LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION

April 29, 2013

TO:	Honorable Harvey Hilderbran, Chair, House Committee on Ways & Means
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB2972 by King, Ken (relating to exempting premiums for certain insurance covering stored or in-transit baled cotton from surplus lines insurance premium taxes.), Committee Report 1st House, Substituted

To the extent that the bill's provisions would reduce the amount of premiums subject to the tax, there would be an indeterminate revenue loss to the State.

The bill would amend Chapter 225 (surplus lines insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines insurance premium taxes.

Surplus lines insurance premiums are taxed at a rate of 4.85 percent. To the extent that this bill's provisions would reduce the amount of premiums subject to the tax, tax revenues would decrease. The Comptroller of Public Accounts reports the amount of that decrease, however, cannot be determined.

The bill would take effect January 1, 2014.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 454 Department of Insurance

LBB Staff:

UP, KK, SD, AG, ER