ORS 731.828
Computation of wet marine and transportation insurance tax
(1)
Each authorized insurer transacting wet marine and transportation insurance in this state shall file annually on or before June 15 with the Director of the Department of Consumer and Business Services and in the form prescribed by the director, a report of all the items pertaining to the authorized insurer’s insurance business as enumerated and prescribed in ORS 731.824 (Tax on underwriting profits of wet marine and transportation insurers).(2)
Each authorized insurer that has written wet marine and transportation insurance in this state for three years shall furnish to the director a statement of all of the items referred to in subsection (1) of this section, in the form prescribed by the director, for each of the preceding three calendar years. An authorized insurer that has not written wet marine and transportation insurance for three years shall furnish to the director a statement of all items for each of the calendar years during which the authorized insurer has written wet marine and transportation insurance.(3)
On or before June 15 of each year, if the authorized insurer has transacted wet marine and transportation insurance for three years, the authorized insurer shall:(a)
Ascertain the average annual underwriting profit, as provided in ORS 731.824 (Tax on underwriting profits of wet marine and transportation insurers), derived by the authorized insurer from wet marine and transportation insurance business written within the United States during the last preceding three calendar years.(b)
Ascertain the proportion that the average annual premiums of the authorized insurer from wet marine and transportation insurance written by the authorized insurer in this state during the last preceding three calendar years bears to the average total of wet marine and transportation insurance premiums of the authorized insurer during the same three years.(c)
Pay five percent on this proportion of the average annual underwriting profit of the authorized insurer from wet marine and transportation insurance to the director as a tax upon the insurance written by the authorized insurer in this state during the current calendar year.(4)
The authorized insurer each year shall compute the tax, according to the method described in this section, upon the authorized insurer’s average annual underwriting profit from wet marine and transportation insurance during the preceding three years, including the current calendar year. At the expiration of each current calendar year, the profit or loss on wet marine and transportation insurance business of that year is to be added or deducted, and the profit or loss upon the insurance business of the first calendar year of the preceding three-year period is to be dropped so that the computation of underwriting profit for purposes of taxation under this section will always be on a three-year average.(5)
An authorized insurer that has not written wet marine and transportation insurance in this state for three years shall, until the authorized insurer has transacted wet marine and transportation insurance in this state for three years, be taxed on the basis of the authorized insurer’s annual underwriting profit on wet marine and transportation insurance written within the United States for the current calendar year, subject, however, to an adjustment in the tax as soon as the authorized insurer, in accordance with the provisions of this section, is enabled to compute the tax on the three-year basis.(6)
In the case of authorized mutual insurers, the authorized insurer may not include in the underwriting profit, when computing the tax prescribed by this section, the amounts refunded by the mutual insurers on account of premiums previously paid by the policyholders of the mutual insurers.(7)
If the director, during the period in which the director under ORS 731.836 (Limitation on enforcement of insurer’s tax obligations) may collect taxes owing under this section, finds the amount of taxes paid by an authorized insurer to have been incorrect, the director shall charge or credit the authorized insurer with the difference between the correct amount of tax and the amount actually paid.(8)
If an authorized insurer ceases to transact wet marine and transportation insurance in this state, the authorized insurer shall report to the director the items the authorized insurer has not previously reported pertaining to the insurance business, as enumerated and described in this section, to the date on which the authorized insurer ceased to transact wet marine and transportation insurance, and shall forthwith pay to the director the taxes computed according to this section and the annual authorization fees thereon. [Formerly 745.150; 1969 c.158 §1; 1975 c.250 §1; 1989 c.700 §7; 2019 c.493 §2]
Source:
Section 731.828 — Computation of wet marine and transportation insurance tax, https://www.oregonlegislature.gov/bills_laws/ors/ors731.html.
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