Report Title:
Insurance Premium Tax
Description:
Changes until 12/31/20 the insurance premium tax rates for life insurance and ocean marine insurance contracts. (HB1748 HD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1748 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO INSURANCE PREMIUM TAXES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 431:7-202, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:
"(b) Each authorized insurer shall,
with respect to life insurance contracts, [shall] pay to the director of
finance through the commissioner a tax of [2.75] per cent
on the gross premiums received from all risks resident within this State,
during the year ending on the preceding December 31, less return premiums,
dividends paid or credited to policyholders, and reinsurance accepted (the tax
upon such business being payable by the direct writing insurer).
The tax also shall apply to premiums for insurance written on individuals residing outside the State unless the direct writing insurer shall show the payment of a comparable tax to another appropriate taxing authority. Such showing may be required as to any premium written, procured, or received in the State.
(c) Each authorized insurer shall, with
respect to all ocean marine insurance contracts written within the State,
during the year ending on the preceding December 31, pay to the director of
finance through the commissioner a tax of [.8775]
_______ per cent on its gross underwriting profit. The gross underwriting profit shall be ascertained by deducting from the net premiums (i.e., gross premiums less all return premiums and premiums for reinsurance ceded) on such ocean marine insurance contracts, the net losses paid (i.e., gross losses paid less salvage and recoveries on reinsurance ceded) during such year under such contracts. In the case of an insurer issuing participating contracts, the gross underwriting profit shall not include, for computation of the tax prescribed by this subsection, the amount refunded, or paid as participation dividends, by such insurer to the holders of such contracts."
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 Statutory material to be repealed is bracketed and stricken.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, 2020, and shall be repealed on December 31, 2020; provided that section 431:7-202(b) and (c), Hawaii Revised Statutes, shall be reenacted in the form in which that section read on the day before the effective date of this Act.