Internal Revenue Code:Sec. 4371. Imposition of tax

From TaxAlmanac

Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 34 - POLICIES ISSUED BY FOREIGN INSURERS
     

Statute

    Sec. 4371. Imposition of tax
 
      There is hereby imposed, on each policy of insurance, indemnity
    bond, annuity contract, or policy of reinsurance issued by any
    foreign insurer or reinsurer, a tax at the following rates:
      (1) Casualty insurance and indemnity bonds
        4 cents on each dollar, or fractional part thereof, of the
      premium paid on the policy of casualty insurance or the indemnity
      bond, if issued to or for, or in the name of, an insured as
      defined in section 4372(d);
      (2) Life insurance, sickness, and accident policies, and annuity
          contracts
        1 cent on each dollar, or fractional part thereof, of the
      premium paid on the policy of life, sickness, or accident
      insurance, or annuity contract; and
      (3) Reinsurance
        1 cent on each dollar, or fractional part thereof, of the
      premium paid on the policy of reinsurance covering any of the
      contracts taxable under paragraph (1) or (2).
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 521; Mar. 13, 1956, ch. 83, Sec.
    5(9), 70 Stat. 49; Pub. L. 85-859, title I, Sec. 141(a), Sept. 2,
    1958, 72 Stat. 1300; Pub. L. 86-69, Sec. 3(f)(3), June 25, 1959, 73
    Stat. 140; Pub. L. 89-44, title VIII, Sec. 804(b), June 21, 1965,
    79 Stat. 160; Pub. L. 94-455, title XIX, Sec. 1904(a)(12), Oct. 4,
    1976, 90 Stat. 1812; Pub. L. 98-369, div.  A, title II, Sec.
    211(b)(23), July 18, 1984, 98 Stat. 757; Pub. L. 100-203, title X,
    Sec. 10242(c)(3), Dec. 22, 1987, 101 Stat. 1330-423; Pub. L.
    101-239, title VII, Sec. 7811(i)(11), Dec. 19, 1989, 103 Stat.
    2411.)
 

Miscellaneous

                                 AMENDMENTS
      1989 - Par. (2). Pub. L. 101-239 struck out '', unless the
    insurer is subject to tax under section 842(b)'' after ''or annuity
    contract''.
      1987 - Par. (2). Pub. L. 100-203 substituted ''section 842(b)''
    for ''section 813''.
      1984 - Par. (2). Pub. L. 98-369 substituted ''section 813'' for
    ''section 819''.
      1976 - Pub. L. 94-455 substituted in par. (1) ''4 cents'' for
    ''four cents'' and ''premium paid'' for ''premium charged'', in
    pars. (2) and (3) ''1 cent'' for ''one cent'' and ''premium paid''
    for ''premium charged'', and struck out provision following par.
    (3) relating to computation of tax on premium paid in lieu of
    premium charged.
      1965 - Pub. L. 89-44 inserted last sentence relating to
    computation of tax on premium paid in lieu of premium charged.
      1959 - Par. (2). Pub. L. 86-69 substituted ''section 819'' for
    ''section 816''.
      1958 - Pub. L. 85-859 substituted ''is hereby imposed, on each
    policy of insurance, indemnity bond, annuity contract, or policy of
    reinsurance issued by any foreign insurer or reinsurer, a tax'' for
    ''shall be imposed a tax on each policy of insurance, indemnity
    bond, annuity contract, or policy of reinsurance issued by any
    foreign insurer or reinsurer''.
      1956 - Par. (2). Act Mar. 13, 1956, substituted ''section 816''
    for ''section 807''.
                      EFFECTIVE DATE OF 1989 AMENDMENT
      Amendment by Pub. L. 101-239 effective, except as otherwise
    provided, as if included in the provision of the Technical and
    Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such
    amendment relates, see section 7817 of Pub. L. 101-239, set out as
    a note under section 1 of this title.
                      EFFECTIVE DATE OF 1987 AMENDMENT
      Amendment by Pub. L. 100-203 applicable to taxable years
    beginning after Dec. 31, 1987, see section 10242(d) of Pub. L.
    100-203, set out as a note under section 816 of this title.
                      EFFECTIVE DATE OF 1984 AMENDMENT
      Amendment by Pub. L. 98-369 applicable to taxable years beginning
    after Dec. 31, 1983, see section 215 of Pub. L. 98-369, set out as
    an Effective Date note under section 801 of this title.
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by Pub. L. 94-455 effective on first day of first month
    which begins more than 90 days after Oct. 4, 1976, see section
    1904(d) of Pub. L. 94-455, set out as a note under section 4041 of
    this title.
                      EFFECTIVE DATE OF 1965 AMENDMENT
      Amendment by Pub. L. 89-44 applicable with respect to policies,
    bonds, and contracts with respect to which the tax imposed by this
    section is required to be paid on the basis of a return, see
    section 804(c) of Pub. L. 89-44, set out as a note under section
    4374 of this title.
                      EFFECTIVE DATE OF 1959 AMENDMENT
      Amendment by Pub. L. 86-69 applicable only with respect to
    taxable years beginning after Dec. 31, 1957, see section 4 of Pub.
    L. 86-69, set out as an Effective Date note under section 381 of
    this title.
                      EFFECTIVE DATE OF 1958 AMENDMENT
      Amendment by Pub. L. 85-859 effective on first day of first
    calendar quarter which begins more than 60 days after Sept. 2,
    1958, see section 1(c) of Pub. L. 85-859.
                      EFFECTIVE DATE OF 1956 AMENDMENT
      Amendment by act Mar. 13, 1956, applicable only to taxable years
    beginning after Dec. 31, 1954, see section 6 of act Mar. 13, 1956,
    set out as a note under section 316 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 953, 4372, 4373, 4374 of
    this title.