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§ 4-211. Premium receipts tax for insureds

West's Annotated Code of MarylandInsuranceEffective: July 1, 2011

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 4. General Requirements for Insurers
Subtitle 2. Unauthorized Insurers (Refs & Annos)
Effective: July 1, 2011
MD Code, Insurance, § 4-211
§ 4-211. Premium receipts tax for insureds
Currentness
Application of section
(a) This section does not apply to wet marine and transportation insurance.
Premium receipts tax for insureds
(b)(1) If an insured procures, continues, or renews insurance from an unauthorized insurer that is subject to a report under § 4-210 of this subtitle, a premium receipts tax of 3% of the gross premiums charged for the insurance is levied on the obligation, chose in action, or right represented by the premium charged for the insurance.
(2) If an insurance contract subject to the tax is canceled and rewritten, the additional premium, for purposes of the premium receipts tax, is the premium in excess of the unearned premium of the canceled insurance contract.
Failure to withhold tax from premium
(c) If the insured fails to withhold from the premium the amount of the tax levied under this section, the insured is liable for the amount of the tax imposed under subsection (b) of this section and shall pay the tax to the Commissioner.
Penalties for taxes not timely paid
(d) If the tax imposed under subsection (b) of this section is not timely paid, the amount of the tax due shall be increased by a penalty of:
(1) 25% of the tax due; and
(2) an amount computed at the rate of 1% per month or part of a month after the date the payment is due until the date the payment is made.
Actions by Attorney General to recover tax
(e) If the tax is not timely paid under this section, on request of the Commissioner, the Attorney General shall proceed in a court of this State or another state or in a federal court or agency to recover the tax.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 2011, c. 520, § 1, eff. July 1, 2011; Acts 2011, c. 521, § 1, eff. July 1, 2011.
Formerly Art. 48A, § 209.
MD Code, Insurance, § 4-211, MD INSURANCE § 4-211
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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