1993 Legislative Changes Affecting the
Insurance Premium Tax
PURPOSE: This Special Notice describes amendments to the insurance premium tax made during the 1993 session of the General Assembly.
EFFECTIVE DATE: October 1, 1993.
STATUTORY AUTHORITY: 1993 Conn. Pub. Acts 361, §§3 and 4, amending Conn. Gen. Stat. §§12-205 and 12-206.
TENTATIVE RETURN NOW PERMITTED: Under Conn. Gen. Stat. §12-205, as amended by 1993 Conn. Pub. Acts 361, §3, the Commissioner is now empowered, for good cause shown, to extend the time for filing the Form 207 or Form 207F, as the case may be, if a Form 207/207F EXT is filed, together with payment of the tax reported to be due thereon, with the Department on or before March 1. Any company to which an extension is granted shall, if the tax reported to be due on its Form 207 or Form 207F is greater than the tax paid with its Form 207/207F EXT, pay interest at the rate of 1 2/3% per month or fraction thereof from March 1 until the date of payment.
EFFECT ON NEW YORK INSURERS: By reason of the retaliatory tax provisions of Conn. Gen. Stat. §12-211, the Department has had special rules for New York insurance companies that were required to file a Form 207F. The former policy was that their Form 207F was required to be accompanied by a copy of their completed Forms CT-33 (Franchise Tax Return for Insurance Corporations) and CT-33M (Metropolitan Transportation Business Tax Surcharge Return). If they were unable to file such forms on or before March 1, they were required by AUSN-379 (NEW 1/91) (Special Notice to New York Insurance Companies) to file a copy of their completed Form CT-5 (Application for Automatic Six-Month Extension for Filing Tax Report or Return) with their Form 207-F. The new policy is that, when these insurers are unable to file a completed copy of their Forms CT-33 and CT-33M on or before March 1, they must file a Form 207EXT, rather than a Form 207F. They are to file their Form 207F (obtaining extensions of time to do so, as necessary) only after they have filed their Forms CT-33 and CT-33M with the State of New York, and a copy of these completed forms must accompany their Form 207F.
RIGHT TO CLAIM REFUND EXPRESSLY ESTABLISHED: Under Conn. Gen. Stat. §12-206(f), as added by 1993 Conn. Pub. Acts 361, §4, the right to claim a refund of tax that was purportedly overpaid is expressly established. The claim must be filed in writing with the Commissioner within three years from the due date for which the purported overpayment was made and must state the specific grounds upon which it is founded.
EFFECT OF THIS DOCUMENT: A Special Notice is a document that announces a new policy or practice in response to changes in State or federal laws or regulations or to judicial decisions. A Special Notice indicates the Department's informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.
EFFECT ON OTHER DOCUMENTS: AUSN-379 (NEW 1/91) (Special Notice to New York Insurance Companies) is superseded and may no longer be relied upon after the date of issuance of this Special Notice.
Insurance premiums tax