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HB 510

Surplus line broker; any person required to be licensed as one shall not be subject to certain tax.

2025 Regular Session Introduced by Laura Jane Cohen and 1 co-sponsor

Virginia bill exempts surplus line brokers from specified state taxes to reduce business costs and potentially improve insurance market competitiveness.

Left in Finance and Appropriations
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Bill Summary · HB 510

Legislative bill overview

HB 510 provides a tax exemption for individuals required to be licensed as surplus line brokers in Virginia. Surplus line brokers are insurance professionals who place coverage with non-admitted insurers when standard markets cannot provide adequate coverage. The bill shields these brokers from certain state tax obligations.

Why is this important

Surplus line brokers serve a specialized but essential niche in the insurance market, helping businesses and individuals obtain hard-to-place coverage. Tax treatment affects the cost of doing business for these professionals, which can influence insurance availability and pricing in Virginia's specialty insurance markets. The bill's passage or failure could impact both broker profitability and whether Virginia remains competitive for attracting or retaining these insurance professionals.

Potential points of contention

  • Revenue impact: Exempting a professional class from taxation reduces state revenue, which Finance and Appropriations committees scrutinize carefully—hence the bill's extended consideration and rereferences
  • Scope ambiguity: The phrase "certain tax" is vague; unclear which specific taxes are exempted and whether the exemption is complete or partial, creating potential implementation issues
  • Equity questions: Granting one professional licensing category special tax treatment raises fairness concerns about why surplus line brokers receive benefits other licensed professionals may not

Compiled from official sources — confirm details with the bill’s official record.

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