Notwithstanding the rate specified by Section 12202, the gross premiums tax rate paid by insurers for any premiums collected between November 8, 1988 and January 1, 1991 shall be adjusted by the Board of Equalization in January of each year so that the gross premium tax revenues collected for each prior calendar year shall be sufficient to compensate for changes in such revenues, if any, including changes in anticipated revenues, arising from this act. In calculating the necessary adjustment, the Board of Equalization shall consider the growth in premiums in the most recent three year period, and the impact of general economic factors including, but not limited to, the inflation and interest rates.
Cal. Rev. & Tax. Code § 12202.1
General
Applied in 1 court decision — leading case 48 Cal. 3d 805 - Calfarm Insurance v. Deukmejian (1989)
Most recently applied in 48 Cal. 3d 805 - Calfarm Insurance v. Deukmejian (May 1989)
Added November 8, 1988, by initiative Proposition 103, Sec. 6.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.