LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION May 13, 2013 TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2972 by King, Ken (Relating to exempting premiums for certain insurance covering stored or in-transit baled cotton from surplus lines insurance premium taxes.), As Engrossed 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 Chapter 225 (surplus lines insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines insurance premium taxes. Surplus lines 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
May 13, 2013
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2972 by King, Ken (Relating to exempting premiums for certain insurance covering stored or in-transit baled cotton from surplus lines insurance premium taxes.), As Engrossed
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2972 by King, Ken (Relating to exempting premiums for certain insurance covering stored or in-transit baled cotton from surplus lines insurance premium taxes.), As Engrossed
Honorable Tommy Williams, Chair, Senate Committee on Finance
Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2972 by King, Ken (Relating to exempting premiums for certain insurance covering stored or in-transit baled cotton from surplus lines insurance premium taxes.), As Engrossed
HB2972 by King, Ken (Relating to exempting premiums for certain insurance covering stored or in-transit baled cotton from surplus lines insurance premium taxes.), As Engrossed
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 Chapter 225 (surplus lines insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines insurance premium taxes. Surplus lines 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 Chapter 225 (surplus lines insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines insurance premium taxes.
Surplus lines 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