PARRIS N. GLENDENING, Governor

Ch. 36

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 636(a) and 637(a).

In subsection (a) of this section, the reference to a "person" subject to
taxation is substituted for the former reference to an "insurance company" to
conform to § 6-101 of this title.

In subsection (a)(2) of this section, the former phrase "herein required to be
filed", which modified "report", is deleted as surplusage. Similarly, the former
phrase "at the time fixed for filing the report" is deleted as surplusage.

Defined terms: "Commissioner" § 1-101
"Person" § 1-101
"Premium" § 1-101

6-108. PENALTY AND INTEREST.

(A)     PENALTY FOR FAILURE TO PAY TAX.

A TAX NOT PAID WHEN A REPORT OR DECLARATION IS DUE TO BE FILED IS
SUBJECT TO A PENALTY OF 5% AND INTEREST AT THE RATE DETERMINED UNDER §
13-604(B)(1) OF THE TAX - GENERAL ARTICLE FROM THE DATE THAT THE REPORT
OR DECLARATION WAS DUE.

(B)     INTEREST ON ADDITIONAL AMOUNTS DUE.

IF AN ADDITIONAL AMOUNT IS FOUND TO BE DUE AFTER A REPORT OR
DECLARATION HAS BEEN FILED, THE ADDITIONAL AMOUNT IS SUBJECT TO
INTEREST AT 6% PER YEAR FROM THE DUE DATE OF THE REPORT OR
DECLARATION UNTIL PAYMENT IS MADE TO THE COMMISSIONER.

(C)     PAYMENT DUE IN IMMEDIATELY AVAILABLE FUNDS.

(1)      SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, IF AN INSURER
THAT IS REQUIRED UNDER § 2-113 OF THIS ARTICLE TO PAY A PREMIUM TAX ON OR
BEFORE THE DUE DATE IN IMMEDIATELY AVAILABLE FUNDS FAILS TO DO SO, THE
COMMISSIONER SHALL ASSESS A PENALTY AND INTEREST AS PROVIDED IN
SUBSECTION (A) OF THIS SECTION ON THE UNPAID TAX FROM THE DATE THE TAX IS
DUE TO THE DATE ON WHICH THE FUNDS FROM THE TAX PAYMENT BECOME
AVAILABLE TO THE STATE.

(2)      THE COMMISSIONER MAY WAIVE THE PENALTY AND INTEREST ON
LATE PAYMENTS UNDER THIS SUBSECTION IF THE INSURER PROVES THAT IT:

(I)       MADE A GOOD FAITH EFFORT TO COMPLY WITH THE
REQUIREMENTS OF § 2-113 OF THIS ARTICLE; AND

(II)     EXERCISED DUE DILIGENCE TO INITIATE PAYMENT
CORRECTLY AND ON A TIMELY BASIS.

(3)      THIS SUBSECTION DOES NOT AFFECT ANY OTHER REQUIREMENT OF
LAW FOR THE PAYMENT OF PREMIUM TAXES OR LICENSING FEES BY AN INSURER.

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