Senate
Study
Bill
3002

Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
INSURANCE
AND
FINANCIAL
SERVICES
BILL)
A
BILL
FOR
An
Act
relating
to
the
taxation
of
captive
companies,
and
1
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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H.F.
_____
Section
1.
Section
432.1A,
subsection
2,
paragraph
c,
Code
1
2024,
is
amended
to
read
as
follows:
2
c.
The
amount
of
reinsurance
tax
due
from
a
captive
company
3
under
paragraph
“a”
shall
be
calculated
as
follows:
4
(1)
Twotenths
Two
hundred
thousandths
of
one
percent
on
the
5
first
twenty
million
dollars
of
assumed
reinsurance
premiums.
6
(2)
Oneeighth
One
hundred
twentyfive
thousandths
of
one
7
percent
on
the
twenty
million
dollars
of
assumed
reinsurance
8
premiums
collected
after
the
first
twenty
million
dollars
of
9
assumed
reinsurance
premiums
collected
under
subparagraph
(1).
10
(3)
Five
Fortyfive
thousandths
of
one
percent
on
each
11
dollar
the
twenty
million
dollars
of
assumed
reinsurance
12
premiums
collected
after
the
twenty
million
dollars
collected
13
under
subparagraph
(1)
and
the
twenty
million
dollars
collected
14
under
subparagraph
(2).
15
(4)
Twenty
thousandths
of
one
percent
of
each
dollar
of
16
assumed
reinsurance
premiums
collected
after
the
twenty
million
17
dollars
collected
under
subparagraph
(1),
the
twenty
million
18
dollars
collected
under
subparagraph
(2),
and
the
twenty
19
million
dollars
collected
under
subparagraph
(3).
20
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
21
importance,
takes
effect
upon
enactment.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
relates
to
the
calculation
of
the
amount
of
26
reinsurance
tax
(tax)
due
from
a
captive
company.
27
The
bill
changes
the
amount
of
tax
due
from
a
captive
company
28
on
the
first
$20
million
of
assumed
reinsurance
premiums
29
from
twotenths
of
1
percent
to
two
hundred
thousandths
of
1
30
percent;
the
amount
of
tax
due
on
the
$20
million
of
assumed
31
reinsurance
premiums
collected
after
the
first
$20
million
of
32
assumed
reinsurance
premiums
are
collected
from
oneeighth
33
of
1
percent
to
one
hundred
twentyfive
thousandths
of
1
34
percent;
and
the
amount
of
tax
due
on
each
dollar
of
assumed
35
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H.F.
_____
reinsurance
premiums
collected
after
the
first
$40
million
of
1
assumed
reinsurance
premiums
from
5
percent
on
each
dollar
to
2
fortyfive
thousandths
of
1
percent.
3
The
bill
creates
a
new
tier
of
reinsurance
tax
due
on
each
4
dollar
of
assumed
reinsurance
premiums
after
the
first
$60
5
million
of
assumed
reinsurance
premiums
in
the
amount
of
twenty
6
thousandths
of
1
percent
of
each
dollar.
7
The
bill
takes
effect
upon
enactment.
8
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