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Business Taxes Law Guide—Revision 2024

Tax on Insurers Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 7. Insurance Taxation

Chapter 3. All Insurance Other Than Ocean Marine

Article 3. Basis of Tax for Title Insurers

Section 12231


12231. "Income upon business" as basis of tax. In the case of an insurer transacting title insurance in this State, the basis of the tax is, in respect to each year, all income upon business done in this State, except:

(a) Interest and dividends.

(b) Rents from real property.

(c) Profits from the sale or other disposition of investments.

(d) Income from investments.

History—Added by Stats. 1961, p. 1983, operative January 1, 1962. Derived from former Section 12253.

Measure of tax.—"All income" of a title insurer for purposes of the insurance tax does not include amounts paid by independent underwritten title companies for their own negligence. Title Insurance Co. v. State Board of Equalization (1992) 4 Cal.4th 715.