SECTIONS 1530-1531

1530.  In lieu of all other taxes, licenses or fees whatever, stateor local, each exchange and its corporate attorney in fact consideredas a single unit shall together pay annually on account of thetransaction of such business in this state, the same fees as are paidby mutual insurers transacting the same kind of business, and theannual tax imposed by Section 28 of Article XIII of the Constitutionof the State of California and by the applicable provisions of theRevenue and Taxation Code, except that each corporate attorney infact of a reciprocal or interinsurance exchange shall be subject toall taxes imposed upon other corporations doing business in thestate, other than taxes directly attributable to property usedexclusively in or on income derived from its principal business ascorporate attorney in fact. In any event, such corporate attorney infact shall file an annual return and pay the minimum tax provided forby Section 23151 of the Bank and Corporation Tax Law. For thepurposes of Section 12221 of the Revenue and Taxation Code, the termgross premiums, as applied to reciprocal or interinsurance exchanges,includes all sums paid by subscribers in this state by reason of theinsurance exchange, whether termed premium deposit, membership fee,or otherwise, after deducting therefrom premium deposit returns orcancellations, and all amounts returned to subscribers or credited totheir accounts as savings, but does not include such sums receivedfor reinsurance and for ocean marine insurance. A corporate attorney in fact of each exchange shall annuallycompute the amount of tax that would be payable by it under theprovisions of the Bank and Corporation Tax Law (Part 11 (commencingwith Section 23001) of Division 2 of the Revenue and Taxation Code)except for the provisions of this section, and any management fee duefrom each exchange to its corporate attorney in fact shall bereduced pro tanto by a sum equivalent to the amount so computed.1531.  (a) On and after January 1, 1994, and before January 1, 1995,every exchange and its corporate attorney in fact that is considereda single unit whose annual taxes exceed fifty thousand dollars($50,000) shall make payment by electronic funds transfer. On andafter January 1, 1995, every exchange and its corporate attorney infact that is considered a single unit whose annual taxes exceedtwenty thousand dollars ($20,000) shall make payment by electronicfunds transfer. The exchange and its corporate attorney in factconsidered as a single unit shall choose one of the acceptablemethods described in Section 45 for completing the electronic fundstransfer. (b) Payment is deemed complete on the date the electronic fundstransfer is initiated, if settlement to the state's demand accountoccurs on or before the banking day following the date the transferis initiated. If settlement to the state's demand account does notoccur on or before the banking day following the date the transfer isinitiated, payment is deemed to occur on the date settlement occurs. (c) (1) Any exchange and its corporate attorney in fact consideredas a single unit required to remit taxes by electronic fundstransfer pursuant to this section who remits those taxes by meansother than an appropriate electronic funds transfer, shall beassessed a penalty in an amount equal to 10 percent of the taxes dueat the time of the payment. (2) If the department finds that the failure of an exchange andits corporate attorney in fact, considered as a single unit, to makepayment by an appropriate electronic funds transfer in accordancewith subdivision (a) is due to reasonable cause or circumstancesbeyond the exchange's and its corporate attorney in fact's control,and occurred notwithstanding the exercise of ordinary care and in theabsence of willful neglect, that exchange and its corporate attorneyin fact shall be relieved of the penalty provided in paragraph (1). (3) Any exchange and its corporate attorney in fact seeking to berelieved of the penalty provided in paragraph (1) shall file with thedepartment a statement under penalty of perjury setting forth thefacts upon which the claim for relief is based.