Form Iip - Quarterly Industrial Insurance Premium Tax Return Page 2
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2INSTRUCTIONS FOR INDUSTRIAL INSURANCE PREMIUM TAX QUARTERLY RETURN
FOR NET PREMIUM TAX INDUSTRIAL INSURANCE ONLY
Line 1. Enter the amount of taxable net direct Industrial 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.
Line 3. Enter the amount of Industrial Insurance Credit. This is the amount paid to Division of Industrial Relations during this
quarter.
Line 4. Enter the amount of Net Premium Tax. Line 2 minus Line 3.
Line 5a. Home Office Credit. 50% or .5 of Line 4. 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 taxes 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 5b. 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 5c. 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 5d. Enter the available Home Office and Ad Valorem taxes credit. Add lines 5a and 5b. Compare to line 5c. Enter the lesser
of the two.
Line 6. Enter the amount of Property/Casualty Guaranty Association credit to be used this quarter.
Line 7. Enter the amount of Net Premium Tax due. Lines 4 minus 5d minus line 6.
Line 8. 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 amount is 10%.
Number of days late
Penalty Percentage
Multiply by:
1 – 10
2%
0.02
11 – 15
4%
0.04
16 – 20
6%
0.06
21 – 30
8%
0.08
31 +
10%
0.10
Determine the number of days late the payment is, and multiply the net tax owed (Line 7) 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. The number of days late is 15 so the penalty is 4%.
Line 9. 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 calculated daily. Line 7 multiplied by .00049315068 times the number of days late.
Line 10. 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
IIP
10-08-07
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