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Committee trims SB890: moratorium removed, MIA ordered to study captive insurance
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Summary
SB890’s committee amendments removed a proposed moratorium on an insurance premium receipts tax for captive insurance used by nonprofits and instead require a Maryland Insurance Administration study with an accelerated deadline; the bill moved favorable as amended, with at least one recorded opposition.
The Ways and Means Committee on April 9 amended Senate Bill 890 to remove a proposed two‑year moratorium on collecting the insurance premium receipts tax on certain captive insurance procured by nonprofit entities and to instead require the Maryland Insurance Administration (MIA) to study the use, regulation and taxation of captive insurance companies. Del. Polakovich Carr presented the amendment, describing the change and the shift from moratorium to study.
Polakovich Carr told the committee the amendments "strike the proposed insurance premium tax moratorium and slightly alter the contents of the required study and move up the date by which MIA must complete it." Delegate Buckle asked whether the amended bill remained silent on back tax liabilities for the affected entities; a committee member (Polakovich Carr) confirmed the bill is now "just the study" and that any interpretation regarding back tax liabilities would be left to existing law.
The committee adopted the amendments and moved SB890 favorable as amended. The transcript records a recorded opposition by Delia Miller on the final motion; no further roll‑call tallies are provided in the excerpt. The amendments direct MIA to complete the study and report by the revised date recorded in committee.
