Sec. KKKK-1. 36 MRSA §2513, first ¶, as amended by PL 2005, c. 218, §30, is further amended to read:
Every insurance company or association that does business or collects premiums or assessments including annuity considerations in the State, including surety companies and companies engaged in the business of credit insurance or title insurance, shall, for the privilege of doing business in this State, and in addition to any other taxes imposed for such privilege pay a tax upon all gross direct premiums including annuity considerations, whether in cash or otherwise, on contracts written on risks located or resident in the State for insurance of life, annuity, fire, casualty and other risks at the rate of 2% a year. Every surplus lines insurer that does business or collects premiums in the State shall, for the privilege of doing business in this State, and in addition to any other taxes imposed for such privilege, pay a tax upon all gross direct premiums, whether in cash or otherwise, on contracts written on risks located or resident in the State at the rate of 3% a year. The tax must be paid by the insurer's licensed producer with surplus lines authority pursuant to Title 24-A, section 2016. For purposes of this section, the term "annuity considerations" includes amounts paid to an insurance company when received for the purchase of a contract that may result in an annuity, even when the annuitization never occurs or does not occur until some time in the future and the amounts are in the meantime applied to an investment vehicle other than an annuity. This section does not apply to mutual fire insurance companies under section 2517 or to captive insurance companies incorporated formed or licensed under Title 24-A, chapter 83 or under the laws of another state.
Sec. KKKK-2. 36 MRSA §2513-B, as amended by PL 1997, c. 583, §6, is repealed.
Sec. KKKK-3. 36 MRSA §2515, as amended by PL 2003, c. 20, Pt. CC, §2 and affected by §3, is further amended to read:
§ 2515. Amount of tax
In determining the amount of tax due under section 2513 or 2513-B, each company shall deduct from the full amount of gross direct premiums the amount of all direct return premiums on the gross direct premiums and all dividends paid to policyholders on direct premiums, and the tax must be computed by those companies or their agents. Except when direct return premiums are returned in the same tax year that the premium was paid, the deduction allowed in this section may be taken only if the tax under this Part has been paid.
Sec. KKKK-4. 36 MRSA §2518, as amended by PL 1997, c. 435, §4, is further amended to read:
§ 2518. Neglect to make return; assessment; failure to pay
If any insurance company , captive insurance company or association fails to pay on demand a tax assessed under section 141, subsection 2, paragraph C, the State Tax Assessor shall certify that failure to the Superintendent of Insurance who shall give notice to the company or association that it may not do any more business in the State. Whoever, after such notice, does business for such company or association is guilty of a Class E crime.
Sec. KKKK-5. 36 MRSA §2521-A, as amended by PL 2005, c. 218, §31, is further amended to read:
§ 2521-A. Returns; payment of tax
Every insurance company, captive insurance company, association, producer or attorney-in-fact of a reciprocal insurer subject to tax as imposed by this chapter shall on or before the last day of each April, the 25th day of each June and the last day of each October file with the State Tax Assessor on forms prescribed by the State Tax Assessor assessor a return for the quarter ending the last day of the preceding month, except for the month of June, which is for the quarter ending June 30th. These returns may be on an estimated basis, as long as each April and June installment equals at least 35% of the total tax paid for the preceding calendar year or 35% of the total tax to be paid for the current calendar year. The remaining installments must equal 15% of the total tax to be paid for the preceding calendar year or 15% of the total tax to be paid for the current year. An authorized company official shall affirm which elective is selected. Such elective can not be changed during the current calendar year. The final return must be filed on or before March 15th covering the prior calendar year.
At the time of filing such returns, each insurance company, captive insurance company, association or attorney-in-fact of a reciprocal insurer shall pay to the State Tax Assessor assessor the amount of tax shown due.
Insurance companies, captive insurance companies, associations or attorneys-in-fact of a reciprocal insurer with annual tax liability not exceeding $500 may with approval of the State Tax Assessor assessor file an annual return with payment on or before March 15th covering the prior calendar year.
Sec. KKKK-6. 36 MRSA §5102, sub-§6, as amended by PL 2001, c. 439, Pt. D, §1 and affected by §9, is further amended to read:
For purposes of this subsection, a corporation described in paragraph A is an "insurance company," and a health maintenance organization to the extent operated under authority of a certificate issued by the Superintendent of Insurance pursuant to Title 24-A, section 4204 is a "Maine health maintenance organization." Notwithstanding paragraph A, an insurance company is subject to the tax imposed by this Part with respect to income it receives from a Maine health maintenance organization, except where the Maine health maintenance organization is separately organized and subject to income taxation. The provisions of this Part pertaining to the taxation and reporting obligations of a unitary business, including section 5200, section 5220, subsection 5 and section 5244, apply to the income, factors and affiliations of an insurance company arising from a Maine health maintenance organization as though the Maine health maintenance organization were a separate corporation, but do not otherwise apply to such insurance company.
Sec. KKKK-7. Application. This Part applies to tax years beginning on or after January 1, 2007.