0001| SENATE BILL 375
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| MANNY M. ARAGON
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO INSURANCE; INCREASING THE PREMIUM TAX FOR HEALTH AND
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0013| DENTAL BENEFITS COVERAGE.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 59A-6-2 NMSA 1978 (being Laws 1984,
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0017| Chapter 127, Section 102, as amended) is amended to read:
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0018| "59A-6-2. PREMIUM TAX.--
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0019| A. The premium tax provided for in this section
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0020| shall apply as to the following taxpayers:
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0021| (1) each insurer authorized to transact
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0022| insurance in New Mexico;
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0023| (2) each insurer formerly authorized to
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0024| transact insurance in New Mexico and receiving premiums on
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0025| policies remaining in force in New Mexico, except that this
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0001| provision shall not apply as to an insurer that withdrew from
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0002| New Mexico prior to March 26, 1955;
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0003| (3) each plan operating under provisions of
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0004| Chapter 59A, Articles 46 through 49 NMSA 1978;
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0005| (4) each property bondsman, as that person is
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0006| defined in Section 59A-51-2 NMSA 1978, as to any consideration
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0007| received as security or surety for a bail bond in connection
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0008| with a judicial proceeding, which consideration shall be
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0009| considered "gross premiums" for the purposes of this section;
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0010| and
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0011| (5) each unauthorized insurer that has assumed
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0012| a contract or policy of insurance directly or indirectly from an
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0013| authorized or formerly authorized insurer and is receiving
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0014| premiums on such policies remaining in force in New Mexico,
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0015| except that this provision shall not apply if a ceding insurer
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0016| continues to pay the tax provided in this section as to such
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0017| policy or contract.
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0018| B. Each such taxpayer shall pay in accordance with
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0019| this subsection [three percent] the specified percentage of
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0020| the gross premiums and membership and policy fees received by it
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0021| on insurance or contracts covering risks within this state
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0022| during the preceding calendar year, less all return premiums,
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0023| including dividends paid or credited to policyholders or
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0024| contract holders and premiums received for reinsurance on New
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0025| Mexico risks. The percentage to be paid is:
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0001| (1) five percent in the case of health
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0002| insurance or any health or dental benefits coverage issued by
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0003| any plan operating under the provisions of Chapter 59A, Articles
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0004| 46 through 48 NMSA 1978; and
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0005| (2) three percent in all other cases.
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0006| C. For each calendar quarter, an estimated payment
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0007| shall be made on April 15, July 15, October 15 and the following
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0008| January 15. The estimated payments shall be equal to at least
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0009| one-fourth of either the payment made during the previous
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0010| calendar year or eighty percent of the actual payment due for
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0011| the current calendar year, whichever is greater. The final
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0012| adjustment for payments due for the prior year shall be made
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0013| with the return which shall be filed on April 15 of each year,
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0014| at which time all taxes for that year are due. Dividends paid
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0015| or credited to policyholders or contract holders and refunds,
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0016| savings, savings coupons and similar returns or credits applied
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0017| or credited to payment of premiums for existing, new or
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0018| additional insurance shall, in the amount so used, constitute
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0019| premiums subject to tax under this section for the year in which
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0020| so applied or credited. [Provided that as to every insurer
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0021| which throughout such preceding calendar year had at least forty
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0022| percent of its admitted assets invested in New Mexico
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0023| investments, as the same are defined in Subsection C of this
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0024| section, the rate of such tax shall be nine-tenths of one
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0025| percent in lieu of three percent; provided further that,
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0001| effective January 1, 1992, the rate shall be one and four-tenths
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0002| percent; effective July 1, 1992, the rate shall be one and nine-tenths percent; effective January 1, 1993, the rate shall be two
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0003| and four-tenths percent; and effective July 1, 1993 and
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0004| thereafter, the rate shall be three percent.
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0005| C. New Mexico investments for the purpose of
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0006| Subsection B of this section are defined as follows:
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0007| (1) real estate located within New Mexico;
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0008| (2) bonds or obligations of New Mexico or of
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0009| any county or other subdivision thereof;
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0010| (3) bonds, debentures or secured obligations of
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0011| any corporation that has fifty percent of its assets located
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0012| within New Mexico;
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0013| (4) first mortgages secured by real estate
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0014| located within New Mexico;
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0015| (5) deposits in state banks, national banks and
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0016| trust companies having their principal place of business within
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0017| New Mexico;
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0018| (6) policy loans to residents of New Mexico;
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0019| and
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0020| (7) preferred and common stock of corporations
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0021| having at least fifty percent of their assets located within New
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0022| Mexico.
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0023| D. Nothing contained in Subsection C of this section
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0024| shall be construed to affect any provision of Chapter 59A,
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0025| Article 9 NMSA 1978.
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0001| E.] D. Exempted from the tax imposed by
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0002| Subsection B of this section are premiums attributable to
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0003| insurance or contracts purchased by the state or any political
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0004| subdivision and payments received by a health maintenance
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0005| organization from the federal secretary of health and human
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0006| services pursuant to a contract issued under the provisions of
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0007| 42 U.S.C. Section 1395 mm(g)."
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0021|
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0022|
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0023| FORTY-SECOND LEGISLATURE
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0024| SECOND SESSION, 1996
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0025|
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0001|
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0002| JANUARY 29, 1996
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0003|
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0004| Mr. President:
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0005|
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0006| Your COMMITTEES' COMMITTEE, to whom has been referred
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0007|
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0008| SENATE BILL 375
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0009|
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0010| has had it under consideration and finds same to be GERMANE, PURSUANT
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0011| TO CONSTITUIONAL PROVISIONS, and thence referred to the WAYS AND
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0012| MEANS COMMITTEE.
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0013|
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0014| Respectfully submitted,
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0016|
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0017|
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0018|
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0019| __________________________________
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0020| SENATOR MANNY M. ARAGON, Chairman
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0021|
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0022|
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0023|
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0024| Adopted_______________________ Not Adopted_______________________
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0025| (Chief Clerk) (Chief Clerk)
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0001|
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0002|
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0003| Date ________________________
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0007| S0375CC1
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