Minnesota Senate Bill SF3163

Minnesota 2023-2024 Regular Session

• Introduced: 3/27/23
• Refer: 3/27/23

Caption

Modifying the definition of gross premiums

Impact

The proposed changes in SF3163 are expected to have significant implications on how insurance providers calculate and report premiums for taxation purposes. The clarity brought by the bill will likely improve compliance among insurers and facilitate the tax collection process by the state. This also means that insurance policyholders may see changes in how their premiums are evaluated tax-wise, affecting both their costs and the revenue generated for state tax purposes.

Summary

SF3163 is a legislative bill introduced in Minnesota that aims to amend the definition of 'gross premiums' as outlined in the Minnesota Statutes 2022. The bill specifies that gross premiums will encompass total premiums paid by policyholders and applicants on various insurance policies, while also clarifying what constitutes exclusions from this definition. Notably, the amendment attempts to streamline and clarify the tax obligations of insurance policyholders, ensuring that gross premiums are accurately defined without ambiguity in the law.

Contention

Despite its potential benefits, the bill has garnered some points of contention among industry stakeholders. Concerns have been raised regarding the inclusion of bail bond agents and title insurance in the definition of gross premiums. Some advocates believe that this change could lead to increased costs for these services, adversely affecting consumers who rely on bail bonds or title insurance, particularly in areas where affordability is a concern. The dialogue around the bill may reflect a broader debate about balancing regulatory clarity and consumer protections.