Ariz. Admin. Code § R20-6-205 - Local or Regional Retaliatory Tax Information
A. Definitions.
1. "Addition to the rate of tax" means the
tax rate determined under subsection (D) to be applied under A.R.S.
20-230(A) and
this Section to foreign or alien insurers domiciled in a foreign country or
other state that impose local or regional taxes.
2. "Alien insurer" has the meaning prescribed
in A.R.S. §
20-201.
3. "Arizona life insurer" means a domestic
insurer authorized to issue life insurance policies in this state within the
meaning of A.R.S. §
20-254 or annuities within the
meaning of A.R.S. §
20-254.01, regardless of whether
the insurer is authorized to transact disability insurance in this
state.
4. "Department" means the
Arizona Department of Insurance and Financial Institutions.
5. "Director" has the meaning prescribed in
A.R.S. §
20-102.
6. "Domestic insurer" has the meaning
prescribed in A.R.S. §
20-203.
7. "Foreign insurer" has the meaning
prescribed in A.R.S. §
20-204.
8. "Foreign or alien life insurer" means a
foreign or alien insurer authorized to issue life insurance policies in this
state within the meaning of A.R.S. §
20-254 or annuities within the
meaning of A.R.S. §
20-254.01, regardless of whether
the insurer is authorized to transact disability insurance in this
state.
9. "Local or regional taxes"
means any tax, license, or other obligation imposed upon domestic insurers or
their producers by any:
a. City, county, or
other political subdivision of a foreign country or other state; or
b. Combination of cities, counties, or other
political subdivisions of a foreign country or other state.
10. "Other Arizona insurer" means
a domestic insurer authorized to transact one or more lines of insurance in
this state but not authorized to transact life insurance or annuities in this
state.
11. "Other foreign or alien
insurer" means a foreign or alien insurer authorized to transact one or more
lines of insurance in this state but not authorized to transact life insurance
or annuities in this state.
12.
"Other state" means any state in the United States, the District of Columbia,
and territories or possessions of the United States, excluding
Arizona.
13. "Premium Tax and Fees
Report," includes the "Survey of Arizona Domestic Insurers" and the
"Retaliatory Taxes and Fees Worksheet," and means the form prescribed by the
Director and filed annually by insurers under A.R.S. §
20-224.
B. Scope. This Section applies to all
foreign, alien, and domestic insurers and to Premium Tax and Fees Reports filed
by all insurers.
C. Data to be
reported by domestic insurers. As a part of its Premium Tax and Fees Report,
each domestic insurer shall file a Survey of Arizona Domestic Insurers that
reports the following data for the calendar year covered by the insurer's
Premium Tax and Fees Report with respect to each foreign country or other state
in which the insurer was required to pay any local or regional taxes:
1. Total local or regional taxes paid;
and
2. Total premiums taxed under
the premium taxing statute of the foreign country or other state, as reported
by the insurer in any premium tax report filed under the laws of the foreign
country or other state.
D. Computation of statewide and foreign
countrywide additions to the rate of tax. For each foreign country or other
state having one or more local or regional taxes on domestic insurers, the
Department shall compute on a statewide or foreign countrywide basis an
addition to the rate of tax. The Department shall compute the addition to the
rate of tax payable by Arizona life insurers separately from the addition to
the rate of tax payable by other Arizona insurers. The addition to the rate of
tax payable by each category of Arizona domestic insurers shall be the quotient
of:
1. The aggregate local or regional taxes
reported as paid to the foreign country or other state by domestic insurers in
each category for the calendar year covered by the Premium Tax and Fees Report
divided by,
2. The aggregate
statewide or foreign countrywide premiums taxed under the premium taxing
statute of the other state or foreign country reported by domestic insurers in
each category for the calendar year covered by the Premium Tax and Fees
Report.
E. Publication of
additions to the rate of tax. The Department shall publish additions to the
rate of tax determined under A.R.S. §
20-230(A) and
this Section, based upon the survey information gathered from domestic insurers
for the preceding calendar year under subsection (C). The Department shall
publish the information annually on the Department web site, on or before
November 1, and in the Retaliatory Taxes and Fees Worksheet for the next year's
Premium Tax and Fees Report.
F.
Foreign and Alien Insurers' Report of the Effect of Local or Regional Taxes.
Each foreign or alien insurer domiciled in a foreign country or other state for
which the Department publishes an addition to the rate of tax shall include in
the "State or Country of Incorporation" column of its Retaliatory Taxes and
Fees Worksheet for the calendar year covered by its Premium Tax and Fees Report
an amount equal to:
1. The total premiums
received in Arizona that would be taxed under the laws of the domiciliary
jurisdiction, as reported in the "State or Country of Incorporation" column of
its premium tax and fees report multiplied by,
2. The applicable addition to the rate of tax
published by the Department for the calendar year covered by the insurer's
Premium Tax and Fees Report.
G. Contesting computation. A foreign or alien
insurer subject to this Section may preserve the right to contest the
computation of the addition to the rate of tax by submitting a notice of appeal
under A.R.S. Title 41, Chapter 6, Article 10 before or at the time the
retaliatory tax is paid. Subject to A.R.S. §
20-162, the filing of a notice of
appeal to contest the computation of the applicable addition to the rate of tax
does not relieve a foreign or alien insurer of the obligation to timely pay the
retaliatory tax, and does not stay accrual of any applicable interest and
penalties.
Notes
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