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 policies covering stored or in-transit baled cotton from certain taxes.), As Introduced |
The bill would amend Chapters 225 (surplus lines insurance premium tax) and 226 (unauthorized and independently procured insurance premium tax) of the Insurance Code to exempt premiums on stored or in-transit for export baled cotton from the surplus lines, independently procured, and unauthorized insurance premium taxes.
Surplus lines, independently procured, and unauthorized 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.
Source Agencies: | 304 Comptroller of Public Accounts, 454 Department of Insurance
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LBB Staff: | UP, KK, SD, AG, ER
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