Bill
A 6977
Overview: A 6977, Relates to the fire insurance premium tax on foreign and alien insurers, REFERRED TO INSURANCE, Introduced: March 18, 2025Purpose and Intent: The purpose of this
Overview: A 6977, Relates to the fire insurance premium tax on foreign and alien insurers, REFERRED TO INSURANCE, Introduced: March 18, 2025
Purpose and Intent: The purpose of this bill is to modify the fire insurance premium tax rate for foreign and alien insurance companies operating in New York. The goal is to ensure a more equitable tax structure and level the playing field for all insurers.
Key Provisions:
- Increases the fire insurance premium tax rate for foreign and alien insurers from 2% to 2.5% of gross direct premiums.
- Maintains the existing 2% tax rate for domestic (in-state) insurance companies.
- Directs the additional revenue generated from the higher tax rate to be used for fire protection and prevention programs.
Affected Parties and Impacts:
- Foreign and alien insurance companies operating in New York will be subject to the higher 2.5% fire insurance premium tax rate.
- Domestic insurance companies will continue to pay the 2% tax rate, maintaining a competitive advantage.
- Consumers may see a slight increase in fire insurance premiums from foreign and alien insurers to offset the higher tax burden.
- Fire protection and prevention programs in New York will receive additional funding from the increased tax revenue.
Procedural and Timeline Considerations:
The bill has been referred to the Insurance Committee for further consideration. If passed, the new tax rate for foreign and alien insurers would likely be implemented within a reasonable timeframe, potentially at the start of the next fiscal year or insurance policy renewal period.
Compiled from official sources — confirm details with the bill’s official record.
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