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HB 594

TAX/INSURANCE PREMIUM: Establishes a flat rate of insurance premium tax and provides relative to certain insurance premium tax credits and exemptions (RR SEE FISC NOTE GF RV)

2025 Regular Session Introduced by Beryl Amedée and 12 co-sponsors

HB 594 replaces Louisiana's variable insurance premium tax with a flat rate structure and establishes new tax credits and exemptions, directly affecting insurance costs and state revenue.

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Bill Summary · HB 594

Legislative bill overview

HB 594 restructures Louisiana's insurance premium tax system by establishing a flat tax rate instead of the current tiered or variable rate structure. The bill also creates new tax credits and exemptions for certain types of insurance premiums, potentially affecting both insurers' tax obligations and consumer costs.

Why is this important

Insurance premium taxes are passed along to consumers through higher premiums, so changes to this tax structure directly affect what Louisiana residents pay for auto, home, health, and other insurance. The bill's impact on state revenue and insurance affordability depends heavily on whether the flat rate is higher or lower than the current average effective rate and which exemptions are included.

Potential points of contention

  • Revenue uncertainty: Shifting to a flat rate could either increase or decrease state insurance tax revenue, with unclear fiscal implications for state budgets and services
  • Competitive effects: Different tax treatment of certain insurance types could disadvantage some insurers or favor others, potentially affecting market competition and consumer choice
  • Regressive impact: If the flat rate creates higher costs for basic insurance products, lower-income Louisianans who spend proportionally more on insurance could bear a larger burden

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

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