House Bill No. by Representative Galle proposes to amend the annual premium tax structure for vehicle insurance policies in Louisiana. The bill specifically modifies R.S. 22:831(A)(1) to maintain the minimum annual tax of $185 for gross annual premiums of $6,000 or less. However, for policies with gross annual premiums exceeding $6,000, the tax will be reduced from $300 to $200 for each additional $10,000 or fraction thereof, starting July 1, 2026. This change aims to alleviate the financial burden on vehicle insurance policyholders.

The bill retains the existing tax structure for all other types of insurance policies not covering vehicle risks, ensuring that the adjustments apply solely to vehicle insurance. The provisions of this act will be applicable to policies issued or executed on or after the effective date of July 1, 2026. Overall, the legislation seeks to provide a more favorable tax rate for vehicle insurance, potentially benefiting consumers in the state.

Statutes affected:
HB224 Original: 22:831(A)(1)