Henderson County votes to halve insurance premium tax, to take effect July 1

Henderson County Fiscal Court on Jan. 13 approved an amendment to the county tax ordinance cutting the insurance premium tax from 9.75% to 4.875%, a move county officials said will reduce the tax burden on households and businesses and save taxpayers more than $2 million.

County Judge/Executive Brad Schneider told the court the reduction is possible because of the county’s strong financial position and recent coal severance revenue from a newly opened mine. “Of the three main revenue streams — property tax, insurance premium tax and net profits/occupational tax — reducing the insurance premium tax is the most advantageous because nearly everyone pays some form of insurance,” Schneider said.

Magistrate Southard moved to amend the ordinance; Magistrate Tompkins seconded. The court approved the amendment by voice vote, with all present voting in favor. Schneider said the change would apply to taxpayers beginning July 1, 2026, and that the county must approve the ordinance amendment before the Department of Insurance deadline of March 23, 2026.

Officials said the cut is intended to ease costs for businesses that insure substantial equipment — for example, farms and trucking firms — and for individual policyholders. The judge framed the move as part of an ongoing effort the court has pursued for more than a year to reduce taxes where fiscally feasible.

The Fiscal Court did not provide a line-by-line budget showing the offset for the revenue loss at the meeting; Schneider said the county’s financial performance and new severance receipts make the change possible. The court will complete the formal ordinance amendment paperwork and file with the Department of Insurance ahead of the March deadline.

The court’s next steps are procedural: finalize ordinance language, post required notices and comply with the Department of Insurance filing timetable.