Senate File 109 - Introduced SENATE FILE 109 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SF 52) A BILL FOR An Act eliminating the transfer tax imposed on insurers 1 organized in other states who elect to become domestic 2 insurers in Iowa. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1575SV (4) 84 tw/sc

S.F. 109 Section 1. Section 508.12, unnumbered paragraph 1, Code 1 2011, is amended to read as follows: 2 An insurer which is organized under the laws of any state and 3 has created or will create jobs in this state or which is an 4 affiliate or subsidiary of a domestic insurer , and is admitted 5 to do business in this state for the purpose of writing 6 insurance authorized by this chapter may become a domestic 7 insurer by complying with section 490.902 or 491.33 and with 8 all of the requirements of law relative to the organization 9 and licensing of a domestic insurer of the same type and by 10 designating its principal place of business in this state , and, 11 upon payment to the commissioner of insurance of a transfer 12 tax in a sum equal to twenty-five percent of the premium tax 13 paid pursuant to the provisions of chapter 432 for the last 14 calendar year immediately preceding its becoming a domestic 15 corporation or the sum of ten thousand dollars, whichever is 16 the lesser but not less than one thousand dollars, may become a 17 domestic corporation and be entitled to like certificates of 18 its corporate existence and license to transact business in 19 this state, and be subject in all respects to the authority and 20 jurisdiction thereof. 21 Sec. 2. Section 515.78, unnumbered paragraph 1, Code 22 2011, is amended to read as follows: 23 An insurer which is organized under the laws of any state and 24 has created or will create jobs in this state or which is an 25 affiliate or subsidiary of a domestic insurer , and is admitted 26 to do business in this state for the purpose of writing 27 insurance authorized by this chapter may become a domestic 28 insurer by complying with section 490.902 or 491.33 and with 29 all of the requirements of law relative to the organization 30 and licensing of a domestic insurer of the same type and by 31 designating its principal place of business in this state , and, 32 upon payment to the commissioner of insurance of a transfer 33 tax in a sum equal to twenty-five percent of the premium tax 34 paid pursuant to the provisions of chapter 432 for the last 35 -1- LSB 1575SV (4) 84 tw/sc 1/ 2

S.F. 109 calendar year immediately preceding its becoming a domestic 1 corporation or the sum of ten thousand dollars, whichever is 2 the lesser but not less than one thousand dollars, may become a 3 domestic corporation and be entitled to like certificates of 4 its corporate existence and license to transact business in 5 this state, and be subject in all respects to the authority and 6 jurisdiction thereof. 7 EXPLANATION 8 This bill eliminates the tax imposed on insurance companies 9 organized in other jurisdictions who elect to become domestic 10 insurers in Iowa and who have created or will create jobs in 11 the state. 12 -2- LSB 1575SV (4) 84 tw/sc 2/ 2