LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 21, 2013 TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2972 by King, Ken (Relating to exempting premiums for policies covering stored or in-transit baled cotton from certain taxes.), As Introduced To the extent that the bill's provisions would reduce the amount of premiums subject to the tax, there would be an indeterminate revenue loss to the State. The bill would amend Chapters 225 (surplus lines insurance premium tax) and 226 (unauthorized and independently procured insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines, independently procured, and unauthorized insurance premium taxes. Surplus lines, independently procured, and unauthorized insurance premiums are taxed at a rate of 4.85 percent. To the extent that this bill's provisions would reduce the amount of premiums subject to the tax, tax revenues would decrease. The Comptroller of Public Accounts reports the amount of that decrease, however, cannot be determined. The bill would take effect January 1, 2014. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:304 Comptroller of Public Accounts, 454 Department of Insurance LBB Staff: UP, KK, SD, AG, ER
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 21, 2013
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2972 by King, Ken (Relating to exempting premiums for policies covering stored or in-transit baled cotton from certain taxes.), As Introduced
TO: Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2972 by King, Ken (Relating to exempting premiums for policies covering stored or in-transit baled cotton from certain taxes.), As Introduced
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2972 by King, Ken (Relating to exempting premiums for policies covering stored or in-transit baled cotton from certain taxes.), As Introduced
HB2972 by King, Ken (Relating to exempting premiums for policies covering stored or in-transit baled cotton from certain taxes.), As Introduced
To the extent that the bill's provisions would reduce the amount of premiums subject to the tax, there would be an indeterminate revenue loss to the State.
To the extent that the bill's provisions would reduce the amount of premiums subject to the tax, there would be an indeterminate revenue loss to the State.
The bill would amend Chapters 225 (surplus lines insurance premium tax) and 226 (unauthorized and independently procured insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines, independently procured, and unauthorized insurance premium taxes. Surplus lines, independently procured, and unauthorized insurance premiums are taxed at a rate of 4.85 percent. To the extent that this bill's provisions would reduce the amount of premiums subject to the tax, tax revenues would decrease. The Comptroller of Public Accounts reports the amount of that decrease, however, cannot be determined. The bill would take effect January 1, 2014.
The bill would amend Chapters 225 (surplus lines insurance premium tax) and 226 (unauthorized and independently procured insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines, independently procured, and unauthorized insurance premium taxes.
Surplus lines, independently procured, and unauthorized insurance premiums are taxed at a rate of 4.85 percent. To the extent that this bill's provisions would reduce the amount of premiums subject to the tax, tax revenues would decrease. The Comptroller of Public Accounts reports the amount of that decrease, however, cannot be determined.
The bill would take effect January 1, 2014.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 454 Department of Insurance
304 Comptroller of Public Accounts, 454 Department of Insurance
LBB Staff: UP, KK, SD, AG, ER
UP, KK, SD, AG, ER