums, premiums upon policies not taken; premiums returned on
cancelled policies; and any dividends or refunds or returns paid to
policyholders or applied in part payment of any renewal premium during
such year.

(b) (1) Every such mutual fire insurance company or association whose
business is confined chiefly to the insurance of sprinklered risks and
which is conducted solely for the benefit and protection of its members
and which pays no commissions or brokerages for the acquirement of its
business, in lieu of all other taxes on premiums, shall pay to the
superintendent on or before the fifteenth day of February of each year a
tax at the rate of two per centum on all gross premiums upon policies on
risks located in this state in force on the thirty-first day of December
next preceding.

(2) The tax shall be determined after deducting from such gross
premiums the dividends and returns and the unused or unabsorbed portion
of such gross premiums computed at the average rate of such dividends
and returns and the unused or unabsorbed portion of such gross premiums
actually paid to policyholders or applied in part payment of any renewal
premiums on its annual policy expiring during such year.

(c) (1) On or before the fifteenth day of February of each year every
mutual fire insurance company or association shall file with the
superintendent a statement showing the aggregate amount of gross
premiums collected for insurance against loss or injury and the several
items of deduction referred to under paragraph two of subsection (a)
hereof, and specifying the aggregate amounts of such gross premiums so
collected and the deductions therefrom by city, village, fire district,
fire alarm district, or fire protection district in which the property
covered by such insurance is located.

(2) In the case of a mutual fire insurance company or association
whose business is confined chiefly to the insurance of sprinklered risks
and which is conducted solely for the benefit and protection of its
members and which pays no commissions or brokerages for the acquirement
of its business, such statement shall, in lieu of the information
required pursuant to paragraph one hereof, specify by city, village,
fire district, fire alarm district, or fire protection district:

(A) the aggregate amount of such gross premiums upon policies on risks
located in this state in force at last year-end; and

(B) the dividends and returns and the unused or unabsorbed portion of
such aggregate amount of gross premiums, computed at the average rate of
such dividends and returns and the unused or unabsorbed portion of such
gross premiums, actually paid or applied in part payment of any renewal
premiums on its annual policies expiring during such year.

(3) Those provisions of this subsection which would require the
determination of the city, village, fire district, fire alarm district
or fire protection district in which an insured property is located
shall not apply to policies which insure motor vehicles provided that:

(A) the mutual fire insurance company or association allocates the
gross premiums and deductions, subject to the tax required by this
section, received from such policies by city, village, fire district,
fire alarm district or fire protection district using a percentage of
allocation which is based upon the amounts of all other premiums
required to be reported by this section; and

(B) the mutual fire insurance company or association has received the
approval of the superintendent to use this percentage of allocation.

(d) (1) The amount of all monies which were received by the
superintendent on or before the first day of April in each year under
the provisions of this section or section nine thousand one hundred four
of this article shall be distributed by him not later than the first day
of July in such year, after adding any earnings resulting from the
investment of such monies and deducting the expenses of collection and
distribution. Ten percent of such remaining monies received under this
section shall be paid to the treasurer of the Firemen's Association of
the State of New York for the support and maintenance of the firemen's
home at Hudson, New York, and the balance shall be paid as specified in
paragraph two hereof, in amounts which will be that proportion of the
balance so to be distributed which the total amount of fire insurance
business written by foreign mutual fire insurance companies on property
situated in such locality bears to the total amount of fire insurance
business written by foreign mutual fire insurance companies on property
situated in any and all of the protected localities in the state having
treasurers or other fiscal officers as designated in paragraph two
hereof afforded fire protection by a fire department or fire company and
upon which the tax provided in this section has been paid.

(2) Such payment shall be made (A) in the city of New York to the fire
commissioner as treasurer of the fire department of the city of New
York, and

(B) to the treasurer or other fiscal officer of the fire department
affording fire protection in each city, village, fire district, fire
alarm district, or fire protection district, or

(C) if any such fire department does not have a treasurer or other
fiscal officer then to the fiscal officer of the authorities having
jurisdiction and control of such fire department, or

(D) to such other person or entity as shall be designated in any
special law to receive such tax, and

(E) if such payment is received by the treasurer or other fiscal
officer of a fire department or fiscal officer of authorities having
jurisdiction and control of such fire department, such treasurer or
fiscal officer shall on or before the fifteenth day of July in each year
distribute the amount so received to the fire companies constituting the
fire department if such fire department is constituted of more than one
fire company.

(3) Except as otherwise provided in any special law, and except as to
the Firemen's Association of the State of New York, such tax shall be
used for the benefit of, as determined by the members thereof:

(A) the fire company receiving the tax, but this shall not preclude
the payment by a fire company of all or a part of such tax to the fire
department of which it is a part, or

(B) the fire department when such tax is not required under
subparagraph (E) of paragraph two of this subsection to be distributed
to fire companies.

(e) The provisions of this section shall not be changed, modified or
amended by any charter, local law, ordinance, resolution or regulation.