Rev. & Tax. Code, § 12254 · Article 5. Prepayments
Rev. & Tax. Code, § 12254
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) The amount of each prepayment shall be 25 percent of the amount of the annual insurance tax liability reported on the return of the insurer for the preceding calendar year.
(b) In establishing the prepayment amount of an insurer that has acquired the business of another insurer, the amount of tax liability of the acquiring insurer reported for the preceding calendar year shall be deemed to include the amount of tax liability of the acquired insurer reported for that year.
(c) Notwithstanding subdivision (a), for a health insurer subject to Section 12202.2 both of the following shall apply:
(1) On or after July 1, 2016, and on or before June 30, 2019, a prepayment shall not be required.
(2) The amount of each prepayment due after June 30, 2019, shall be 25 percent of the amount of what the annual insurance tax liability reported on the return of the insurer for the preceding calendar year would have been if Section 12202.2 had never been operative.
(d) This section shall become operative on July 1, 2013.
Notes and commentary — not statutory text
History
Amended by Stats. 2016, Ch. 320, Sec. 1. (AB 1625) Effective September 13, 2016.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=12254.
- Text hash
- sha256 4a7f9fe469f6e290f78e03834c7d61c99e61c436c81515c89eb3fbb21e5845e4
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Cited by 1 provision
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Revenue and Taxation Code
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