Bill
LC 1020
Overview: Bill Number: LC 1020, Title: Generally revise insurance tax laws, Status: (LC) Draft Died in Process, Introduced: November 11, 2024Purpose and Intent: The primary goal of
Overview: Bill Number: LC 1020, Title: Generally revise insurance tax laws, Status: (LC) Draft Died in Process, Introduced: November 11, 2024
Purpose and Intent: The primary goal of this bill is to update and revise the state's insurance tax laws to ensure a more equitable and efficient system. The legislation aims to modernize the tax structure and address concerns about the competitiveness of the state's insurance market.
Key Provisions:
- Reduces the overall insurance premium tax rate from 2.75% to 2.25%
- Eliminates the current tax exemption for certain types of insurance policies, such as group life and health insurance
- Introduces a new tax credit for insurance companies that invest in affordable housing or community development projects
- Requires insurance companies to disclose their tax payments and effective tax rates to the public
- Directs the state insurance commissioner to conduct a comprehensive review of the insurance tax system
Affected Parties and Impacts:
- Insurance companies operating in the state, who will see changes to their tax obligations and potential new investment incentives
- Consumers of insurance products, who may benefit from lower premium costs due to the reduced tax rate
- Affordable housing and community development organizations, which may receive increased investment from insurance companies
Procedural and Timeline Considerations:
The bill is currently in the draft stage and has not been formally introduced in the legislature. If introduced, it would need to go through the standard legislative process, including committee hearings and votes in both chambers, before potentially being signed into law by the governor.
Compiled from official sources — confirm details with the bill’s official record.
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