An Act Exempting Municipal Insurance Contracts And Policies From The Insurance Premium Tax.
Impact
If enacted, the bill would amend section 12-202 of the general statutes, establishing a clear exemption for municipal insurance contracts from the standard premium tax that is generally applied to insurance policies. This change could significantly lower the operational costs related to health insurance for municipalities, which is particularly relevant in the context of increasing healthcare expenses. Local governments would potentially be able to offer better health benefits to employees without incurring higher insurance costs.
Summary
House Bill 05172 proposes to exempt municipal insurance contracts and policies from the insurance premium tax. The intention behind this bill is to alleviate financial burdens on towns and cities, particularly in regards to the rising costs of health insurance. By providing this exemption, the bill aims to enhance the financial flexibility of local governments, potentially allowing them to allocate more resources towards public services and community needs.
Contention
There may be points of contention surrounding this bill, particularly regarding its fiscal impact on the state's budget. Critics could argue that exempting municipal insurance contracts from the premium tax could lead to diminished revenue for state funding, which is often reliant on tax income from various sources including insurance premiums. Supporters, however, may emphasize the necessity of such a measure to support local governments and ensure that essential services are not compromised by financial constraints.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.