Calif. court eyes insurer tax. (California Supreme Court)

National Underwriter Property & Casualty-Risk & Benefits Management, April, 1989 by Haggerty, Alfred G.

Calif. Court Eyes Insurer Tax The California Supreme Court has agreed to decide whether insurance companies are subject to state and local taxes on their investments despite a provision in the state constitution which appears to grant an exemption. The city of Los Angeles is appealing a ruling that Section 28 of the California Constitution exempts insurers from all local taxes except for property taxes.

The section says the 2.35 percent gross premium tax is "in lieu o& all other taxes and licenses, state, county, and municipal." The ruling came first in Los Angeles County Superior Court and was upheld last December by the California Court of Appeal in Los Angeles. The case has "much, much less effect on property and casualty insurers than on life...

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