H.B. 753

VETOES

6-102.

(b) Premiums to be taxed include:

(1)     the consideration for a surety contract, guaranty contract, or annuity
contract;

(2)      SUBSCRIPTION CHARGES OR OTHER AMOUNTS PAID TO A HEALTH
MAINTENANCE ORGANIZATION ON A PREDETERMINED PERIODIC RATE BASIS BY A
PERSON OTHER THAN A PERSON SUBJECT TO THE TAX UNDER THIS SUBTITLE AS
COMPENSATION FOR PROVIDING HEALTH CARE SERVICES TO MEMBERS;

(3)      GROSS RECEIPTS RECEIVED AS A RESULT OF CAPITATION
PAYMENTS, INCLUDING SUPPLEMENTAL OR BONUS PAYMENTS, MADE TO A
MANAGED CARE ORGANIZATION FOR PROVIDER SERVICES TO AN INDIVIDUAL WHO
IS ENROLLED IN A MANAGED CARE ORGANIZATION;

[(2)] (4) dividends on life insurance policies that have been applied to
buy additional insurance or to shorten the period during which a premium is payable;
and

[(3)] (5) the part of the gross receipts of a title insurer that is derived
from insurance business or guaranty business.

6-103.

The tax rate is:

(1)     0% for premiums for annuities; and

(2)     2% for all other premiums; INCLUDING:

(I)      SUBSCRIPTION CHARGES OR OTHER AMOUNTS PAID TO A
HEALTH MAINTENANCE ORGANIZATION; AND

(II)     GROSS RECEIPTS RECEIVED AS A RESULT OF CAPITATION
PAYMENTS, INCLUDING SUPPLEMENTAL OR BONUS PAYMENTS, MADE TO A
MANAGED CARE ORGANIZATION.

6-104.

(a) Subject to subsection (b) of this section, in computing the tax under this
section, the following deductions from gross direct premiums allocable to the State
are allowed:

(1)     returned premiums, not including surrender values;

(2)     dividends that are:

(i) paid or credited to policyholders; or

(ii) applied to buy additional insurance or to shorten the period
during which premiums are payable; AND

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