Relating to fire and casualty insurance premium tax

2026 Regular Session Introduced by Robbie Morris

The bill changes how fire and casualty insurance premium taxes are assessed, collected, or allocated in West Virginia, affecting revenue and distributions.

To Finance

#taxation

Summary of SB 1006 (Session 2026, West Virginia) – Relating to fire and casualty insurance premium tax

Purpose and intent

The bill addresses the state’s premium tax on fire and casualty insurance products. Its primary aim appears to modify how the premium tax is assessed, collected, or allocated, potentially altering revenue impacts for the state and distribution to relevant funds or state programs.

Key provisions and changes (provisions as indicated by bill title and action history)

The bill concerns the fire and casualty insurance premium tax, which is a tax levied on insurance premiums for fire and casualty lines of coverage. While the specific text is not provided in the action history, typical components of such bills may include:

Modifications to the tax rate or tax base for fire and casualty insurance premiums.
Changes to exemptions, deductions, or credits affecting premium tax liability.
Revisions to filing or payment deadlines, reporting requirements, or enforcement provisions.
Allocation or appropriation adjustments for premium tax revenue (e.g., distribution to the Insurance Commission, finance-related funds, or state general revenue).
Clarifications of definitions related to what constitutes fire and casualty insurance for purposes of the tax.

Note: The exact substantive changes (tables of rates, exemptions, or new compliance steps) would be detailed in the bill’s text. The action history confirms committee consideration and a substitute being reported to the Finance Committee, indicating a potential refinement of provisions.

Who would be affected

Domestic and foreign insurers issuing fire and casualty policies in West Virginia.

Policyholders paying premiums for fire and casualty insurance products (e.g., homeowners, renters, commercial property, liability policies) if the tax base or rate changes.

State and local government units that rely on premium tax revenue for budgeting or funding purposes.

Entities involved in the administration and collection of premium taxes, including the West Virginia Insurance Commission and the state Department of Finance.

Procedural and timeline aspects

Filed for introduction: February 19, 2026.

Initial committee referral: Government Organization, then Finance.

Committee substitute reported: February 24, 2026 (to Finance), indicating a revised version intended for further consideration and potential passage.

Next steps (typical process): If advanced, the bill would proceed to the full Senate for debate, potential amendments, and a vote; upon passage, it would move to the House of Delegates (or another chamber, depending on the state’s bicameral structure) for consideration and potential reconciliation. Timeline would depend on the legislative calendar.

Practical considerations and potential impacts

Revenue implications: Depending on whether the bill increases, reduces, or modifies exemptions for the premium tax, state revenue from this tax could rise or fall, affecting state budgeting and any programs funded by premium tax revenue.

Market effects: Changes to the tax could influence premium pricing strategies, insurer compliance costs, and competitive dynamics within West Virginia’s insurance market.

Administrative burden: New reporting, exemption verification, or filing requirements could affect the workload of insurers and the state tax/insurance authorities.

If you can provide the bill’s text or specific sections, I can give a more precise breakdown of the exact provisions, calculations, and fiscal impact estimates.