Louisiana Senate Bill SB321

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Refer: 4/7/10
• Report Pass: 4/14/10
• Engrossed: 4/19/10
• Refer: 4/20/10
• Report Pass: 5/19/10

Caption

Provides for the evidence by which certificates of deposit and cash deposits may show that they are "qualifying Louisiana investments" for purposes of reducing insurance premium tax. (7/1/10) (EGF INCREASE GF RV See Note)

Impact

If enacted, SB321 will have a direct impact on the way Louisiana evaluates insurers' investment portfolios for tax reduction purposes. By specifying that evidence of qualifying investments can be demonstrated through simple methods such as deposit receipts or bank statements, the result will likely be greater transparency and ease of compliance for insurance companies. This, in turn, could encourage more financial activity within the state, increasing local banking transactions and investments, thus contributing positively to the state's economy.

Summary

Senate Bill 321 seeks to amend existing legislation related to the insurance premium tax in Louisiana by clarifying the requirements for what constitutes 'qualifying Louisiana investments'. Specifically, the bill focuses on the evidence required for certificates of deposit and cash deposits as qualifying investments that enable insurers to reduce their insurance premium tax obligations. The new legislation aims to simplify the documentation process for financial institutions operating within the state, which is a proactive measure to support local investment.

Sentiment

The sentiment surrounding SB321 appears to be largely favorable among financial institutions and insurance companies, who view the bill as a step towards fostering more robust economic activity in Louisiana. Supporters of the bill argue that streamlining the qualifications for tax relief will incentivize insurers to invest more in local certificates of deposit, thereby keeping capital within the state. However, some concerns may arise regarding potential over-reliance on such tax reductions by the state, which could result in lower tax revenues overall.

Contention

One notable point of contention might arise over the definition of 'qualifying investments' and the criteria necessary to meet these definitions. While insurers may welcome the simplification in evidence requirements, there might be discussions about maintaining sufficient regulatory oversight and ensuring that the definition remains stringent enough to protect the state's economic interests. As local stakeholders engage in deliberations on the bill, it will be crucial to balance the interests of economic development with responsible governance.