Form Ipt - Quarterly Insurance Premium Tax Return (Page 2 of 2) in pdf

INSTRUCTIONS FOR INSURANCE PREMIUM TAX QUARTERLY RETURN

FOR NET PEMIUM TAX INSURANCE

DO NOT INCLUDE INDUSTRIAL INSURANCE

Line 1. Enter the amount of taxable net direct Insurance premiums written and net considerations received this quarter.

Line 2.Enter the amount of Gross Premium Tax. Multiply Line 1 by 3.5% or .035 OR if a qualified risk retention group by 2% or .02.

Line 3a. Home Office Credit. 50% or .5 of Line 2. NRS 680B.050 provides that insurers who maintain a “home” or “regional” office may be entitled to

a credit against tax to be paid. It provides for a 50 percent credit for tax due. Each insurer claiming a home or regional home office credit must have a

certified copy of the deed to the property in the name of the insurer on file with the Department.

Line 3b. Enter the amount of Ad Valorem Taxes paid this quarter. NRS 680B.050(1) provides for credit for ad valorem taxes actually paid upon the

home office or regional home office together with the land, as reasonably required for the convenient use of the office, upon which the home office or

regional home office is situated. Further, the insurer must provide certified copies of the billing by local authorities for the ad valorem taxes in addition to

a receipt for proof of payment.

Line 3c. Enter max credit allowed. Multiply Line 2 by 80% or .80. NRS 680B.050(1) imposes a limit on the total amount of the credit that may be

obtained. The credits may not reduce the total amount of taxes payable to less than 20 percent of the amount of gross premium taxes payable.

Line 3d. Enter the available Home Office and Ad Valorem taxes credit. Add lines 3a and 3b. Compare to line 3c. Enter the lesser of the two.

Line 4. Enter the net premium tax Line 2 minus Line 3d.

Line 5. Enter Life/Health Guaranty Association Offset. This line is to be completed on the 4

quarter return only.

Line 6. Enter the amount of Property/Casualty Guaranty Association credit to be used this quarter.

Line 7. Enter amount due to you for overpayment made in prior reporting periods for which you have received a Department of Taxation credit notice.

Monthly notices received from the Department are not cumulative. Do not take the credit if you have applied for a refund. NOTE: Only credits

established by the Department may be used.

Line 8. Enter the amount of net Premium Tax due. Line 4 minus lines 5 through 7.

Line 9. If this return is not submitted/postmarked and taxes are not paid on or before the due date as shown on the face of this return, the amount of

penalty due is a) For returns with Period(s) Ending prior to and including 3/31/07 the Penalty is 10%; b) For returns with Period(s) ending 4/30/07 and

after; the amount of penalty due is based on the number of days the payment is late per NAC 360.395 (see table below). The maximum penalty is 10%.

Number of days late

Penalty Percentage

Multiply by:

1 - 10

0.02

11 - 15

0.04

16 - 20

0.06

21- 30

0.08

31 +

10%

0.10

Determine the number of days late the payment is, and multiply the net tax owed (Line 8) by the appropriate rate based on the table above. The result is

the amount of penalty that should be entered. For Example, the taxes were due January 31, but not paid until February 15 so the penalty is 4%.

Line 10. If this return will not be postmarked and the taxes paid on or before the due date as shown on the face of this return, interest will be calculated

daily. Line 8 multiplied by .00049315068 times the number of days late.

Line 11. Enter the total amount paid with this return.

If you have questions concerning this return, please call the Insurance Tax Examiner at 775-684-2128.

Insurance

IPT

10-08-07