Text: HSB00115                          Text: HSB00117
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 116

Bill Text

PAG LIN
  1  1    Section 1.  Section 518.18, unnumbered paragraph 2, Code
  1  2 2003, is amended to read as follows:
  1  3    Two The applicable percent of the gross amount of premiums
  1  4 received during the preceding calendar year, after deducting
  1  5 the amount returned upon the canceled policies, certificates,
  1  6 and rejected applications; and after deducting premiums paid
  1  7 for windstorm or hail reinsurance on properties specifically
  1  8 reinsured; provided, however, that.  However, the reinsurer of
  1  9 such windstorm or hail risks shall pay two the applicable
  1 10 percent of the gross amount of reinsurance premiums received
  1 11 upon such risks after deducting the amounts returned upon
  1 12 canceled policies, certificates, and rejected applications.
  1 13 For purposes of this section, "applicable percent" means the
  1 14 same as specified in section 432.1, subsection 4.
  1 15    Sec. 2.  Section 518A.35, Code 2003, is amended to read as
  1 16 follows:
  1 17    518A.35  ANNUAL TAX.
  1 18    A state mutual insurance association doing business under
  1 19 this chapter shall on or before the first day of March, each
  1 20 year, pay to the director of revenue and finance, or a
  1 21 depository designated by the director, a sum equivalent to two
  1 22 the applicable percent of the gross receipts from premiums and
  1 23 fees for business done within the state, including all
  1 24 insurance upon property situated in the state without
  1 25 including or deducting any amounts received or paid for
  1 26 reinsurance.  However, a company reinsuring windstorm or hail
  1 27 risks written by county mutual insurance associations is
  1 28 required to pay a two the applicable percent tax on the gross
  1 29 amount of reinsurance premiums received upon such risks, but
  1 30 after deducting the amount returned upon canceled policies and
  1 31 rejected applications covering property situated within the
  1 32 state, and dividends returned to policyholders on property
  1 33 situated within the state.  For purposes of this section,
  1 34 "applicable percent" means the same as specified in section
  1 35 432.1, subsection 4.  
  2  1                           EXPLANATION
  2  2    This bill reduces the premiums tax rate from 2 percent to 1
  2  3 percent for county and state mutual insurance associations.
  2  4 The reduction is phased in with the tax rate equal to 1.75
  2  5 percent for the 2004 calendar year, 1.50 percent for the 2005
  2  6 calendar year, 1.25 percent for the 2006 calendar year, and
  2  7 1.0 percent for the 2007 calendar year and subsequent calendar
  2  8 years.  This phased-in reduction was enacted during the 2002
  2  9 Legislative Session for insurance companies other than life
  2 10 insurance companies and mutual service corporations.  
  2 11 LSB 2035YC 80
  2 12 mg/cl/14
     

Text: HSB00115                          Text: HSB00117
Text: HSB00100 - HSB00199               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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