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Committee reviews cleanup to align insurance tax provisions with practice
Summary
House Bill 7 was presented to the Senate Banking, Business Insurance, and Technology Committee as a technical cleanup to reconcile internal inconsistencies in the Delaware insurance code related to captive insurers and surplus line brokers; staff said the bill has no fiscal impact.
The Senate Banking, Business Insurance, and Technology Committee considered House Bill 7 on March 19, a technical cleanup intended to resolve internal inconsistencies in Delaware's insurance tax code.
House Bill 7, sponsored by Representative Bush and brought to the committee by staff working with Senator Spiroz Mantonioz, would revise language in the insurance code to align statutory text with long-standing tax-collection practices. Staff said the changes would remove an obsolete quarterly payment design for captive insurers and would correct an inaccurate cross-reference that currently links surplus line taxes to the wrong subsection.
Department of Insurance staff described the measure as a "cleanup bill" that was run through stakeholder engagement and said it would have no fiscal impact while ensuring the code accurately reflected collection processes that support the general fund and other special funds. "It conforms the insurance code to current and long standing practices for tax collection," staff said.
No members of the public signed up to comment on the bill, and committee members raised no substantive objections during the meeting. The committee did not record a formal vote on the bill during this hearing.
