TAX/LOCAL: Provides for the levy of premium tax in the city of St. George. (7/1/26)

2026 Regular Session Introduced by Rick Edmonds

St. George could levy a local premium tax on insurance premiums to fund city services, with details like rate and base set by future local ordinances.

Effective date 1/1/2027.

Summary: SB 485 (Session 2026) – TAX/LOCAL

Purpose and intent

Establishes a local tax framework by authorizing the levy of a premium tax in the city of St. George, Louisiana.

The bill is framed as a local tax measure to be implemented within the jurisdiction of St. George, potentially as a funding mechanism for City services or projects tied to a premium (likely an insurance or related premium) tax, consistent with local tax authority.

Key provisions and changes

Levy Authorization: Creates authority for the city of St. George to impose a premium tax. The bill specifies that the tax applies to premiums within the city’s boundaries, subject to applicable state law and procedural requirements.

Tax Base and Rate (details not provided in the summary): The bill would define the base (types of premiums covered) and the tax rate. If enacted, the ordinance or resolution implementing the tax would need to comply with state guidance on premium taxes for municipalities.

Administration and Collection: The bill implies local administration provisions for collecting the premium tax, including enforcement and remittance processes consistent with existing local tax collection frameworks.

Use of Revenues: The bill would permit or require the use of premium tax revenues for local government operations, services, or specific projects in St. George, subject to any restrictions in state law and local ordinances.

Compliance with State Law: The measure would operate within the broader Louisiana tax framework, and must align with state statutes governing local taxes, reporting, and voter or council actions as applicable.

Affected entities and impact

Primary: Residents and businesses within the city of St. George, as premiums from insurance or other taxed activities would be subject to the new local premium tax.

Local government: City of St. George would gain a new revenue stream to fund services or capital needs, subject to the final tax rate and administration rules.

Insurers and premium payers: Insurance providers and policyholders paying premiums in St. George could see additional tax obligations, depending on the defined tax base and rate.

Procedural and timeline aspects

Status: Referred to the Committee on Local and Municipal Affairs after second-reading consideration as of April 1, 2026.

Sponsor: Includes a co-sponsor, Rep. Rick Edmonds.

Effective date: The title indicates an August 1, 2026 (8/1/26) effective date, suggesting the tax (if enacted) would begin applying on or after that date, subject to any transitional provisions.

To-do before becoming law: The bill would need passage by the Louisiana Legislature and any required local or statewide approvals, plus the development of a local ordinance by St. George outlining the tax rate, base, administration, and use of proceeds.

Notes

The summary above reflects the bill’s stated aim to authorize a premium tax in St. George and outlines typical components of such local tax measures. Specific rate, base definitions, exemptions, allocation, and administrative rules would be determined in the final enacted language or implementing ordinances.