This chapter applies to any person who is subject to the taxation of premiums in the State under Insurance Article, §§6-101 and 6-102.1, Annotated Code of Maryland. Each taxpayer subject to premium tax under Insurance Article, §6-101, Annotated Code of Maryland, shall declare an estimated annual tax if the taxpayer’s total tax for the current tax year is reasonably expected to exceed $1,000. The declaration of estimated annual tax shall be: Filed with the Insurance Administration, on a form or in a manner approved by the Commissioner, on or before April 15 of the tax year; and A reasonable estimate of the expected annual tax liability for that year. The taxpayer shall pay to the Insurance Administration at least 25 percent of the estimated annual tax liability at the time the declaration of annual tax is filed, on or before April 15 of the tax year. Thereafter, the taxpayer shall file a quarterly payment report with the Insurance Administration, on a form or in a manner approved by the Commissioner, and pay to the Insurance Administration at least 25 percent of the estimated annual tax each quarter, on or before June 15, September 15, and December 15 of the tax year. A reasonable estimate of the annual tax shall be either: 100 percent of premium tax liability for the prior year as shown on the prior year's Final Report on the line stating “Premium Tax Due — Entire Calendar Year”; or 90 percent of the amount of the current year tax liability. On or before March 15 following the end of the tax year, a person subject to premium tax shall file a Final Report with the Insurance Administration on a form or in a manner approved by the Commissioner. The Final Report of premium taxes required under Insurance Article, §6-107, Annotated Code of Maryland, shall contain: Either: A report of the new and renewal gross direct premiums less returned premiums written by the taxpayer during the preceding calendar year, including, for Maryland domiciled taxpayers, premiums written in a state where the taxpayer is not licensed; or If the taxpayer issues perpetual policies of fire insurance, a report of the average amount of deposits held by the taxpayer during the preceding calendar year in connection with perpetual policies of fire insurance issued on property in the State and in force during any part of that year; A calculation of retaliatory tax owed to Maryland under COMAR 31.06.02; A calculation of any applicable credits against premium tax allowed by Insurance Article, Title 6, Annotated Code of Maryland; and Credit, if any, for overpayment of premium tax paid in prior tax years. On or before March 15 following the end of the tax year, the Assessment Form shall be filed to report the assessment amount pursuant to Insurance Article, §6-102.1, Annotated Code of Maryland, and shall contain: A report of the gross amount of all health and accident & health insurance premiums written during the preceding calendar year; An itemization of allowed excluded premiums during the preceding calendar year; A calculation of the assessment; and Any other information or documentation required by the Commissioner. Remittance. The taxpayer shall remit the following with the Final Report required by §B of this regulation: The total amount of premium tax due, after crediting the amount of taxes paid under Regulation .02 of this chapter; and Any retaliatory tax due under COMAR 31.06.02. The amount remitted under §C(1) of this regulation shall be the net amount due after any applicable credits are applied against the premium tax that are allowed by Insurance Article, Title 6, Annotated Code of Maryland. Taxpayers shall maintain in their files, and shall make available to the Commissioner on request, supporting documentation for: The retaliatory tax due on the Final Report, consisting of the applicable taxes, licenses, and other fees that are part of the computation of the retaliatory tax due; and Any credits against premium tax taken by the taxpayer that are allowed under Insurance Article, Title 6, Annotated Code of Maryland. An entity subject to assessment pursuant to Insurance Article, §6-102.1, Annotated Code of Maryland, shall remit the assessment amount due with the Assessment Form as required by §C of this regulation. The payment of premium taxes as required by §D(1) of this regulation and the payment of the assessment as required by §D(4) of this regulation shall be remitted separately and not combined in one remittance. A managed care organization may remit quarterly payments of the assessment required by Insurance Article, §6-102.1, Annotated Code of Maryland, equal to at least 25 percent of the assessment due on or before March 15, June 15, September 15, and December 15. Each taxpayer is subject to the assessment of a penalty of 5 percent of the amount not paid when due and interest at the rate specified in Tax-General Article, §13-604(b)(1), Annotated Code of Maryland, from the date the tax was due until payment is made to the Commissioner when the taxpayer fails to remit or remits less than: The amount due with: The declaration of estimated annual tax in accordance with Regulation .02C of this chapter; or Each quarterly payment report in accordance with Regulation .02D of this chapter; or The total premium tax due to be paid with the Final Report in accordance with Regulation .03 of this chapter. Notwithstanding §A(1) of this regulation, the Commissioner may not assess a penalty or interest under §A(1) if: The taxpayer's declaration of estimated annual tax is at least 90 percent of the premium liability for the current year or 100 percent of the premium tax liability due for the prior tax year as shown on the Final Report on the line stating “Premium Tax Due—Entire Calendar Year”; and The taxpayer pays at least 25 percent of the estimated annual tax on or before April 15, June 15, September 15, and December 15 of the tax year. Interest will be assessed at the rate of 6 percent per year from the due date of the Final Report until payment is made to the Commissioner if, following an audit by the Commissioner, an additional amount of premium tax is found to be due. Penalties for Failure to Pay Retaliatory Tax. The Commissioner shall assess a penalty of 5 percent of the amount not paid when due and interest at the rate specified in Tax-General Article, §13-604(b)(1), Annotated Code of Maryland, if the taxpayer fails to pay the retaliatory tax under COMAR 31.06.02 within 30 days after the Commissioner issues a notice to the taxpayer specifying the amount due. The penalty and interest imposed under §D(1) of this regulation shall be from the 31st day after the Commissioner issues the notice until the tax is paid to the Commissioner. Notwithstanding §A, B, C, or D of this regulation, the Commissioner may not impose a penalty or interest if the total amount of the interest and penalty is less than $20. Insurance Article, §§2-109, 6-101—6-103, and 6-106—6-109, Annotated Code of Maryland Effective date: September 17, 2001 (28:18 Md. R. 1622) Regulation .01 amended effective January 13, 2020 (47:1 Md. R. 19) Regulation .02A amended effective January 13, 2020 (47:1 Md. R. 19) Regulation .03 amended effective January 13, 2020 (47:1 Md. R. 19) Regulation .04A amended effective August 15, 2016 (43:16 Md. R. 901)