HB620 (2019) Detail

Relative to the penalty fee structure for late premium tax payments.


CHAPTER 179

HB 620-FN - FINAL VERSION

 

6Jun2019... 2371-EBA

2019 SESSION

19-0682

01/05

 

HOUSE BILL 620-FN

 

AN ACT relative to the penalty fee structure for late premium tax payments.

 

SPONSORS: Rep. Hunt, Ches. 11

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill establishes a graduated fee schedule for payment of the insurance premium tax.

 

This bill is a request of the insurance department.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

6Jun2019... 2371-EBA 19-0682

01/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to the penalty fee structure for late premium tax payments.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

179:1  Premium Tax; Collection, Minimum, Penalty, and Prepayments.  Amend RSA 400-A:32, IV to read as follows:

IV.  Any insurer failing to file the report required by RSA 400-A:31 or failing to remit the proper tax within the time for filing shall pay a penalty [equal to 10] contingent upon the number of days that have passed since the due date.  For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent [on] of the amount of the tax due.  For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due.  For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.  If the tax or the estimated tax is not paid when due, the commissioner may suspend or revoke the insurer's certificate of authority.  

179:2  Insurance Department; Administrative Fund.  Amend RSA 400-A:39, XI to read as follows:

XI.  Any insurer that does not pay amounts due under this section within 45 days of the billing date shall incur a late payment penalty [equal to 10 percent of the amount assessed.  In addition, the sum total of the assessment and penalty shall accrue with interest, from the 45th day until the date of payment, at a rate of 0.050 percent per day compounded daily] contingent upon the number of days that have passed since the due date.  For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due.  For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due.  For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.

179:3  Foreign Insurance Companies; Annual Statements; Tax.  Amend RSA 405:29, II to read as follows:

II.  Any producer failing to file the report or failing to remit the proper tax within the time period for filing shall pay a penalty [equal to 10] contingent upon the number of days that have passed since the due date.  For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due.  For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due.  For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.

179:4  Risk Retention Act; Risk Retention Groups Not Chartered in This State.  Amend RSA 405-A:3, III(a) to read as follows:

(a)  Each risk retention group shall be liable for the payment of premium taxes and taxes on premiums of direct business for risks resident or located within this state, and shall report to the commissioner the net premiums written for risks resident or located within this state.  Such risk retention group shall be subject to taxation, and any applicable fines and penalties related thereto, on the same basis as a foreign admitted insurer.  A risk retention group failing to remit the proper tax within the time period for filing shall pay a penalty contingent upon the number of days that have passed since the due date.  For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due.  For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due.  For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.

179:5  Unauthorized Insurance Premium Tax.  Amend RSA 406-B:11, I to read as follows:

I.  Except as to premiums on lawfully procured surplus lines insurance pursuant to the surplus lines laws of this state, and premiums on unlicensed insurance procured by industrial insurers on which a tax has been paid pursuant to RSA 406-B:16, VI and premiums on independently procured insurance on which a tax has been paid pursuant to RSA 406-B:17, every unauthorized insurer shall pay to the commissioner before March 1 next succeeding the calendar year in which the insurance was so effectuated, continued or renewed a premium receipts tax of 4 percent of gross premiums charged for such insurance other than marine insurance and a premium receipts tax of 2 percent of gross premiums charged for such marine insurance on subjects resident, located or to be performed in this state.  Such insurance on subjects resident, located or to be performed in this state procured through negotiations or an application, in whole or in part occurring or made within or from within or outside of this state, or for which premiums in whole or in part are remitted directly or indirectly from within or outside of this state, shall be deemed to be insurance procured, or continued or renewed in this state.  The term "premium" includes all premiums, membership fees, assessments, dues, and any other consideration for insurance.  Such tax shall be in lieu of all taxes and fire department dues.  On default of any such unauthorized insurer in the payment of such tax the insured shall pay the tax.  If the tax prescribed by this section is not paid within the time stated, the tax shall be increased by a penalty [of 25 percent and by the amount of an additional penalty computed at the rate of one percent per month or any part thereof from the date such payment was due to the date paid.]  contingent upon the number of days that have passed since the due date.  For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due.  For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due.  For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.

179:6  Unauthorized Insurance Premium Tax.  Amend RSA 406-B:16, VI(b) to read as follows:

(b)  Any insured failing to file the report or failing to remit the proper tax within the time period for filing shall pay a penalty [equal to 10] contingent upon the number of days that have passed since the due date.  For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due.  For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due.  For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.

