Report Title:

Premium tax elimination

Description:

Eliminates the premium tax on health insurers.

THE SENATE	S.B. NO.	1416
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO TAXATION OF INSURANCE PREMIUMS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 431:7-202, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each authorized insurer, except with respect to all life insurance contracts, ocean marine insurance contracts, [and] real property title insurance contracts, and prepaid health care plan contracts defined in chapter 393, shall pay to the director of finance through the commissioner a tax of 4.265 per cent on the gross premiums written from all risks or property resident, situated, or located within this State, during the year ending on the preceding December 31, less return premiums (but not including dividends paid or credited to policyholders), and less any reinsurance accepted (the tax upon such business being payable by the direct writing insurer).

     All premiums written, procured, or received in the State shall be presumed to have been from risks or property resident, situated, or located within the State.  This presumption may be rebutted as to any premium:

     (1)  By showing that it has been properly allocated or apportioned and reported as a taxable premium of another state or other appropriate taxing authority; or

     (2)  By facts as to the residence, situation, or location of the risks or property, conclusively showing the nontaxability of the premium."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2007, and shall apply to all gross premiums received after June 30, 2007.

INTRODUCED BY:	_____________________________
	BY REQUEST