A bill for an act relating to the insurance premium tax rates on the gross amount of premiums received by an insurance company.
Impact
The amendment to the tax rate is intended to stimulate the insurance sector by reducing costs associated with premium taxes. Lowering the tax on insurance premiums could encourage more competitive pricing in the insurance market, which may ultimately benefit consumers by making insurance products more affordable. However, this reduction in revenue from insurance taxes could have implications for state funding, especially as these taxes contribute to the state budget and finance various public services.
Summary
House Study Bill 121 (HSB121) proposes amendments to the insurance premium tax rates applied to the gross amount of premiums received by insurance companies. This bill specifically reduces the insurance premium tax rate from one percent to nine-tenths of one percent for the calendar year 2024 and subsequent years. This change aims to lighten the tax burden on insurance providers, potentially affecting their overall operational costs and pricing strategies for consumers.
Contention
While proponents of HSB121 argue that the tax cut will foster growth within the insurance industry and make it easier for companies to pass on savings to consumers, there are concerns regarding the impact on state revenues. Critics may question whether this reduction is sustainable in the long-term and highlight the possible need to compensate for the loss in tax revenue by increasing other taxes or cutting services, which could lead to significant public pushback. Hence, the bill may face debate concerning balancing the needs of the insurance sector with the fiscal responsibilities of the state.
A bill for an act relating to individual and corporate income taxes, the insurance premium tax, and including the contingent repeal of the individual income tax, and including effective date provisions.(See SF 552.)
A bill for an act relating to individual and corporate income taxes, the insurance premium tax, and including the contingent repeal of the individual income tax, and including retroactive applicability and effective date provisions.(Formerly SSB 1126.)
Reducing insurance company premium tax rates and discontinuing remittance and crediting of a portion of the premium tax to the insurance department service regulation fund.
Establishes a flat rate of insurance premium tax and provides relative to certain insurance premium tax credits and exemptions (RR SEE FISC NOTE GF RV)
Requires insurance premium finance companies to cooperate with the Department of Insurance when insurance premiums are paid by an insurance premium finance company. (8/1/15)
A bill for an act relating to the Hoover presidential library tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.(See HF 703.)
Personal income tax: voluntary contributions: California Breast Cancer Research Voluntary Tax Contribution Fund and California Cancer Research Voluntary Tax Contribution Fund.
Juveniles: other; default maximum time for a juvenile to complete the terms of a consent calendar case plan; increase to 6 months. Amends sec. 2f, ch. XIIA of 1939 PA 288 (MCL 712A.2f).
Courts: family division; use of screening tool for minors sought to be placed on the consent calendar; require. Amends sec. 2f, ch. XIIA of 1939 PA 288 (MCL 712A.2f). TIE BAR WITH: SB 0418'23