Senate Bill No. 246

Senate Bill No. 246-Senators Titus, Wiener, O'Connell and Regan

CHAPTER

138

AN ACT relating to insurance; eliminating the prospective requirement for the prepayment of the insurance premium tax; revising the date on which annual reports are due; revising the time within which quarterly payments are payable; and providing other matters properly relating thereto.

[Approved June 9, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 680B.030 is hereby amended to read as follows:
680B.030 1. Each insurer and each formerly authorized insurer with respect to insurance transacted while an authorized insurer and property bondsman shall, on or before March [1] 15 of each year, or within any reasonable extension of time therefor which the executive director of the department of taxation may for good cause have granted on or before that date, file with the department of taxation a report in such form as prescribed by the executive director of the department of taxation in cooperation with the commissioner, showing total income derived from direct premiums written, including policy, membership and other fees and assessments, and all other considerations for insurance, bail or annuity contracts written during the next preceding calendar year on account of policies and contracts covering property, subjects or risks located, resident or to be performed in this state, with proper proportionate allocation of premiums as to such persons, property, subjects or risks in this state insured under policies and contracts covering persons, property, subjects or risks located or resident in more than one state, after deducting from the total income derived from direct premiums written:
(a) The amount of return premiums; and
(b) Dividends, savings and unabsorbed premium deposits returned to policyholders in cash or credited to their accounts.
2. The report must be:
(a) Accompanied by a payment made payable to the department of taxation in an amount equal to all of the tax required to be paid on net direct premiums and net direct considerations written during the preceding calendar year, less any quarterly payments made for the same period pursuant to NRS 680B.032; and
(b) Verified by the oath or affirmation of the insurer's president, vice president, secretary, treasurer or manager.
Sec. 2. NRS 680B.032 is hereby amended to read as follows:
680B.032 1. Each insurer which, pursuant to NRS 680B.027, paid or is required to pay a tax of at least $2,000 on net direct premiums and net direct considerations written during the preceding calendar year, shall file a quarterly report in such form as prescribed by the executive director of the department of taxation. Each report must be accompanied by a payment made payable to the department of taxation in an amount equal to [25 percent of] the tax [paid or] required to be paid on net direct premiums and net direct considerations written during the preceding calendar [year.] quarter. Each quarterly payment is due on the last day of the last month in each calendar quarter [.] and is payable on or before the last day of the month next succeeding the calendar quarter for which the payment is due.
2. If an overpayment of the tax imposed by NRS 680B.027 results from the payments made pursuant to this section, the insurer shall apply the overpayment against each succeeding quarterly [estimated] payment due in the current calendar year until the overpayment has been extinguished.
Sec. 3. Section 12 of chapter 283, Statutes of Nevada 1995, at page 472, is hereby amended to read as follows:

Sec. 12. 1. This section and sections 1 to 7, inclusive, 9, 10 and 11 of this act become effective upon passage and approval and apply retroactively to January 1, 1995.

2. Section 8 of this act becomes effective on January 1, 1996.

[3. Sections 1 to 9, inclusive, of this act expire by limitation on January 1, 1998.]

Sec. 4. 1. This section and section 3 of this act become effective upon passage and approval.
2. Sections 1 and 2 of this act become effective on January 1, 1998.
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