HSB 121 (LSB 1200YC (2) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act relating to the insurance premium tax rates on the gross amount of premiums received by an insurance company.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 432.1, subsections 2 and 4, Code 2023, are amended to read as follows:
   2.  The “applicable percent” for purposes of subsection 1 of this section and section 432.2 is the following:
   a.  For calendar years beginning before the 2003 calendar year, two percent.
   b.  For the 2003 calendar year, one and three-fourths percent.
   c.  For the 2004 calendar year, one and one-half percent.
   d.  For the 2005 calendar year, one and one-fourth percent.
   e.  For the 2006 and subsequent calendar years year through the 2023 calendar year, one percent.
   f.  For the 2024 and subsequent calendar years, nine-tenths of one percent.
   4.  The “applicable percent” for purposes of subsection 3 is the following:
   a.  For calendar years beginning before the 2004 calendar year, two percent.
   b.  For the 2004 calendar year, one and three-fourths percent.
   c.  For the 2005 calendar year, one and one-half percent.
   d.  For the 2006 calendar year, one and one-fourth percent.
   e.  For the 2007 and subsequent calendar years year through the 2023 calendar year, one percent.
   f.  For the 2024 and subsequent calendar years, nine-tenths of one percent.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the insurance premium tax rates on the gross amount of premiums received by an insurance company.
   The bill reduces the insurance premium tax on the gross amount of premiums received by an insurance company from 1 to .90 percent for the 2024 calendar year and subsequent calendar years.