House File 705 - Introduced HOUSE FILE BY QUIRK Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act phasing out the tax on gross premiums of life and health 2 insurance companies, mutual health service corporations, and 3 health maintenance organizations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2724HH 82 6 mg/gg/14 PAG LIN 1 1 Section 1. Section 432.1, subsection 2, paragraph e, Code 1 2 2007, is amended to read as follows: 1 3 e. For the 2006 andsubsequent2007 calendar years, one 1 4 percent. 1 5 Sec. 2. Section 432.1, subsection 2, Code 2007, is amended 1 6 by adding the following new paragraphs: 1 7 NEW PARAGRAPH. f. For the 2008 calendar year, 1 8 three=fourths of one percent. 1 9 NEW PARAGRAPH. g. For the 2009 calendar year, one=half of 1 10 one percent. 1 11 NEW PARAGRAPH. h. For the 2010 calendar year, one=fourth 1 12 of one percent. 1 13 NEW PARAGRAPH. i. For the 2011 and subsequent calendar 1 14 years, zero percent. 1 15 EXPLANATION 1 16 Under present law the tax rate on gross premiums of life 1 17 and health insurance companies, mutual health service 1 18 corporations, and health maintenance organizations is 1 1 19 percent. This bill reduces the rate beginning with the 2008 1 20 calendar year by one=fourth of 1 percent per calendar year 1 21 until the tax is eliminated for the 2011 calendar year and 1 22 subsequent calendar years. 1 23 LSB 2724HH 82 1 24 mg:rj/gg/14