Proyectos de ley › 90.ª Asamblea General
Relating to the taxation of captive companies, and including effective date provisions
Presentado por el comité Commerce de la Cámara
Dónde está ahora
- Hecho: Presentado9 de enero de 2024
- Hecho: Subcomité9 de enero de 2024
- Hecho: Comité de la Cámara18 de enero de 2024
- Se saltó: Lo aprueba la CámaraSigue como HF 2636
- Sigue: Comité del Senado
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Ahora es HF 2636 → Sigue avanzando con el número nuevo. Ir a HF 2636 ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA Captive insurance companies would pay different rates for their reinsurance taxes under this law. The bill changes the tax percentages for different levels of premium amounts, including creating a new, lower tax rate for companies that write more than $60 million in premiums. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill relates to the calculation of the amount of reinsurance tax (tax) due from a captive company. The bill changes the amount of tax due from a captive company on the first $20 million of assumed reinsurance premiums from two-tenths of percent to two hundred thousandths of percent; the amount of tax due on the $20 million of assumed reinsurance premiums written after the first $20 million of assumed reinsurance premiums are written from one-eighth of percent to one hundred twenty-five thousandths of percent; and the amount of tax due on each dollar of assumed reinsurance premiums written after the first $40 million of assumed reinsurance premiums from percent on each dollar to forty-five thousandths of percent. The bill creates a new tier of reinsurance tax due on each dollar of assumed reinsurance premiums after the first $60 million of assumed reinsurance premiums in the amount of twenty thousandths of percent of each dollar. The bill takes effect upon enactment.
Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse2
House subcommittee
Named February 20, 2024. On February 22, 2024 it recommended passage. Vote Total: 3-0.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Can’t be estimated Compare con otros proyectos
Resumen con IA This bill changes the amount of reinsurance tax that captive insurance companies must pay on certain premiums. Because there is currently no market for captive insurance in the state, the fiscal impact to the state cannot be determined. The bill may decrease future tax revenue to the Captive Insurance Regulatory and Supervision Fund. (en inglés)3
Lea la nota fiscal (en inglés)
Description
House File 2636 relates to the taxation of captive companies. The Bill amends the amount of reinsurance tax due from a captive company on assumed reinsurance premiums written. The Bill takes effect upon enactment.
Background
2023 Iowa Acts, Senate File 549 (Captive Insurance Act), allowed for the formation of captive insurance companies and protected cell captive companies, established tax rates for captive insurance premiums, established requirements for the operation of captive insurance companies and protected cell captive companies, and created the Captive Insurance Regulatory and Supervision Fund.
Captive insurance companies are a form of self-insurance in which the insurance provider is owned entirely by the insurance holder. Captive insurance companies often work with traditional companies and may be an option for businesses to manage risks by underwriting their own insurance rather than paying premiums to a third-party insurer. Current and proposed reinsurance tax rates due from captive companies on assumed reinsurance premiums are shown in Figure 1 below.
Figure 1 — Reinsurance Premium Tax Rate Changes in HF 2636
Assumption
Changes in reinsurance tax rates for captive insurance premiums may have an impact on revenue collected in the Captive Insurance Regulatory and Supervision Fund, but the amount cannot be estimated, as there is not currently a market for captive insurance in the State.
Fiscal Impact
House File 2636 may decrease tax revenue to the Captive Insurance Regulatory and Supervision Fund in future years, as the Bill reduces the tax collected on each captive insurance company’s reinsurance premiums that are in excess of $40.0 million annually. Reinsurance premium taxes collected on a captive insurance company’s reinsurance premiums written between $40.0 million and $60.0 million will reduce from 5.000% to 0.045%, a 99.1% reduction. Reinsurance premium taxes collected on a captive insurance company’s reinsurance$0.0 to $20.0 $20.0 to $40.0 $40.0 to $60.0 $60.0 and Above Current Law 0.200% 0.125% 5.000% 5.000% Proposed Law 0.200% 0.125% 0.045% 0.020%
Amount of Assumed Reinsurance Premiums Written
(Dollars in Millions) premiums written in excess of $60.0 million will reduce from 5.000% to 0.020%, a 99.6% reduction.
There are not currently any reinsurance premium taxes collected on captive insurance companies; therefore, the fiscal impact to the State cannot be determined.
Sources
- Iowa Insurance Division, Department of Insurance and Financial Services
- Legislative Services Agency analysis
- Final Fiscal Note — Captive Insurance Companies, Reinsurance Tax · 8 de mayo de 2024
- Captive Insurance Companies, Reinsurance Tax · 4 de marzo de 2024
- Captive Insurance Companies, Reinsurance Tax · 29 de febrero de 2024
- Captive Insurance Companies, Reinsurance Tax · 28 de febrero de 2024
Lo que cambia del Código de Iowa (Iowa Code)
Modifica§432.1A
Cabildeo
1 a favor · 0 en contra · 17 indecisos · Quiénes →