1. (a) Except as provided in subsection (b) of this section, a health maintenance organization is not exempted from any State, county, or local taxes solely because of this subtitle.

2. (b)

   1. (1) A nonprofit health maintenance organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code is not subject to the insurance premium tax under Title 6, Subtitle 1 of the Insurance Article.

   2. (2) Premiums received by an insurer under policies that provide health maintenance organization benefits are not subject to the premium tax imposed under Title 6, Subtitle 1 of the Insurance Article to the extent:

      1. (i) Of the amounts actually paid by the insurer to a nonprofit health maintenance organization that operates only as a health maintenance organization; or
      2. (ii) The premiums have been paid by that nonprofit health maintenance organization.

Added by Acts 1982, c. 21, § 2, eff. July 1, 1982. Amended by Acts 1988, c. 110, § 1, eff. Jan. 1, 1989; Acts 1997, c. 70, § 4, eff. Oct. 1, 1997; Acts 2004, 1st Sp. Sess., c. 5, § 1, eff. Jan. 11, 2005; Acts 2005, c. 280, § 2, eff. July 1, 2005; Acts 2005, c. 444, § 1, eff. July 1, 2005.

Formerly Art. 43, § 856.