| TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB3270 by Keffer, Bill (Relating to taxable premium receipts.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2006 | ($3,235,000) |
| 2007 | ($9,996,000) |
| 2008 | ($10,296,000) |
| 2009 | ($10,605,000) |
| 2010 | ($10,923,000) |
| Fiscal Year | Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from FOUNDATION SCHOOL FUND 193 |
|---|---|---|
| 2006 | ($2,426,000) | ($809,000) |
| 2007 | ($7,497,000) | ($2,499,000) |
| 2008 | ($7,722,000) | ($2,574,000) |
| 2009 | ($7,954,000) | ($2,651,000) |
| 2010 | ($8,192,000) | ($2,731,000) |
The bill would remove uncollectible premium balances charged off for regulatory reporting purposes from the taxation of gross property and casualty premiums.
The bill would take effect September 1, 2005.
The Comptroller of Public Accounts indicates that removing uncollectible premium balances charged off for regulatory reporting purposes from the taxation of gross property and casualty premiums would reduce amounts collected from the annual gross premium tax on the order of 2 percent. This would reduce revenue deposited to General Revenue by $2,426,000 in fiscal year 2006, $7,497,000 in fiscal year 2007, $7,722,000 in fiscal year 2008, $7,954,000 in fiscal year 2009, and $8,192,000 in fiscal year 2010. It would also reduce revenue deposited to the Foundation School Fund by $809,000 in fiscal year 2006, $2,499,000 in fiscal year 2007, $2,574,000 in fiscal year 2008, $2,651,000 in fiscal year 2009, and $2,731,000 in fiscal year 2010. Fiscal year 2006 losses take into account the partial tax year.
| Source Agencies: | 304 Comptroller of Public Accounts, 454 Department of Insurance
|
| LBB Staff: | JOB, JRO, MW, RB
|