1. The Laws of New York
  2. Consolidated Laws
  3. Tax
  4. Article 33: Franchise Taxes On Insurance Corporations


Section 1512 Exemptions

Tax (TAX)

(a) This article shall not apply to:

  (1) the government of the United States, or of any state or municipality thereof, or any instrumentality of any such government;

  (2) any charitable, religious, missionary, educational or philanthropic non-stock corporation that would have been excepted from the classification of the business of insurance by section nine of the insurance law in effect immediately prior to January first, nineteen hundred forty, or any person, firm, corporation or association that would have been exempted from the provisions of article six of such insurance law by section two hundred fourteen thereof, or exempted from the provisions of article seven of such insurance law by section two hundred forty-five thereof;

  (3) any retirement system or pension fund which does exclusively an annuity business;

  (4) any non-profit medical expense indemnity or hospital service corporation organized under article forty-three of the insurance law;

  (5) any incorporated or unincorporated fraternal benefit society, or in the event of (i) the conversion of any such society into a mutual life insurance company or (ii) the reinsurance of the business of such society by the superintendent of financial services pursuant to an order of liquidation, the premiums payable under insurance benefit certificates issued by such society prior to the conversion or reinsurance;

  (6) any corporation for the insurance of domestic animals on the cooperative or assessment plan, organized under the laws of this state; and

  (7) a town or county cooperative insurance corporation as heretofore contemplated by section one hundred eighty-seven of this chapter in effect immediately prior to January first, nineteen hundred seventy-four.

  (8) any not-for-profit voluntary employees' beneficiary association which is exempt from federal income tax pursuant to section 501 (c) (9) of the United States internal revenue code, the members of which are employees or the beneficiaries or dependents of the employees of a single employer or an affiliated group of employers. For purposes of this paragraph, an affiliated group shall mean one or more chains of corporations connected through stock ownership with a common parent if (i) eighty percent or more of the voting stock of each corporation other than the common parent is owned directly by one or more of the other corporations and (ii) eighty percent or more of the voting stock of at least one of the corporations other than the common parent is owned directly by the common parent.

  (9) any nonprofit property/casualty insurance company organized pursuant to section six thousand seven hundred three of the insurance law.

  (10) any nonprofit health maintenance organization required to obtain a certificate of authority under article forty-four of the public health law.

  (b) The tax imposed by section fifteen hundred ten shall not apply to:

  (1) any insurance on property or risks located or resident outside the state of New York written by a fire or life insurance company organized and operated, without profit to any private shareholder or individual, exclusively for the purpose of aiding and strengthening charitable, religious, missionary, educational or philanthropic institutions, by issuing insurance and annuity contracts only to or for the benefit of such institutions, to individuals engaged in the services of such institutions, and to members of the immediate families of such individuals;

  (2) any insurance on risks resident outside of the state of New York written by a life insurance company which has been organized for the purpose of establishing a non-profit voluntary employees beneficiary association to provide life, sick, accident or other benefits to eligible employees or their beneficiaries, is operated exclusively for said purposes and without profit, direct or indirect, to any private shareholder or individual, and is duly exempt from income taxation pursuant to the United States internal revenue code; or

  (3) except in the case of foreign and alien title insurance corporations, premiums, other than those for accident and health insurance, written, procured or received in this state for insurance on property or risks located or resident outside the United States.

  (c) The taxes imposed by sections fifteen hundred one, fifteen hundred two-a, and fifteen hundred ten of this article shall not apply to any corporation, association, joint stock company or association, person, society, aggregation or partnership doing an insurance business as a member of the New York insurance exchange described in section six thousand two hundred one of the insurance law. However, such corporations, associations, joint stock companies or associations, persons, societies, aggregations or partnerships must compute an allocated entire net income pursuant to sections fifteen hundred three and fifteen hundred four of this article and transmit a return to the tax commission pursuant to section fifteen hundred fifteen of this article.