179:7  Independently Procured Insurance.  Amend RSA 406-B:17, V to read as follows:

V.  If the insured fails to withhold from the premiums the amount of tax herein levied, the insured shall be liable for the amount thereof and shall pay the same to the commissioner within the time stated in paragraph III.  If the tax prescribed by this section is not paid within the time stated in paragraph III, the tax shall be increased by a penalty [of 25 percent and by the amount of an additional penalty computed at the rate of one percent per month or any part thereof from the date such payment was due to the date paid] contingent upon the number of days that have passed since the due date.  For late payments received 1-30 days after the due date, the penalty fee shall be 3 percent of the amount of tax due.  For late payments received 31-60 days after the due date, the penalty fee shall be 6 percent of the amount of tax due.  For late payments received more than 60 days after the due date, the penalty fee shall be 12 percent of the amount of tax due.

179:8  Effective Date.  This act shall take effect January 1, 2020.

 

Approved: July 10, 2019

Effective Date: January 01, 2020

 

 

Links


Date Body Type
Feb. 7, 2019 House Hearing
Feb. 13, 2019 House Exec Session
House Floor Vote
Feb. 27, 2019 House Floor Vote
March 14, 2019 House Hearing
March 27, 2019 House Exec Session
April 4, 2019 House Floor Vote
April 23, 2019 Senate Hearing
May 2, 2019 Senate Floor Vote
May 23, 2019 Senate Floor Vote

Bill Text Revisions

HB620 Revision: 6546 Date: Dec. 3, 2019, 1:36 p.m.
HB620 Revision: 6072 Date: June 10, 2019, 8:21 a.m.
HB620 Revision: 4887 Date: Jan. 16, 2019, 8:46 a.m.

Docket


July 10, 2019: Signed by Governor Sununu 07/10/2019; Chapter 179; Eff: 01/01/2020


June 13, 2019: Enrolled 06/13/2019 HJ 19 P. 18


June 13, 2019: Enrolled (In recess 06/13/2019); SJ 21


June 6, 2019: Enrolled Bill Amendment # 2019-2371e: AA VV 06/06/2019 HJ 18 P. 40


May 30, 2019: Enrolled Bill Amendment # 2019-2371e Adopted, VV, (In recess of 05/30/2019); SJ 19


May 23, 2019: Ought to Pass: MA, VV; OT3rdg; 05/23/2019; SJ 17


May 23, 2019: Special Order to to the present time, Without Objection, MA; 05/23/2019; SJ 17


May 23, 2019: Committee Report: Ought to Pass, 05/23/2019; SC 23


May 2, 2019: Ought to Pass: MA, VV; Refer to Finance Rule 4-5; 05/02/2019; SJ 15


May 2, 2019: Committee Report: Ought to Pass, 05/02/2019; SC 20


April 23, 2019: Hearing: 04/23/2019, Room 100, SH, 01:45 pm; SC 19


April 11, 2019: Introduced 04/11/2019 and Referred to Commerce; SJ 13


April 4, 2019: Ought to Pass: MA VV 04/04/2019 HJ 12 P. 3


April 4, 2019: Committee Report: Ought to Pass for 04/04/2019 (Vote 20-0; CC) HC 18 P. 3


: Committee Report: Ought to Pass (Vote 20-0; CC)


March 27, 2019: Executive Session: 03/27/2019 10:00 am LOB 202


March 18, 2019: Full Committee Work Session: 03/18/2019 01:00 pm LOB 202


March 14, 2019: ==TIME CHANGE== Public Hearing: 03/14/2019 09:30 am LOB 202-204


Feb. 27, 2019: Referred to Ways and Means 02/27/2019 HJ 6 P. 5


Feb. 27, 2019: Ought to Pass: MA VV 02/27/2019 HJ 6 P. 5


: Committee Report: Ought to Pass (Vote 19-1; CC)


Feb. 27, 2019: Committee Report: Ought to Pass for 02/27/2019 (Vote 19-1; CC) HC 13 P. 4


Feb. 13, 2019: Executive Session: 02/13/2019 02:00 pm LOB 302


Feb. 13, 2019: Subcommittee Work Session: 02/13/2019 10:00 am LOB 302


Feb. 7, 2019: Public Hearing: 02/07/2019 01:30 pm LOB 302


Jan. 3, 2019: Introduced 01/03/2019 and referred to Commerce and Consumer Affairs HJ 3 P. 22