HB 627-FN – AS INTRODUCED
2009 SESSION
01/03
HOUSE BILL 627-FN
AN ACT relative to the insurance premium tax.
SPONSORS: Rep. Almy, Graf 11; Rep. Major, Rock 8
This bill freezes the insurance premium tax for a certain period beginning January 1, 2010 and requires the insurance commissioner and the commissioner of the department of resources and economic development to present a report to the house and senate ways and means committees relative to jobs and certain insurance revenues.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0501
01/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT relative to the insurance premium tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Insurance; Premium Tax. Amend RSA 400-A:32, I(a)(3) and (4) to read as follows:
(3) Effective January 1, [2010] 2012, a tax of 1.25 percent for all lines of business written pursuant to RSA 401:1, I-III and V-VIII, and RSA 401:1-a, I and II; and
(4) Effective January 1, [2011] 2013, a tax of one percent for all lines of business written pursuant to RSA 401:1, I-III and V-VIII, and RSA 401:1-a, I and II.
2 New Paragraph; Insurer Retention Plan; Reporting. Amend 2006, 277:4 by inserting after paragraph II the following new paragraph:
III. Before May 15, 2010, the insurance commissioner and the commissioner of the department of resources and economic development shall jointly present a report to the house and senate ways and means committees detailing the number of re-domestications and new jobs associated therewith, in addition to comparative data on the total number of property and casualty insurance jobs and insurance revenues in the state in 2006 and 2010.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
09-0501
Revised 02/18/09
HB 627 FISCAL NOTE
AN ACT relative to the insurance premium tax.
FISCAL IMPACT:
The Insurance Department states this bill will increase state revenue by $5,100,000 in FY 2011, $8,800,000 in FY 2012, and $1,900,000 in FY 2013. There will be no fiscal impact on county and local revenue or state, county and local expenditures.
METHODOLOGY:
This bill freezes the insurance premium tax for a certain period beginning January 1, 2010 and requires the Insurance Commissioner and the Commissioner of the Department of Resources and Economic Development to present a report to the House and Senate Ways and Means Committees relative to jobs and certain insurance revenues. The Insurance Department states this bill postpones further decreases in the insurance premium tax rate scheduled for January 1, 2010 and January 1, 2011 until January 1, 2012 and January 1, 2013. Using the projection models used to project premium taxes and fiscal year revenue, the Department estimates that the proposed legislation will increase state revenues by $5,100,000 in FY 2011, $8,800,000 in FY 2012, and $1,900,000 in FY 2013.
The Department of Revenue Administration acknowledges the proposed legislation will have some effect on the amount of credit available against the business profits tax, however, the Department states it would take a more significant change in the insurance premium tax rate to have much of an impact on reducing the amount of credit available to offset taxpayers’ business profits tax liabilities.
The Department of Resources and Economic Development states the proposed legislation will have no fiscal impact on the Department.