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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 5. Prepayments*
Section 12254
12254. Amount of prepayment. [Repealed by Stats. 2013, Ch. 33 (SB 78) in effect June 27, 2013.]
12254. Amount of prepayment. [Repealed by Stats. 2013, Ch. 33 (SB 78), effective January 1, 2015.]
12254. Amount of prepayment. (a) The amount of each prepayment shall be 25 percent of the amount of the annual insurance tax liability reported on the return of the insurer for the preceding calendar year.
(b) In establishing the prepayment amount of an insurer that has acquired the business of another insurer, the amount of tax liability of the acquiring insurer reported for the preceding calendar year shall be deemed to include the amount of tax liability of the acquired insurer reported for that year.
(c ) Notwithstanding subdivision (a), for a health insurer subject to Section 12202.2 both of the following shall apply:
(1) On or after July 1, 2016, and on or before June 30, 2019, a prepayment shall not be required.
(2) The amount of each prepayment due after June 30, 2019, shall be 25 percent of the amount of what the annual insurance tax liability reported on the return of the insurer for the preceding calendar year would have been if Section 12202.2 had never been operative.
(d) This section shall become operative on July 1, 2013.
History—Added by Stats. 2013, Ch. 33 (SB 78), in effect June 27, 2013, but operative July 1, 2013. Stats. 2016, Ch. 320 (AB 1625), in effect September 13, 2016, but operative July 1, 2016, added subdivision (c) and relettered former subdivision (c) as subdivision (d).
* Article 5 was added by Stats. 1969, p. 1473, in effect August 14, 1969, operative January 1, 1970.