House Bill No. 25RS-956 seeks to reform the insurance premium tax structure in Louisiana by establishing a flat tax rate of 2.8% on gross annual written premiums, replacing the previous minimum tax system. The bill introduces a mechanism for gradual tax rate reductions, allowing the rate to decrease by 0.2% if total tax collections surpass $273 million, with a minimum cap of 1%. Additionally, it mandates that insurers separately state premium taxes and any additional fees on policy declaration pages, although health maintenance organizations are exempt from this requirement.

The legislation also repeals existing tax credits, including those for retaliatory taxes paid by domestic insurers and the Louisiana Capital Companies Tax Credit Program. It sets new criteria for qualifying Louisiana investments, which must be made by businesses operating within the state, and outlines specific tax reduction percentages based on the level of these investments. The bill aims to streamline the insurance premium tax process while encouraging local investment, ultimately contributing to the economic growth of Louisiana.

Statutes affected:
HB594 Original: 22:831(A)(1), 22:833(B)(2), 22:836(S, 22:842(A)(1), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:836(B)
HB594 Engrossed: 22:831(A)(1), 22:832(A)(3), 22:833(B)(2), 22:842(A)(1), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:832(D)
HB594 Reengrossed: 22:831(A)(1), 22:832(A)(2), 22:833(B)(2), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:832(D)
HB594 Re-Reengrossed: 22:831(A)(1), 22:832(A)(2), 22:833(B)(2), 22:855(A)(2), 22:2058(A)(3), 22:2092(B), 22:16(4), 22:832(D)