SENATE FILE 52

BY  DANDEKAR

A BILL FOR

An Act eliminating the transfer tax imposed on insurers organized in other states who elect to become domestic insurers in Iowa.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 508.12, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   An insurer which is organized under the laws of any state, and is admitted to do business in this state for the purpose of writing insurance authorized by this chapter may become a domestic insurer by complying with section 490.902 or 491.33 and with all of the requirements of law relative to the organization and licensing of a domestic insurer of the same type and by designating its principal place of business in this state, and, upon payment to the commissioner of insurance of a transfer tax in a sum equal to twenty-five percent of the premium tax paid pursuant to the provisions of chapter 432 for the last calendar year immediately preceding its becoming a domestic corporation or the sum of ten thousand dollars, whichever is the lesser but not less than one thousand dollars, may become a domestic corporation and be entitled to like certificates of its corporate existence and license to transact business in this state, and be subject in all respects to the authority and jurisdiction thereof.
EXPLANATION
   This bill eliminates the tax imposed on insurance companies organized in other states who elect to become domestic insurers in Iowa.