ORS 731.854
Retaliatory tax
(1)
When by or pursuant to the laws of any other state or foreign country any taxes, licenses and other fees, in the aggregate, and any fines, penalties, deposit requirements or other material obligations, prohibitions or restrictions are or would be imposed upon insurers domiciled in this state, or upon the insurance producers or representatives of such insurers, which are in excess of such taxes, licenses and other fees, in the aggregate, or which are in excess of the fines, penalties, deposit requirements or other obligations, prohibitions, or restrictions directly imposed upon similar insurers, or upon the insurance producers or representatives of such insurers, of such other state or country under the statutes of this state, so long as such laws of such other state or country continue in force or are so applied, the same taxes, licenses and other fees, in the aggregate, or fines, penalties or deposit requirements or other material obligations, prohibitions, or restrictions of whatever kind shall be imposed by the Director of the Department of Consumer and Business Services upon the insurers, or upon the insurance producers or representatives of such insurers, of such other state or country doing business or seeking to do business in this state. Any tax, license or other fee or other obligation imposed by any city, county, or other political subdivision or agency of such other state or country on insurers domiciled in this state or their insurance producers or representatives shall be deemed to be imposed by such state or country within the meaning of this subsection.(2)
Foreign reciprocal or interinsurance exchanges filing a consolidated return for purposes of ORS chapter 317 shall prepare and file a separate individual retaliatory tax calculation. The excise tax for the consolidated group shall be allocated for retaliatory tax purposes among the individual foreign insurers writing Oregon premiums. The allocation, after excluding the domestic share as determined by the Director of the Department of Consumer and Business Services by rule, shall be in the proportion that the premiums written in Oregon by a foreign insurer of the group bears to the total premiums written in Oregon by all foreign insurers in the group writing premiums in Oregon.(3)
This section does not apply as to personal income taxes, nor as to local ad valorem taxes on real or personal property nor as to special purpose obligations or assessments heretofore imposed by another state in connection with particular classes of insurance, other than property insurance; except that deductions, from premium taxes or other taxes otherwise payable, allowed on account of real estate or personal property taxes paid shall be taken into consideration by the director in determining the propriety and extent of retaliatory action under this section.(4)
For the purpose of applying this section to an alien insurer, its domicile shall be determined in accordance with ORS 731.092 (“Domicile.”) and 731.096 (“Domicile of alien insurer.”).(5)
For the purpose of applying this section to foreign and alien insurers, the following specifically shall be treated as taxes imposed by this state:(a)
The corporate excise tax imposed under ORS chapter 317, without taking into consideration the amount of any reduction due to the credit allowed under ORS 315.533 (Qualified equity investments).(b)
The assessments imposed under ORS 731.804 (Assessments) made to support the legislatively authorized budget of the Department of Consumer and Business Services with respect to the functions of the department under the Insurance Code.(c)
The assessments paid by insurers on behalf of their insureds under ORS 656.612 (Assessments for department activities). [Formerly 736.237; 1995 c.786 §7a; 2003 c.364 §80; 2013 c.744 §4]
Source:
Section 731.854 — Retaliatory tax, https://www.oregonlegislature.gov/bills_laws/ors/ors731.html.
Notes of Decisions
Where California exempted insurance companies from payment of personal property taxes, California insurance company was not entitled to credit against Oregon Retaliatory Tax for personal property taxes paid by it to political subdivisions in Oregon. Transamerica Title Insurance Co. v. Insurance Div., 45 Or App 943, 609 P2d 884 (1980), Sup Ct review denied
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