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Committee advances overhaul of certain insurance premium tax credits, sets flat property‑casualty rate and a rate floor
Summary
Lawmakers approved amendments to HB594 that establish a flat property‑casualty premium tax rate and phase out select investment‑based premium tax reductions; the measure excludes life and health lines and includes a trigger tied to collections to reduce rates further subject to a floor.
The committee reported House Bill 594 favorably with amendments that simplify and restructure parts of the insurance premium tax code for property and casualty insurers while leaving life, health and accident lines unchanged.
Committee amendments set a flat premium tax rate for property and casualty insurers and added a trigger mechanism that would reduce the rate automatically if collections exceed a fixed threshold. The amendment also set a rate floor (committee language established a 1% minimum rate) to prevent unlimited reductions. Members and staff worked with Department of Revenue and industry representatives to clarify language and to phase out certain investment‑based premium tax reductions over a defined schedule.
Sponsors noted the proposal is tied to another pending measure that affects how the state would absorb fiscal impacts; the committee record shows staff and the sponsor agreed to coordinate with the related bill and to revisit language if the companion measure does not pass. Industry, revenue and fiscal staff were acknowledged for extensive technical work on the amendments.
Committee members adopted the amendments and reported HB594 favorably as amended.
