Chapter 02. Retaliatory Tax

Beginning with the return for the calendar year 1967, to be filed on or before March 15, 1968, each foreign and alien insurer licensed to do business in Maryland shall prepare, as part of the annual premium tax report, an analysis in the aggregate of the applicable taxes, licenses, and other fees payable by a Maryland insurer transacting the same lines of business to any agency or department of the foreign or alien insurer’s state of domicile. An analysis, in the aggregate, shall also be prepared of all the applicable taxes, licenses, and other fees payable by the foreign or alien insurer to any agency or department of Maryland. On the basis of these analyses, the company shall compute the retaliatory tax and include the payment of the total due if any in its remittance for premium taxes, payable to the Maryland Insurance Administration on or before March 15th in each calendar year, the time fixed by statute for filing the premium tax report. A composite tax form will be made available to all affected insurers.

The Maryland Insurance Administration shall perform an audit of the retaliatory tax with its audit of the annual premium tax report and in addition shall compute and bill for any additional retaliatory tax due from companies domiciled in a state where by statute or ordinance taxes, licenses, or fees are payable to political subdivisions of that state. If the amount of retaliatory tax computed by the Maryland Insurance Administration is greater than the amount shown on the report, the excess shall be assessed by the Maryland Insurance Administration and a notice of the assessment shall be mailed to the insurance company filing the report. The assessment shall be made within 3 years from the date the report was due, except in the case of failure to file a report or of a fraudulent report, in which case the excess may be assessed at any time.

For the purpose of computing the obligations imposed by Maryland on foreign and alien insurers, payments made to the Unsatisfied Claim and Judgment Fund, the Maryland Automobile Insurance Fund, and any other Maryland special purpose fund which comes within the provisions of the retaliatory tax statute, shall be credited to the calendar year in which the payments were actually made, regardless of the premium payment year on which assessment is based.

For the purposes of this chapter, the domicile of an insurer formed under the Laws of Canada or a province of Canada shall be deemed to be that of the province in which its head office is situated. All other alien insurers shall be deemed to be domiciled in that state in which is located its principal place of business in the United States.