Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Insurance Policy topic
No spam. Unsubscribe anytime.
Committee hears proposal to remove $100,000 premium tax cap for certain captives
Summary
Senate Bill 60 would eliminate a $100,000 premium tax cap for series business unit captive insurance structures to align tax treatment with protected cell companies; the state auditor's office and industry representatives supported the change, saying it currently affects one company and would avoid inequitable tax treatment.
Senate Bill 60, introduced at the request of the state auditor, would remove a $100,000 premium tax cap applied to certain captive insurance entities known as series business unit structures. Sponsor Sen. Mark Noland said the change aligns premium taxation for series structures with protected cell company (PCC) structures and avoids potential legal issues arising from inequitable tax treatment.
Frank Cote, deputy insurance commissioner, told the committee the disparity currently affects one company and that the office of the Commissioner of Securities and Insurance (CSI) supports parity. John Huth of the Montana Captive Insurance Association testified the change makes the state's tax code more equitable and that the affected company is agreeable to the update.
Committee members asked for clarifications and examples about captives and their economic contribution. Cote explained captives operate as a form of self‑insurance governed under different statutes than ordinary insurance and said Montana's captive industry brings economic activity—conference business, management services and fees—into the state. The bill's proponents recommended passage to avoid inequitable treatment of substantially similar captive structures.
The hearing closed with the sponsor asking the committee to pass SB60.
What’s next: The committee closed the hearing; no roll call or amendment action was recorded in the transcript.
